Company extends 10 percentage point GST cut to customers as government reduces rates from 28% to 18%
11 Sep 2025 | 4222 Views | By Glenn Noronha
VE Commercial Vehicles (VECV) announced Thursday that it will pass on the complete benefit of revised GST rates to customers purchasing Eicher trucks and buses from September 22, 2025. The move follows the GST Council's decision to reduce goods and services tax on commercial vehicles from 28% to 18%, providing ...
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VE Commercial Vehicles (VECV) announced Thursday that it will pass on the complete benefit of revised GST rates to customers purchasing Eicher trucks and buses from September 22, 2025. The move follows the GST Council's decision to reduce goods and services tax on commercial vehicles from 28% to 18%, providing savings of up to Rs. 6 lakhs per vehicle.
The GST reduction applies to VECV's diesel, CNG and LNG vehicle ranges, while electric trucks and buses continue to benefit from the existing 5% GST rate. The price reductions vary across product categories, with light and medium-duty trucks seeing savings of Rs. 1.0-2.0 lakhs, heavy-duty trucks Rs. 1.5-6.0 lakhs, and buses Rs. 1.1-3.4 lakhs.
The GST cut represents the government's effort to reduce logistics costs in line with the PM Gati Shakti program, which aims to improve multi-modal connectivity and drive economic efficiency. The commercial vehicle sector has faced challenges from slowing sales and rising input costs, making the tax reduction a significant relief measure for the industry.
Mr. Vinod Aggarwal, MD & CEO, VECV, said, "We sincerely thank the Hon'ble Prime Minister, Hon'ble Finance Minister and the GST Council for this landmark decision to reduce GST on trucks and buses from 28% to 18%. This reform in line with the vision of Hon'ble Prime Minister provides timely relief after a period of slowing sales and rising input costs in the CV sector. Beyond immediate customer benefits, the macro-economic impact is equally significant—lower logistics costs in line with the PM Gati Shakti program, stronger consumer sentiment, and a predicted boost to GDP from heightened activity in logistics and allied industries."
The price reduction affects VECV's complete range of Eicher-branded commercial vehicles. The company positions this as supporting faster adoption of safer, fuel-efficient vehicles while helping fleet operators, small businesses, and owner-drivers reduce their Total Cost of Ownership.