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Taxes on Buying a New Car in India: Complete Guide for 2025 Published on: 22 June Purchasing a new car is a major milestone in India, whether it's your first vehicle or a long-awaited upgrade. While car models, mileage, and insurance grab your attention, one often-overlooked aspect is taxation . Understanding the taxes on buying a new car in India is essential for budgeting correctly and avoiding hidden costs. In this comprehensive guide, we explain the different types of taxes involved in a new car purchase, how they're calculated, applicable GST rates, RTO charges, and potential exemptions or benefits available in 2025. Table of Contents Overview of Car Taxes in India GST on New Cars Road Tax (RTO Tax) Registration Charges Green Tax and Other State Levies Taxes for Electric Vehicles (EVs) Tax Benefits on Car Loans FAQs on Car Taxes in India Final Thoughts 1. Overview of Car Taxes in India  When buying a new car in India, you’re responsible ...