In essence, the Vahan tax is authorities recovering funds spent on deploying safety and recovery services on India's streets. This article examines the Gujarat road tax in detail.
The Indian Government levies road taxes to maintain state highways and national highways. Funds collected are used to improve road infrastructure and help commuters. Furthermore, taxes ensure road safety and security. The road tax imposed on a vehicle in Gujarat depends on a number of factors. All types of vehicles are subject to taxes. Road tax amounts vary based on vehicle type, age, engine capacity, and purpose.
As one of the most developed states in India, Gujarat is home to a well-connected network of roads. The state collects taxes from all vehicle owners, regardless of whether they own a transport vehicle, a non-transport vehicle, or a new vehicle. Road taxes are levied and collected by the Gujarat Transport Department (Capital City: Gandhinagar – Popular City: Ahmedabad).
Why Is Road Tax Levied on Buyers?
A total of over 5 million kilometres of roadways extend across the Indian subcontinent, making it one of the largest networks in the world.
An Indian tax is levied on vehicle owners to cover the costs of maintaining such a vast network of roads and providing basic amenities like street lights and road signs. Suppose a driver cannot avoid an on-road mishap. In that case, the collected funds are used to provide safety measures and emergency first aid. With time and increased use of the roads, this money also goes towards expanding the roadway network and upgrading highways and expressways.
| Under Section 39 of the Motor Vehicle Taxation Act 1988, buyers will be required to pay a specific amount as tax when buying a new vehicle. |
How to Calculate Gujarat Road Tax?
Vehicle type, capacity, age, and other factors affect road tax in Gujarat. The taxes are collected on a lump sum basis, so your vehicle will be covered for its entire operating life. Road taxes are always required when purchasing a new or used vehicle.
Depending on the vehicle’s total cost, taxes may be applied as an amount or as a percentage. There is a flat rate for a class of vehicles across all categories in Gujarat, making it one of the simplest road tax structures in the country. A tractor used for agricultural purposes, an auto rickshaw, and an invalid carriage weighing up to 250 kilograms are exempt from tax.
Two-wheeler tax
- In the state, all new two-wheelers must pay a flat rate of 6% of the total cost of the vehicle. For resold vehicles up to 8 years old, a 15% lump sum is charged. The road tax on vehicles older than 8 years is 1% of the lump sum or Rs. 100, whichever is higher.
Four-wheeler tax
- On newly purchased and registered four-wheelers in Gujarat, 6% of the total cost is taxed. Only private non-transport vehicles are subject to this tax rate.
State Vehicle Provisions
| Types of Vehicles | Tax |
| Lump Sum Tax | |
| Motorcycle | 6% of the cost of the vehicle |
| Three, Four Wheeler, LMV, Station Wagon, Private Car, Jeep, Taxi. Tractor (Commercial use upto 2000kgs) | 6% of the cost of the vehicle |
| Auto Rickshaw | |
| Seating Capacity up to 3 | 2.5% of the cost of the vehicle |
|
Seating Capacity above 3 and up to 6
|
6% of the cost of the vehicle |
| Goods vehicles having GVW up to 7500 kgs | 6% of the cost of the vehicle |
| Tractor (Agriculture use) | 3.5% of the cost of the vehicle |
| Vehicles owned by persons other than individuals, universities, education trusts, public trusts and social welfare are taxed twice, except for auto rickshaws, taxicabs, goods vehicles weighing up to 7500 kg, and invalid carriages weighing up to 250 kg. | |
| For imported vehicles, the lump sum tax is twice the rate, except for goods vehicles up to 7500 kilograms and invalid carriages up to 250 kilograms. | |
| Optional Lump Sum Tax | |
| Maxi Cab and Ordinary OmniBus (Seating Capacity 7 to 12 excluding driver) | 12% of the cost the of vehicle |
| Medium Goods Vehicle ( GVW 7501 Up To 12000 Kgs ) | 8% of the total cost of the vehicle |
| Heavy Goods Vehicles ( GVW above 12001 kgs ) | 12% of the cost the of vehicle |
| Lump Sum Tax While Re- Selling the Vehicle | |
| Vehicles paying lump sum tax are subject to transfer tax at the time of resale | |
| Age of the Vehicle During Transfer | |
| Up to 8 Years | 15% of the Lump sum Tax Paid |
| More Than 8 Years |
1% of the Lump sum Tax paid or Rs.100 whichever is More
|
**There are three types of vehicles that are exempt from the Transfer Tax: Tractors (for agricultural purposes), Auto Rickshaws carrying three passengers only, and invalid carriages weighing up to 250 kilograms
| Recurring Tax | |
| Contract Carriage |
Annual Rate Per Seat
|
| Ordinary OmniBus | |
| Seating Capacity Up to 12 | ₹1200 |
| Seating Capacity which has more than 12 and up to 20 | ₹ 3000 |
| Seating Capacity More Than 20 | ₹3600 |
| Luxury OmniBus | |
| Seating Capacity Up to 20 | ₹4620 |
| Seating Capacity More Than 20 | ₹ 6000 |
| Sleeper OmniBus | |
| Berth/ Sleeper Capacity Up to 20 |
₹9000
|
| Berth/ Sleeper Capacity More Than 20 | ₹12,000 |
| In sleeper Bus, a combination of seat and berth total upto 20 |
Each seat ₹4620 and Each berth ₹9000 |
| In sleeper Bus, a combination of seat and berth total above 20 |
Each seat ₹6000 and Each berth ₹12,000 |
| Goods Vehicles Having GVW More than 7500 Kgs | ₹650 per 1000 Kgs or Part thereof |
| Tractor-Prime mover with more than 2000kg attached with /or not (Crain, compressor, Rig) | ₹2000 + ₹400 per every 1000kgs or part thereof that exceeds 2000kgs |
| Construction Equipment Vehicle – Crain, Loader, Rig, Fork Lift, Backhoe | |
| Break Down van-Towing Truck | |
| Special Purpose Vehicle | |
| Berth/Sleeper Capacity Up to 20 | ₹500 per Seat |
| Berth/Sleeper Capacity More Than 20 | ₹200 per Seat |
|
In sleeper Bus, a combination of seat and berth total upto 20
|
₹500 per Seat
|
| Stage Carriage passenger vehicle | |
|
₹1200 for First 9 seat + ₹80 for every passenger in addition to 9 passengers at ₹40 for each standees.
|
|
Other State Vehicle Provisions
| Kind of Vehicle | Period of Temporary Use | Procedure for Tax Calculation |
| (Luxury or tourist buses and Maxi Cab) | Minimum of one week or a part of it | A percentage of the total annual rate per week or a part of it |
| (Luxury or tourist buses and Maxi Cab) | More than one week and up to a month | 1/12 of Annual rate |
| Taxi | Provision for Other State vehicle | |
| Passenger capacity | Annual Rate | A percentage of the total annual rate per week or a part of it |
| Up to 3 | ₹300 | |
| Up to 4 |
₹1200
|
|
| Up to 5 | ₹1350 | |
| Up to 6 | ₹1500 | |
Gujarat Road Tax Payment
Road taxes in Gujarat can be paid by visiting any of the district RTO offices and submitting the necessary forms and documents. It is a simple process that can be completed without a lot of hassle. Keep your tax receipt or challan for future reference.
