Road Tax in Gujarat: Rates, Calculation, and Online Payment Guide

Posted on: Dec 23, 2024 | 3 mins | Written by: HDFC ERGO Team

Road Tax in Gujarat: Rates, Calculation, and Online Payment Guide

Gujarat's Progressive Industrial and Economic development is complemented by its robust road network which has enabled them to have an efficient road network among the cities and towns. Gujarat has levied a road tax on all vehicle owners so that it may maintain and improve these roads. This blog is all about gaining a total understanding of road tax in Gujarat like the calculation, rates and payment methods.

What is Road Tax in Gujarat?

Road tax in Gujarat is a necessary tax, which the state government, a tax on vehicle owners. It is a payment for a one-time or every year to register a vehicle and use state roads. Reverved funds are collected that help improve infrastructure, maintain the roads, and develop better transportation aspects in Gujarat.

This road tax applies to all vehicles, including two wheelers, three-wheelers, four-wheelers and vehicles which were outside Gujarat but are running in this state. Vehicle, age, fuel type, engine power, and cost all come into play in determining the tax rate.

How to Pay Gujarat Road Tax Online?

Paying road tax through the Gujarat government is as simple as a click of a button and where you'll have the option to pay in cash or online. Here’s a step-by-step guide to paying your road tax online:

1. Visit the Official Portal:

Its official website or Vahan portal.

2. Login/Register:

When you log in, use your credentials. If you haven't created an account, create one.

3. Select Tax Payment Option:

Search your vehicle details in the road tax payment section.

4. Verify Tax Amount:

The vehicle details are used to calculate the tax for you. Verify the amount displayed.

5. Make Payment:

Use available payment options such as net banking, debit/credit card, or UPI.

6. Receive Receipt:

Upon successful payment, you will receive a digital receipt. Keep this for future reference.

Gujarat Road Tax Calculation

Road tax in Gujarat is calculated based on specific parameters, including:

1. Vehicle Type:

There are different tax rates for two-wheelers, three-wheelers, four-wheelers and commercial vehicles.

2. Age of Vehicle:

Depreciation also leads older vehicles to attract lower tax rates.

3. Engine Capacity:

The higher the engine displacement, the higher the rate you are taxed for transportation.

4. Fuel Type:

You're always gonna be a bit softer — concessions are typically given for electric and hybrid vehicles over petrol or diesel vehicles.

5. Ex-Showroom Price:

The tax rate applicable for private vehicles is a per cent of the vehicle's ex-showroom price.

In case, the percentage of the road tax rate of a four-wheeler is 10% of the ex-showroom price and the car price is ₹8,00,000, then the tax payable will be ₹80,000.

Road Tax in Gujarat for Two-Wheeler

In Gujarat, there are plenty of two-wheelers. The two-wheeler road tax is largely based on an increased engine capacity and purchase value of the bike. Rates are lower than four-wheelers and other vehicles. Here's a general breakdown:

• Engine Capacity Below 100cc:

It’s affordable as a result of lower tax rates — it’s perfect for entry level vehicles.

• Engine Capacity Above 100cc:

Higher engine capacity attracts higher tax rates to two-wheelers.

The electric two wheelers are also likely to benefit from subsidies or exemption to encourage sustainable transport.

Road Tax in Gujarat for Three-Wheelers

Auto rickshaws and goods carriers in three-wheelers are of great importance for local transport and small-scale logistics. The road tax for three-wheelers in Gujarat depends on:

• The purpose of the vehicle (goods or passenger).

• Gross vehicle weight (GVW), or engine capacity.

• Type of fuel used.

Goods carriers pay income tax differently from passenger vehicles. Tax benefits are often enjoyed by Compressed natural gas (CNG) or electric three wheelers rather than the diesel variants.

Road Tax in Gujarat for Four-Wheelers

Four-wheelers, including private cars and commercial vehicles, have a more comprehensive tax structure:

A. Private Cars:

Road tax is computed as a proportion of car ex-showroom cost. For instance:

Rate up to ₹6,00,000, tax may be a little about 6%.

A rate above 10% may also be applicable to cars above ₹15,00,000.

B. Commercial Vehicles:

With regard to the above, the taxes are on taxis, buses, and goods carriers and are based on seating capacity or GVW.

Road Tax for Other State Vehicles in Gujarat

If you take vehicle ownership from another state to Gujarat and want to use the vehicle in Gujarat for more than 12 months, you are required to pay the road tax. The value of the depreciated vehicle is used to calculate the tax amount. Here’s what you need to do:

• Get a No Objection Certificate (NOC) from the state of registration.

• Re-register in Gujarat.

• After calculation, pay the applicable road tax.

Failure to pay the road tax can take you before the magistrate's court where you will be subject to penalties, and if uncooperative, legal action.

Alongside paying your road tax, having appropriate car insurance—whether it’s comprehensive car insurance or third party car insurance — provides an additional layer of financial protection.

FAQs on Road Tax in Gujarat

1. If I go and change my state can I get my road tax back from the Gujarat state or not?

If the new state has re-registered you, you can get a refund if you can prove you did not pay. Depreciated value is worked out and based on that, a refund is calculated.

2. Is there any exemption for Road tax in Gujarat?

After all, electric vehicles, along with many government vehicles, are exempted or taxed lower.

3. What effect does road tax have on car insurance premiums?

Although road tax doesn’t affect car insurance directly, clearly it is important to have valid road tax documentation for a claim of insurance benefits which is mandatory mostly in the case of comprehensive insurance policies.

4. Is it possible to pay Gujarat road tax offline?

Walking into the Regional Transport Office (RTO) to pay road tax is, of course, possible. Online payment is however more convenient.

5. Am I going to jail for not paying the road tax?

Road tax must be paid and failure to do so can attract fines, or the seizure of your vehicle and even legal consequences.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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