Buying a Car This Dussehra 2026? On-Road Price Explained: GST, Road Tax, Insurance and 7 Checks Before Delivery

Dussehra falls on Tuesday, 20 October 2026, Dhanteras on Friday, 6 November and Diwali on Sunday, 8 November. If a new car is on your list this festive season, the number that matters is not the big ex-showroom figure in the ad. It is the on-road price, the amount you actually pay before the keys are handed over. Here is how that number is built, line by line, with real Delhi figures.

What makes up the on-road price

• Ex-showroom price: the factory price plus GST. This is the base everything else is calculated on.
• RTO charges: state road tax plus registration fee, number plates and smart card fees.
• Insurance: mandatory third-party cover, plus own damage and any add-ons.
• TCS: 1% tax collected at source if the car costs more than Rs 10 lakh.
• Optional extras: extended warranty, accessories packs, and sometimes handling or logistics charges.

GST after GST 2.0: what is inside the ex-showroom price

From 22 September 2025, the GST Council rejigged car taxes and abolished the compensation cess. Small petrol, CNG and LPG cars (up to 4 metres long and up to 1200cc) and small diesel cars (up to 4 metres and up to 1500cc) now pay 18% GST, down from 28% plus cess. Bigger cars move to a flat 40% with no cess, which still works out lower than the old 43% to 50% total. Electric cars stay at 5%, according to CarDekho.

GST is already inside the ex-showroom price. Because road tax and insurance are calculated on that price, the cut trimmed the rest of the bill too.

Road tax: the biggest swing factor

Road tax is a one-time, lifetime state tax, usually a percentage of the ex-showroom price. It climbs with price and is often higher for diesel.

• Delhi: petrol 4% up to Rs 6 lakh, 7% from Rs 6 to 10 lakh, 10% above Rs 10 lakh. Diesel is 5%, 8.75% and 12.5% (ICICI Lombard).
• Maharashtra: petrol 11%, 12% and 13% across the up to Rs 10 lakh, Rs 10 to 20 lakh and above Rs 20 lakh slabs; diesel 13% to 15%; CNG lower (Digit, Shriram General Insurance).
• Karnataka: 13% up to Rs 5 lakh, 14% up to Rs 10 lakh, 17% up to Rs 20 lakh and 18% above, plus cess (Shriram General Insurance).
• Tamil Nadu: life tax revised on 9 November 2023 to 12%, 13%, 18% and 20% across the below Rs 5 lakh, Rs 5 to 10 lakh, Rs 10 to 20 lakh and above Rs 20 lakh slabs (Taxscan).

Many states waive or cut road tax on electric cars, though some are rolling that back. We cover that in our separate EV road tax guide, so we will not repeat it here.

Registration, HSRP and FASTag

The RTO line also covers the registration fee and smart card. New vehicles must come with high security registration plates supplied by the maker since 1 April 2019 (Autocar Pro), and FASTag is mandatory for all four-wheelers since 1 January 2021. Check these small items are not billed twice.

TCS: 1% above Rs 10 lakh, and you can get it back

If the car costs more than Rs 10 lakh, the dealer collects 1% as TCS. This continues under the new Income-tax Act, 2025 from 1 April 2026, now under section 394(1), replacing the old section 206C(1F) (TDSMAN). It is not an extra cost in the long run: the amount shows up as a tax credit against your PAN, and you can adjust it in your return or claim a refund (ClearTax). Give the dealer your correct PAN.

Insurance, extended warranty and accessories

Since 1 September 2018, every new car needs three-year third-party cover. Own damage can be bought for one year or three years (Business Standard, quoting IRDAI). Add-ons such as zero depreciation, engine protect, return to invoice and roadside assistance raise the premium.

You can choose your own insurer: compare two or three quotes with the same add-ons. Extended warranty is worth it on feature-heavy cars. Accessory packs are optional, and you can fit many items yourself, such as a K713A wireless CarPlay box for a car with wired CarPlay, or a 240W LED headlight upgrade (check local rules on headlight modifications first).

Handling and logistics charges: what the record says

This is the grey area. In 2018, a Pune RTO officer told Rushlane that charging handling charges was illegal and that dealers had been told to stop. But in 2012 the Delhi High Court, in C. Rajaram v. GNCT of Delhi, declined to issue a general ban. It said each case had to be judged on its facts, and the transport department should act on complaints of extra charges linked to registration. Ask for an itemised written quote and escalate to the carmaker or a consumer forum if you feel coerced.

Worked example: Delhi on-road prices

Here is how the layers add up for base petrol manual variants in Delhi, using CarWale's on-road breakups. Dealer quotes will vary, and festive discounts are not included.

Notice the jump on the Creta. It crosses Rs 10 lakh, so it falls into Delhi's 10% road tax slab and attracts TCS. The Nexon sits in the 7% slab. A small difference in ex-showroom price near a slab boundary can move the whole bill.

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7 checks before delivery (PDI)

• Paperwork: match the VIN and engine number on the car with the invoice and Form 21/22. Check the manufacturing month.
• Odometer and tyres: expect very low kilometres. Check tyre date codes and pressures with a 150 PSI tyre inflator, set to the door-jamb figure.
• Paint and panels: look for swirl marks, dents and uneven gaps. A 1200 GSM microfiber towel helps wipe dust so flaws show.
• Electricals: test all lights, wipers, AC, windows, speakers, and phone projection.
• Cabin and boot: confirm the spare wheel, jack, toolkit, mats and both keys. Run a cordless car vacuum later if the cabin has stockyard dust.
• Fluids and battery: look for leaks under the car and check the battery date.
• Delivery note: sign only after all of the above, and note any defect in writing.

Once home, a fitted cover keeps festive dust and bird droppings off fresh paint, for example this Tata Nexon car cover. Watch our quick tips on Autofy reels.

Is GST 2.0 good for buyers? A balanced view

Key takeaways

• On-road price is ex-showroom plus RTO, insurance, TCS (above Rs 10 lakh) and extras.
• Under GST 2.0, small cars pay 18%, larger ones 40%, EVs 5%, with no cess.
• Road tax depends on your state and the price slab, and slab boundaries matter.
• TCS is refundable or adjustable against your tax.

Frequently asked questions