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Different states levy road tax in different ways, but with the same purpose. The main use of the amount collected from road taxes is to build and maintain the road transport network within the state. The calculation of the road tax in Gujarat is fairly simple. It is a flat 6% amount on the ex-showroom cost of the vehicle for all four-wheelers, commercial or private. For two-wheelers, it is 6% of the cost for vehicles under 8 years in age and 15% for vehicles that are older.


The state has one of the heaviest penalties for defaulters, and you may end up paying 18% extra if you do not pay the road tax in Gujarat on time.

 

Most states, such as Chhattisgarh and Maharashtra, have a road tax system that follows a progressive format. This means that the cost shall vary based on the type of vehicle you have (two or four-wheeler), its engine capacity, its stature (private or commercial) and its price. This creates a balancing act between citizens buying cars in an economical and eco-friendly manner, as the tax incentives make sure they do not flood the streets with gas guzzlers with no consequence.

 

However, road tax in Gujarat has a much more simple process, with a flat tax rate of 6% on four-wheelers and a set of tax slabs for two-wheelers which vary as per the vehicle’s age.

Who Levies Road Tax & Why is it State Level?

The State Government levies road tax for the maintenance and development of roads on a state level. Hence, you shall have to pay RTO tax to the Gujarat Government if you purchase a new motor vehicle.

 

Whereas, the Central Government imposes customs duty, GST, central excise, etc. and is responsible for maintaining national highways.

How to Pay Road Tax in Gujarat Online?

You can pay your Gujarat road tax online or offline. In order to pay your Gujarat road tax offline, you can simply visit any of the RTOs in the state to accomplish this. To make your Gujarat road tax online payment, follow these steps:

 

  • Step 1: Visit the official VAHAN portal (https://vahan.nic.in/nrservices/faces/user/citizen/citizenlogin.xhtml

  • Step 2: You will be prompted to fill in your login details and your vehicle registration number to proceed with your Gujarat road tax online payment. 

  • Step 3: Upon submitting the form, you can proceed to complete the payment using the available payment options. 

  • Step 4: Once you have completed this, you will receive a confirmation via SMS that your Gujarat road tax online payment has been completed.

 

There are a number of benefits to paying your road tax online. For starters, it is much more convenient as you can complete it from the comfort of your home. Secondly, RTOs can be crowded, and hence, you may face difficulties in getting your work done. From home, you can simply log in at a time of your convenience and complete your payment hassle-free.

How is Road Tax Calculated in Gujarat?

Road tax typically takes into account a multitude of factors such as the type, capacity, age, and weight of a vehicle. However, in Gujarat, these processes are simplified, and there exists a flat tax rate.

 

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Two-Wheeler Road Tax in Gujarat

Unlike the four-wheeler department, the two-wheeler RTO tax in Gujarat does vary based on the age of your vehicle, with bands set at 0, 8 and 15 years. Here is a table to exemplify and help you keep track of the road tax you are required to pay in Gujarat:

Vehicle Age

Tax Amount

Between 0 - 8 Years old

6% of the total cost of the vehicle

8 years or Older

15% of the total cost of the vehicle

15 Years or older

1% of the total cost of the vehicle.

Four-Wheeler Road Tax in Gujarat

In Gujarat, the road tax rates are more standardised, meaning most people are paying a similar amount of road tax. This makes the task of authorities keeping track of tax payments easier, and makes it more convenient for customers. However, the absence of a progressive road tax means individuals have no reason to let go of their older vehicles that perhaps do not meet PUC mandates, increasing the overall pollution levels.

 

In this sense, the Gujarat road tax for cars and for second-hand cars is the same. As part of the vehicle tax in Gujarat, all private vehicles have to pay a fixed tax of 6% of the cost of the vehicle.

Commercial Vehicle road tax in Gujarat

As a result of the simplistic struct of the rto tax in Gujarat, there is but one clause to be mentioned here. The road tax for all commercial vehicles in Gujarat is a flat rate of 6%. This applies to taxis, cars and tempo travellers as well.

Penalty for Non-Payment of Road Taxes in Gujarat

Previously, those who had not paid their road tax in Gujarat were required to make interest payments on their tax. In 2016, the state government waived this interest fee (you still have to pay the penalty) and has offered a one-time settlement scheme for those who wish to clear all their unpaid vehicle taxes. This scheme was only available for three months. Generally, the state levies 18% on defaulters.

Wrapping it Up!

Now that you are aware of the steps to complete the online Gujarat road tax payment, you can easily pay it on time! Another solution to avoid getting penalised while driving is to have a valid motor insurance policy. Under the Motor Vehicles Act, 1988, it is mandatory to have third-party insurance to drive on public roads. So, you can go to Bajaj Markets and opt for a comprehensive bike insurance plan or car insurance for extensive protection against perils!

FAQs on Road Tax in Gujarat

Where can I pay the road tax applicable in Gujarat?

You can do so online through the state government's website or offline by visiting an RTO.

Can a vehicle registered in another state be driven in Gujarat?

Yes. You will have to take your car to a local RTO for registration and fill out some forms, including Form 20. Once you submit these forms to the RTO, you can drive your vehicle of choice without worrying about other state vehicle taxes in Gujarat.

What if I don’t pay my road tax?

The Gujarat State government levies an 18% charge on defaulters who do not pay their road taxes.

How are road taxes calculated?

Gujarat has one of the most simplistic road tax payment methods, with a flat 6% rate of the cost of the vehicle. 

What happens if my vehicle is old?

Unlike other states, Gujarat has a flat road tax, meaning the age of your vehicle will not factor into your tax amount.

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