Every vehicle in Gujarat has to pay road tax, a state tax collected for the use and maintenance of public roads. The government uses the revenue generated to build and repair highways, improve traffic systems and support transport infrastructure in the state.
Since road tax is a state law, Gujarat’s rules and rates differ from those of the rest of India. For vehicle owners in Gujarat, knowing how this tax is calculated, the rates for different types of vehicles and the payment options is essential.
In this guide, we will take you through everything about road tax in Gujarat — from the basis of calculation to the current rates, payment options and more.
What is Road Tax and Why is it Important?
In India, the central and individual state governments are responsible for collecting road taxes, but it’s a state-driven levy. So if you buy or register a vehicle in Gujarat, you must pay road tax directly to the Transport Department of the Government of Gujarat as per their rules.
Broadly, road tax has two components:
- Central Government: A portion of the national tax goes into the Central Road Fund (CRF). These funds are used for building and maintaining national highways, ensuring better interstate connectivity.
- State Government: Each state decides its tax structure, including lifetime or recurring motor vehicle tax, passenger and goods tax, VAT and toll charges. In Gujarat, the structure is value-based, where different vehicles fall under varying slabs. If you are shifting to Gujarat, you must re-register your vehicle and clear Gujarat road tax within the specified period.
Importance of Road Tax
Paying road tax is a legal formality and benefits both the individual and the state:
- Supporting Road Safety and Public Services: The funds from road tax are not limited to road construction—they also contribute to road safety measures. The states use these collections for road construction, maintenance, safety, and emergency services.
- Infrastructure Development and Maintenance: Gujarat has a massive road network of over 19,000 km of State Highways and over 30,000 km of Panchayat roads. The road tax levied by the Government of Gujarat is utilised to maintain and construct newer roads within the state, adding to the road network and facilitating a seamless flow of vehicles.
- Legal Compliance: Paying your road tax in Gujarat isn’t just a formality; it’s a legal obligation that helps keep the roads you drive functional and safe. Non-payment can result in penalties and legal issues.
Road Tax Rules in Gujarat
In Gujarat, road tax is collected by the Transport Department under the provisions of the Gujarat Motor Vehicles Tax Act, 1989. This tax is compulsory for every vehicle owner, whether the vehicle is for private use or commercial operations.
Applicability of Road Tax in Gujarat
The rates of the road tax differ according to the following categories of vehicles:
- Two-Wheelers: The Gujarat road tax system has a simplified tax structure for two-wheelers. The tax rates vary based on the engine capacity, vehicle type and age of the vehicle.
- Three-Wheelers: Auto rickshaws and other three-wheelers must pay road tax according to their seating capacity. For seating capacity up to 3, the tax is 2.5% of the total cost of the vehicle, and for three or more, it is 6% of the total cost.
- Four-Wheelers (Private Use): Private cars are taxed based on the cost of the vehicle, with the tax being 6% of the total vehicle cost. Additionally, most imported cars in Gujarat are required to pay double the road tax amount, except for vehicles imported for individuals with disabilities and goods vehicles weighing up to 7500 kg.
- Commercial Vehicles: This includes taxis, buses, and goods transport vehicles like trucks and delivery vans. These vehicles must pay 6% – 12% of the vehicle cost as their road tax.
- Transfer/Resale of Vehicles: When you sell or transfer a car that already has a lump sum road tax paid at the time of registration, you must pay an extra transfer tax. If the vehicle is under 8 years old, the new owner must pay 15% of the original tax, and if it is over 8 years old, the new owner has to pay 1% (or ₹100, whichever is higher).
Factors Affecting Road Tax Rates
Road tax rates depend on various factors, as discussed below:
- Vehicle Type: Different categories like two-wheelers, four-wheelers, auto-rickshaws, buses, tractors, and goods vehicles are taxed differently.
- Purpose of Use: Private (non-transport) vehicles usually pay a one-time lump sum tax, while commercial/passenger vehicles (buses, taxis, and trucks) attract recurring or periodic tax.
- Vehicle Age: Older vehicles generally attract lower tax, reflecting their depreciation, while newer vehicles are taxed at a higher rate to account for their retained value. Vehicles older than 15 years also have to pay the green tax.
- Vehicle Cost: High-end and expensive cars are subject to higher tax rates.
- Fuel Type: Diesel cars often have increased emissions and, therefore, an increased road tax. On the other hand, rebates and exemptions are usually given for electric vehicles (EVs). For example, the Gujarat government has reduced the tax from 6% to 1% on electric vehicles (EVs). This rebate is valid until 31st March, 2026.
Lifetime Tax, Green Tax, and Exemptions
- Lifetime Tax: Lifetime tax is a road tax paid once while registering a private vehicle. Vehicles purchased for private use are obligated to pay a lifetime tax. While transporting vehicles like buses, taxis, trucks, etc., pay their road taxes quarterly or half-yearly.
- Green Tax: Green tax, or pollution tax, is paid for all commodities contributing to pollution. Both private vehicles (more than 15 years old) and commercial vehicles (more than 8 years old) are obligated to pay this tax if they run on petrol or diesel.
- Exemptions: In Gujarat, only tractors for agricultural use, auto rickshaws carrying three passengers only and invalid carriages (uw up to 250 kgs) are exempted from paying the road tax. Full or partial exemptions are also available for government cars owned by central or state government departments, special category vehicles, including ambulances, and vehicles modified for people with disabilities.
How to Calculate Road Tax in Gujarat?
Road tax is not just a fixed percentage but varies according to various factors discussed below:
Parameters Used for Road Tax Calculation
The table below discusses the standard parameters used for road tax calculation:
| Parameter | What It Means |
| Engine Capacity | Vehicles with larger engines pay higher tax; smaller engines are taxed less. |
| Vehicle Type | Tax differs for two-wheelers, three-wheelers, cars, buses, and commercial vehicles. |
| Weight of Vehicle | Heavier vehicles like SUVs, trucks, and goods carriers pay higher tax based on weight slabs. |
| Place of Registration | Road taxes are different for different states. |
| Fuel Type | Petrol, diesel, CNG, and electric vehicles are treated differently; electric vehicles often get concessions. |
| Age of Vehicle | New vehicles pay full lump sum tax; resale/transfer tax depends on age (≤8 years: 15% of original tax, >8 years: 1% of original tax or ₹100). |
| Imported vs Domestic | Imported vehicles usually pay double the tax, except for small goods vehicles or lightweight invalid carriages. |
Sample Road Tax Calculation for Different Vehicles
New private non-transport four-wheelers registered in Gujarat are subject to a flat rate tax of 6%. Typically, electric cars are either free or have reduced fees. Check out the table below for a detailed overview:
| Vehicle Type | Ex-Showroom Price | Tax Rate | Road Tax Payable |
| Hatchback (Petrol) | ₹6,00,000 | 6% | ₹36,000 |
| SUV (Diesel) | ₹15,00,000 | 6% | ₹90,000 |
| Electric Car | ₹12,00,000 | 1% | ₹12,000 |
Note: These are sample figures. Actual road tax may vary depending on the RTO location, latest notifications, and specific vehicle configuration.
How to Pay Road Tax in Gujarat?
The various available road tax payment processes are listed below:
Online Payment Process
Online procedures make road tax payment a lot easier and more convenient. Here are the steps to follow:
Step 1: Visit the Portal: Go to Parivahan Sewa and select the “Vahan Services” section.
Step 2: Enter Vehicle Details: Provide your vehicle registration number, select Gujarat as the state, and choose the relevant RTO.
Step 3: Select Tax Payment: Click “Online Services” and “Pay Vehicle Tax”.
Step 4: Validate Vehicle: Enter the last five digits of your vehicle’s chassis number and click “Validate Regn_no/Chasi_no”.
Step 5: OTP Verification: Enter the OTP sent to your registered mobile number, and click submit.
Step 6: Update Insurance: Fill in your vehicle insurance details and review the fee panel.
Step 7: Make Payment: Proceed to pay the applicable road tax online.
Step 8: Download Receipt: Once payment is successful, download the receipt for your records.
Step 9: RTO Processing: Your application will be automatically forwarded to the respective RTO for further processing.
Offline Payment Process
You can also pay your Gujarat road tax offline by visiting your nearest RTO. Follow these simple steps:
Step 1: Visit the RTO: Go to the Regional Transport Office (RTO) corresponding to your vehicle’s registration.
Step 2: Fill Out the Form: Complete the road tax payment form provided by the RTO officials.
Step 3: Submit Payment: Submit the completed form along with the applicable road tax. Payment can typically be made via cash, demand draft, or cheque.
Documents Required for Road Tax Payment
- Vehicle Invoice: Original purchase invoice
- Registration Certificate (RC): Vehicle RC issued by RTO
- No Objection Certificate (NOC): For out-of-state vehicles
- Vehicle Insurance: Valid policy copy
- Form KMVT-14: Required for out-of-state vehicles
- Proof of Address: Aadhaar, Passport, Voter ID, Ration Card, Rental Agreement, or Utility Bill
Penalties for Late Payment of Road Tax in Gujarat
As per the Motor Vehicle Act, paying road tax on time is mandatory. Delays or non-payments can attract heavy fines, which vary depending on the delay period and the number of offences. A short grace period (usually 15 days) may be given to clear dues.
If a vehicle owner fails to pay the required road tax, the following penalty is imposed:
| Road Tax Payment Postponed By | Penalty Charged |
| More than 3 months | 18% of the total road tax owed |
If your road tax is ₹10,000 and payment is delayed by over three months, you must pay ₹11,800, including the penalty.
Refunds and Road Tax Transfer Rules in Gujarat
Many individuals don’t realise that claiming a refund for road tax is possible.
Conditions for Road Tax Refund
- Scrapping or deregistration of the vehicle.
- Relocation to another state, where the vehicle is re-registered in the new state.
Procedure for Applying for a Road Tax Refund/Transfer
Step 1: Re-register the vehicle in the new state (if relocated).
Step 2: Collect documents: smart card copy, chassis imprint, NOC, valid insurance, road tax receipts (old & new states), Form 28, Form 16, and address proof.
Step 3: Submit a request letter with bank and address details to the RTO.
Step 4: RTO verifies and processes the application.
Step 5: The refund/transfer amount is issued via cheque to the owner’s account.
Comparison: Road Tax in Gujarat vs Other States
The table provides a comparison of taxes of different states, based on a private car with the price range of up to ₹10 lakh and the corresponding electric vehicle (EV) tax status:
| State | Road Tax for Car (₹10L) | Electric Vehicle Tax |
| Gujarat | ₹60,000 (6%) | 1% of the Vehicle Cost |
| Punjab | ₹95,000 – ₹1,30,000 (9.5% – 13%) | Exempted (100%) |
| Delhi | ₹70,000 – ₹87,500 (7% – 8.75%) | Exempted (100%) |
| Maharashtra | ₹1,10,000 – ₹1,30,000 (11–13%) | Exempted (100%) |
Note: Road tax rates are indicative and may vary based on vehicle type, fuel, weight, and periodic RTO updates. Always verify with the Gujarat RTO or the official Parivahan portal for precise calculations.
Road tax in Gujarat plays a vital role in funding road infrastructure and ensuring vehicle compliance. With online and offline payment options, the process has become more convenient for vehicle owners.
However, timely payment is essential to avoid penalties, and refunds or transfers are available under specific conditions. Gujarat vehicle owners can ensure a smooth and hassle-free tax payment experience by staying informed and keeping the required documents ready.
FAQs About Road Tax in Gujarat
Can I check the validity of my vehicle with the registration number in Gujarat?
You can check the validity of your vehicle with the registration number on the official Parivahan website. Go to “Know your vehicle details”, input the information asked, and then check.
Can I drive a vehicle from another state in Gujarat?
Yes, you can drive a vehicle registered in another state in Gujarat for up to 12 months without re-registering it. However, suppose you are a resident of Gujarat and will be staying there for more than a year. In that case, you must legally re-register your vehicle in the state and obtain a No Objection Certificate (NOC) from the original RTO.
Can we cancel our car tax in Gujarat?
You cannot cancel your car’s road tax unless you meet specific criteria, such as selling the vehicle, among others.
Is the road tax in Gujarat a one-time payment?
In Gujarat, the road tax is primarily a one-time payment for private, non-commercial vehicles, charged at initial registration. The amount is calculated as a percentage of the vehicle’s ex-showroom price.
I am looking to resell my vehicle. What will be the applicable transfer tax?
When a vehicle for which a lump-sum tax has been paid is transferred:
• If up to 8 years old: 15% of the lump-sum tax paid is leviable as “transfer tax”.
• If more than 8 years old: 1% of lump-sum tax paid (or ₹100, whichever is higher).
