India’s Car Prices Get a Major Shake-Up with New GST Rules
In a big win for car buyers, the Indian government has simplified its GST (Goods and Services Tax) system. The new plan moves from four different tax slabs to just two: 5% and 18%. This means many popular cars are about to get a lot cheaper, as the new 18% GST is much lower than the 28% GST plus extra fees (cess) that were in place before.
Big Savings on Sub-4m SUVs
Cars under 4 meters with smaller engines will now be taxed at 18%. This is great news for models like the Tata Nexon and Mahindra XUV 3XO. Their petrol versions could see a price drop of Rs 68,000 to Rs 1.35 lakh, while the diesel versions could become cheaper by up to Rs 1.55 lakh! On the other hand, the Maruti Brezza, which has a bigger engine, will see a smaller cut.
| Model | Current Price Range (Rs Lakh) | Current GST + Cess | New GST + Cess | Expected Price Range (Rs Lakh) | Savings Up To Rs |
|---|---|---|---|---|---|
| Brezza Petrol | 8.69 – 13.98 | 45% (28% GST + 17% Cess) | 40% | 8.39 – 13.50 | 30k – 48k |
| Nexon Petrol | 8.00 – 14.70 | 29% (28% GST + 1% Cess) | 18% | 7.32 – 13.44 | 68k – 126k |
| Nexon Diesel | 10.00 – 15.60 | 31% (28% GST + 3% Cess) | 18% | 9.01 – 14.05 | 99k – 155k |
| XUV 3XO Petrol | 7.99 – 15.80 | 29% (28% GST + 1% Cess) | 18% | 7.31 – 14.45 | 68k – 135k |
| XUV 3XO Diesel | 9.99 – 14.99 | 31% (28% GST + 3% Cess) | 18% | 9.00 – 13.50 | 99k – 149k |
Hatchbacks and Premium Hatchbacks Get Cheaper
This new tax rule also brings fantastic news for the most popular hatchbacks. Cars like the Maruti Swift, Tata Tiago, and Maruti WagonR will all get significant price cuts. Even premium models will see big savings. The Hyundai i20 could be cheaper by up to Rs 1.24 lakh, and the sportier i20 N Line could see a massive drop of up to Rs 1.38 lakh.
| Hatchback | Current Price Range (Rs Lakh) | Current GST + Cess | New GST + Cess | Expected Price Range (Rs Lakh) | Savings Up To Rs |
|---|---|---|---|---|---|
| Alto K10 | 4.23 – 6.21 | 29% (28% GST + 1% Cess) | 18% | 3.76 – 5.53 | 47k – 68k |
| Tiago | 5.00 – 8.55 | 29% (28% GST + 1% Cess) | 18% | 4.45 – 7.61 | 55k – 94k |
| WagonR | 5.79 – 7.62 | 29% (28% GST + 1% Cess) | 18% | 5.15 – 6.78 | 64k – 84k |
| Swift | 6.49 – 9.65 | 29% (28% GST + 1% Cess) | 18% | 5.78 – 8.59 | 71k – 106k |
| i20 | 7.51 – 11.25 | 29% (28% GST + 1% Cess) | 18% | 6.68 – 10.01 | 83k – 124k |
| i20 N Line | 9.99 – 12.56 | 29% (28% GST + 1% Cess) | 18% | 8.89 – 11.18 | 110k – 138k |
What This Means for You
These price cuts will make buying a new car much more affordable, especially for those in the mass market. However, remember that these price drops depend on whether car makers pass on the full benefits of the GST change to customers. The government’s new rules are a great step to boost car sales, making your dream of a new car more achievable than ever.
