From September 22, GST rates on vehicles will change. This will make small cars, sedans, SUVs, and MPVs cheaper. The prices of Maruti Swift, Volkswagen Virtus, Maruti Brezza, Mahindra XUV700, and Toyota Innova Crysta will also go down. Auto experts say some cars may get up to 9% cheaper.
Crisil Intelligence said the base model of Maruti WagonR will get cheaper by 8.6% and its new price will be ₹5.29 lakh (ex-showroom). The price of Maruti Swift will also fall by almost the same. After this cut, its price will be ₹5.93 lakh (ex-showroom). The Dzire will also get cheaper, and its new price will be ₹6.25 lakh (ex-showroom).
New Prices of Creta, Brezza, Virtus, XUV700 and Innova
The prices of Creta, Brezza, and Virtus may fall by 3.6%. After this, the base model of Creta will cost ₹10.71 lakh, Brezza ₹8.37 lakh, and Virtus ₹11.14 lakh (all ex-showroom). The prices of Mahindra XUV700 and Toyota Innova Crysta base models may also fall by up to 6.8%.
As per Crisil Intelligence, the new ex-showroom price of Mahindra XUV700 can start from ₹13.51 lakh. Toyota Innova Crysta may now start from ₹18.64 lakh. In GST 2.0, all petrol, diesel, and CNG cars (ICE cars) will come under two slabs — 18% and 40%. Small cars like hatchbacks, compact sedans, and compact SUVs will come under the 18% slab. Large cars will come under the 40% slab.
GST 2.0 Brings Major Tax Change
Earlier, GST on all ICE cars was 28%, plus a compensation cess of 1–22% depending on car type, size, and engine. Small hatchbacks had low cess, while SUVs and luxury cars had higher cess. This made cars costlier in India compared to abroad. Now in GST 2.0, the government has removed this cess. This means only tax will be charged.
The GST rate on electric cars has not changed. They will continue at 5%. Hydrogen fuel cell cars will now be taxed at 5% instead of 12%. Experts say GST 2.0 will reduce prices of both small and big cars. This is good news for buyers. The new rates will apply from September 22, the first day of Sharadiya Navratri.