The Mahindra XUV700 has taken the Indian car market by storm with its bold design, feature-rich cabin, and powerful engines. However, a recent claim that the XUV700 is now “tax-free” is inaccurate. Let’s delve deeper into the XUV700’s features, specifications, and the reality of car taxation in India.
XUV700: A Feature Powerhouse with a Commanding Presence
The XUV700 boasts several impressive features that make it a compelling choice for SUV buyers:
- Striking Design: The XUV700 features a muscular design with a bold grille, sleek LED headlamps, and a commanding road presence. It’s available in both 5-seater and 7-seater configurations to cater to different needs.
- Tech-Savvy Cabin: The XUV700 boasts a feature-rich cabin with a large 10.25-inch touchscreen infotainment system, a 10.5-inch digital instrument cluster, connected car features, and a panoramic sunroof (on higher variants).
- Safety First: The XUV700 prioritizes safety with features like seven airbags, electronic stability program (ESP), and advanced driver assistance systems (ADAS) like lane departure warning and automatic emergency braking (on higher variants).
- Performance Options: The XUV700 offers two engine options: a 2.0-liter turbo-petrol engine and a 2.2-liter diesel engine. Both engines deliver ample power and performance, making the XUV700 a capable highway cruiser.
Understanding Car Taxation in India
In India, all new cars are subject to Goods and Services Tax (GST) along with Compensation Cess. Here’s a breakdown:
- GST: This is a tax levied on the supply of goods and services. The current GST rate for SUVs like the XUV700 is 28%.
- Compensation Cess: This is an additional tax levied on certain categories of goods and services, including SUVs. The current Compensation Cess rate for SUVs is 22%.
Therefore, the total tax applicable to the XUV700 would be 28% GST + 22% Compensation Cess = 50%.
The Myth of a Tax-Free XUV700
The claim that the XUV700 is now tax-free is simply not true. All new XUV700s purchased will be subject to the applicable GST and Compensation Cess. It’s important to rely on official sources from Mahindra or government websites for accurate information on car taxation.
What About the Mahindra Thar (CSD)?
The Mahindra Thar (CSD) is a variant of the Thar SUV specifically sold through the Canteen Stores Department (CSD) for the Indian Armed Forces personnel. These vehicles might benefit from certain tax exemptions or concessions available to defense personnel. However, this doesn’t apply to the civilian XUV700.
So, How Much Does the XUV700 Cost?
The ex-showroom price of the XUV700 varies depending on the variant, engine, and transmission chosen. However, with the current tax structure, you can expect the on-road price to be significantly higher than the ex-showroom price due to the 50% GST and Compensation Cess.
Making an Informed Decision
The XUV700 is a feature-rich and powerful SUV with a lot to offer. However, it’s crucial to factor in the total on-road price, including taxes, before making a purchase decision. Research different variants, compare features, and take the XUV700 for a test drive to see if it aligns with your needs and budget. Remember, a car purchase is a significant investment, so do your due diligence before driving off the showroom floor.
