Nissan Magnite: Festival time is always the ideal time for Indian car buyers. Discounts and offers bring prices within reach, and now an impending GST reduction has further pushed people into a tizzy. The government has made a statement during Diwali that GST can be cut. This action can reduce prices directly and make SUVs such as Nissan Magnite and Skoda Kushaq even more appealing to middle-class families.
Current Tax on Cars
Small cars are burdened with a high tax rate at the moment. The pattern consists of 28% GST plus 1% cess, totaling 29%. For instance, if the ex-factory cost of a car is ₹5 lakh, then the tax comes out to ₹1.45 lakh. This raises the overall price to ₹6.45 lakh. If GST comes down to 18% with 1% cess, then the tax comes to 19% total. That can reduce the price to ₹5.90 lakh, with the savings for buyers of almost ₹55,000. A more expensive car at ₹10 lakh could offer savings of more than ₹1.10 lakh under identical cuts.
Nissan Magnite
Nissan Magnite is one of the cheapest compact SUVs in India. Its current ex-showroom price is ₹6.14 lakh. Currently, it levies 29% tax so that buyers have to pay ₹1,78,060 as GST and cess. If the new rate goes down to 19%, the tax is cut down to ₹1,16,660. In this situation, buyers are able to save approximately ₹61,400 on the Magnite. That will make it an even more affordable option for price-conscious SUV enthusiasts.
Skoda Kushaq
Skoda Kushaq is also in the budget SUV segment. Its current base ex-showroom price is ₹8.25 lakh. Buyers pay ₹2,39,249 as GST and cess at 29%. If the tax is reduced to 19%, the price comes down to ₹1,56,750. This implies buyers save almost ₹82,499 on the Kushaq. Such a deep rate reduction will definitely attract more customers during the festive season.
How GST Cut Helps Buyers
If the government seals the reduction from 28% to 18%, middle-class households will be the largest beneficiaries. Subcompact SUVs such as Magnite and Kushaq will fall into easier affordability. ₹60,000 to ₹80,000 savings are a huge chunk of money for a new car buyer. With festival season discounts already being offered, this move can further push sales and provide consumers with the best value.
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