This Diwali season has seen customers waiting with bated breaths for the government’s major announcement regarding the reduction in GST. The festival season has generated a buzz since people are looking forward to small cars being priced lower.

GST Reduction Impact

Small cars currently come under the 28% GST slab with a supplementary 1% cess, thus aggregating to 29%. If the government lowers GST to 18%, the overall tax will decrease to 19%. This reduction of 10% will directly reduce car prices and benefit middle-class purchasers. For most entry-level variants, the anticipated savings could be between ₹40,000 and almost ₹60,000.

Maruti Alto K10

The Maruti Alto K10 is India’s cheapest hatchback. At 29% GST, customers pay more than ₹1.22 lakh in tax. If GST falls to 19%, tax comes down to approximately ₹80,000, providing customers with a benefit of around ₹42,000.

Maruti S-Presso

The Maruti S-Presso is another budget hatchback that gains under the new GST. Consumers pay almost ₹1.23 lakh in taxes at present. Post the potential reduction, tax will come down to ₹81,130, providing relief of around ₹42,700.

Renault Kwid

Renault Kwid is already one of the popular small cars. With the prevailing tax rate, customers pay ₹1.36 lakh as GST and cess. After the revision, the tax comes down to merely ₹89,300. This implies that customers may save ₹47,000.

Tata Tiago

Tata Tiago is one of the contenders in the under-6-lakh segment. The tax today adds ₹1.45 lakh to its cost. With GST reduction, that comes down to ₹95,000. Consumers will save almost ₹50,000 on this vehicle.

Citroen C3 and Maruti Celerio

Citroen C3 and Maruti Celerio also reflect decent price declines. Savings on Citroen C3 can be up to ₹52,500, whereas Celerio can provide relief of almost ₹53,700. Both cars become viable options for price-conscious customers.

WagonR and Eeco

Maruti WagonR and Eeco, priced under ₹6 lakh, also see major cuts. WagonR buyers may save up to ₹57,000, and Eeco customers around ₹57,900. This makes family-friendly cars more affordable during the festive season.

Maruti Ignis and Hyundai Grand i10 Nios

Premium hatchbacks like Maruti Ignis and Hyundai Grand i10 Nios bring the biggest benefits. On Ignis, savings are estimated at ₹58,500, while Hyundai’s i10 Nios could save buyers nearly ₹59,800.

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