The government’s GST reforms will start from September 22. The GST Council has changed the GST rates on 453 products, including everyday items, cars, ACs, fridges, and TVs. Out of these, the GST has decreased on 413 products and increased on only 40. This is good news for people planning to buy a car or a luxury car during Navratri, Dussehra, and Diwali.
After the reform, small cars will have lower GST, and luxury cars will also get relief. The central government has reduced the GST slabs from four to two: 5% and 18%.
Among the goods with lower GST, 295 essential products that had 12% GST earlier will now have 5% or 0% GST. Luxury goods will have 40% GST. This change will help people save money and is expected to increase demand.
Luxury Cars Can Become Cheaper by Up to Rs 26 Lakh
Earlier, luxury and big cars had 28% GST and 22% cess. Buyers paid up to 50% tax on these cars. Now, GST on luxury and big cars (engine over 1500 cc or length over 4 meters) is 40%, and the cess has been removed. This means buyers can save 8% to 10% on these cars.
For example, the BMW X1 (base model) costs Rs 51.5 lakh and the top model Rs 55 lakh. With the new GST, buyers can save Rs 5.15–5.5 lakh.
Example Prices After GST Change:
- Mahindra Scorpio: 14–17.7 lakh → 13–16.5 lakh
- Tata Safari: 15.5–27.4 lakh → 14.5–25.6 lakh
- Toyota Fortuner: 36–52.34 lakh → 33.7–48.8 lakh
- BMW X1: 51.5 lakh → 46.3 lakh
- Mercedes-Benz GLA: 50.5 lakh → 45.45 lakh
- Porsche 911: 2.0 crore → 1.8 crore
- BMW X7: 1.3 crore → 1.2 crore
- Audi Q5: 66.9 lakh → 59.85 lakh
- BMW XM: 2.60 crore → 2.34 crore
Small Cars Will Also Become Cheaper
Currently, small cars have 28% GST plus cess. Under the new tax system, GST on small cars is reduced to 18%, and cess is removed.
For example, the Maruti Wagon R (base model) costs Rs 5.79 lakh ex-showroom Delhi. After the new GST, the price may fall to Rs 5.12–5.19 lakh, saving around Rs 60–67 thousand.
