Due to the change in GST slab, the prices of many popular cars are going to decrease. If you are going to buy a car now, then wait. When the new GST rates will be implemented from September 22, the prices of cars will decrease significantly. The GST Council has reduced the GST rate on most small and medium size cars from 28 percent to 18 percent. That is, the GST rate is being reduced by 10 percent directly. However, luxury cars will be taxed at the rate of 40 percent. But even after this increase, the total tax on luxury cars will be less compared to the current system.

Current Tax on Cars

Right now, small petrol cars with engines up to 1,200 cc and less than 4 meters long pay 28% GST + 1% cess. Small diesel cars with engines over 1,500 cc and less than 4 meters long pay 28% GST + 3% cess, total 31% tax. Most cars except electric vehicles pay 28% GST, but the cess varies, so total tax is different.

SUVs with engines over 1,500 cc and longer than 4 meters are taxed 50% now, which includes 28% GST + 22% cess.

Prices of Popular Cars to Decrease

  1. Maruti Suzuki Alto K10 – Price may drop from Rs 4.23 lakh to Rs 3.81 lakh.
  2. Tata Nexon – Price may reduce by around Rs 80,000.
  3. Maruti Suzuki Swift & Dzire – Price may drop by around Rs 60,000.
  4. Tata Tiago – Price may come down from Rs 5.65 lakh to Rs 5.15 lakh.
  5. Hyundai Grand i10 – Price may drop from Rs 5.98 lakh to Rs 5.51 lakh.
  6. Maruti Suzuki S-Presso – Price may fall from Rs 4.26 lakh to Rs 3.83 lakh.
  7. Renault Kwid – Price may reduce by around Rs 40,000.
  8. Hyundai Creta – Tax will now be 40% instead of 43%, price will decrease slightly.
  9. Mahindra Scorpio – Tax will reduce to 40%, price will drop.
  10. Toyota Innova Crysta – Tax will now be 40%, price will reduce.
  11. Mahindra Thar – Tax will be 40% under new GST, price will decrease.