GST 2.0 to bring massive savings on new cars
Big update: GST 2.0 kicks in from September 22, 2025, shaking up how cars are taxed across the country.
The new system brings just two main tax rates—5% and 18%—and does away with a bunch of old cesses, which means less tax on most vehicles.
However, while the GST system overall has two main rates, mid-size cars and SUVs are taxed at 40%.
Car makers like Maruti Suzuki and Hyundai have revised their prices to pass these savings straight to buyers, so you might see some tempting price drops soon.
Savings could range from ₹65,000 to ₹3.5 lakh per vehicle
With GST 2.0, small cars and two-wheelers will now be taxed at 18%, while mid-size cars and SUVs face a flat 40% GST but skip the extra cesses.
Depending on what you're eyeing, savings could range from ₹65,000 up to ₹3.5 lakh per vehicle—just in time for the festive season rush.
The goal? Make car buying simpler and more affordable for everyone.