GST 2.0: ₹3.49L price cuts on Tata, Mahindra, Toyota SUVs
What's the story
India's recent Goods and Services Tax (GST) reforms have led to major price cuts on popular SUVs and cars from brands such as Tata, Hyundai, and Toyota. The new tax structure has classified small cars under an 18% slab, while larger vehicles are taxed at 40%. This means you can save a lot on models like the Toyota Fortuner, Tata Nexon, and Mahindra XUV700, among others.
Tax restructuring
GST reforms and their impact on automobile sector
The Indian government has introduced major GST reforms, simplifying the tax structure into two main slabs of 5% and 18%. A separate slab of 40% is there for luxury and sin goods. Earlier, automobiles were taxed at a rate of 28% plus an additional cess between 1%-22%. Now, they fall under either the 18% or the new luxury vehicle tax slab without any cess.
Manufacturer response
Price cuts by Tata and Mahindra
In response to the GST reforms, several leading automakers have announced major price cuts on their vehicles. Tata Motors will reduce prices on its Nexon (up to ₹1.55 lakh), Safari (₹1.45 lakh), Harrier (₹1.4 lakh), Punch (₹85,000), and Curvv (₹65,000). Mahindra & Mahindra will cut prices of Bolero/Neo (up to ₹1.27 lakh), XUV3XO Petrol/Diesel variants by up to ₹1.56 lakh, and Thar 2WD by ₹1.35 lakh, and Thar 4WD by ₹1.01 lakh.
Additional reductions
Toyota will reduce prices of Fortuner, and other models
Toyota has announced major price cuts on its Fortuner (up to ₹3.49 lakh), Legender (up to ₹3.34 lakh), and Hyryder models (up to ₹1.1 lakh). Hyundai will reduce prices of VENUE (up to ₹1.23 lakh), VENUE N-Line (₹1.19 lakh), and CRETA models by up to ₹72,000 each, among others Honda will cut the prices of Elevate by up to ₹58,000 under the new GST regime from September 22 onward.
Other reductions
Check out Kia and SKODA's price reduction
JSW MG Motor will reduce prices of Astor (up to ₹54,000), Hector (₹1.49 lakh), and Gloster models (₹3.04 lakh). Kia will cut prices of Syros (up to ₹1.86 lakh), Sonet (₹1.64 lakh), and Seltos models by up to ₹75,000, among others SKODA will reduce prices of Kodiaq models by up to ₹3.3 lakh, as well as Kushaq and Kylaq by ₹66,000 and ₹1.19 lakh, respectively.