GST 2.0: Lexus cars get cheaper by a whopping ₹20L
What's the story
Lexus has announced a major price cut across its entire vehicle lineup in India. The company will be passing on the benefits of the recent Goods and Services Tax (GST) rate revision to its customers. The new pricing will come into effect from September 22, 2025, just in time for the festive season. The move is aimed at enhancing accessibility to luxury mobility.
Leadership perspective
Lexus India thanks government for GST rate revision
Hikaru Ikeuchi, President of Lexus India, expressed gratitude toward the Government of India for the GST rate revision. He said, "We sincerely thank the Government of India for this historic reform and are delighted to extend the full benefit of the GST rate reduction to our valued customers." The executive also emphasized how this move would improve accessibility and boost confidence in luxury mobility.
Price cuts
Luxury carmaker's entire lineup sees substantial price cuts
The price cuts for Lexus vehicles in India are substantial. The ES 300h will be cheaper by up to ₹1,47,000 while the NX 350h will see a reduction of up to ₹1,58,000. The RX 350h and RX 500h models will be cheaper by up to ₹2,10,000 and ₹2,58,000, respectively. Even the LM 350h and LX 500d models will see major price cuts of up to ₹5,77,000 and a whopping ₹20,80,000, respectively.
Tax reform
Price cuts follow the 56th GST Council meeting
The price cuts come after the 56th GST Council meeting on September 3, 2025. During this meeting, Finance Minister Nirmala Sitharaman announced GST 2.0, a major reform aimed at making vehicles more affordable and simplifying tax rates in the automotive sector. Under this new framework, small cars under four meters long with engines up to 1,200cc (petrol) or 1,500cc (diesel) will now attract an 18% GST without any additional cess.
Tax structure
Major reforms in automotive sector under GST '2.0'
Larger vehicles with engines over 1.2-liter (petrol) or 1.5-liter (diesel), and motorcycles over 350cc, will now attract a higher GST rate of 40%. For the agriculture sector, GST on tractors, harvesters, threshers, fodder balers, and other farm machinery has been reduced from 12% to 5%. All auto components will now attract a uniform GST of 18%, simplifying the overall tax structure in India.