GST 2.0 live: Here's how much you can save on India's top-selling cars

Buyers can save ₹50,000 to over ₹2 lakh, depending on the model. Check which cars are cheaper

India’s GST 2.0 comes into effect on Monday, simplifying the Goods and Services Tax structure and bringing notable relief for car buyers. The overhaul reduces tax slabs to 5 per cent for essentials, 18 per cent for most goods, and 40 per cent for luxury or sin items. Crucially for the automotive sector, it removes the compensation cess previously levied on vehicles (1–22 per cent on top of the 28 per cent GST), lowering ex-showroom prices just ahead of the festival season.

 

According to the Press Information Bureau (PIB), small cars and sub-4-metre vehicles (petrol/CNG/LPG up to 1,200cc or diesel up to 1,500cc) now attract 18 per cent GST, down from effective rates of 29 per cent. Mid-size cars, SUVs, hybrids, and luxury vehicles shift to 40 per cent GST, down from 43–50 per cent. Electric vehicles remain at 5 per cent to promote green mobility, while imported cars may see mixed impacts due to customs duties.

GST cut on small cars

The impact is immediate: ex-showroom prices could drop by Rs 50,000 to over Rs 2 lakh, depending on the model.

 

• Maruti Suzuki WagonR: Rs 79,600 off – perfect for first-time buyers. 
• Maruti Suzuki Swift: Rs 84,600 off – reduces total ownership cost by 5–7 per cent. 
• Maruti Suzuki Baleno: Rs 86,100 off – ideal for families seeking premium features. 
• Maruti Suzuki Brezza: Rs 112,700 off – big savings on diesel variants. 
• Tata Nexon: Rs 155,000 off – lowers premium over rivals like Brezza. 
• Hyundai Creta: Rs 240,000 off on higher trims – substantial relief on a mid-size SUV. 
• Mahindra Scorpio N: Rs 145,000 off – rugged SUV becomes more attainable.

 

GST cut on luxury cars

For high-end buyers, the 40 per cent GST slab offers substantial reductions:

 

• Mercedes-Benz GLA: Rs 400,000 off – entry luxury becomes more accessible. 
• BMW X1: Rs 13,60,000 off – high-end SUV sees massive savings. 
• Toyota Fortuner: Rs 349,000 off – iconic off-roader more attainable. 
• Toyota Innova Crysta: Rs 180,000 off – premium MPV gets relief for families or commercial use. 
• Mahindra XUV700: Rs 200,000 off – feature-packed mid-size SUV becomes more affordable. 
• Mahindra Thar: Rs 150,000 off – adventure-focused SUV sees lower entry costs. 
• Hyundai Tucson: Rs 250,000 off – premium import alternative becomes appealing.

Public reaction and online trends

Online searches spiked for queries such as “GST 2.0 car price cuts”, “cheaper cars after GST”, and brand-specific reductions like “Maruti Suzuki GST cut savings”. On X, buyers expressed excitement over affordability, though some note that dealers have not fully passed on benefits. Overall sentiment is positive, with expectations of combining GST cuts with festive discounts during Navratri and Diwali.

 

For buyers

 

Savings potential: Buyers can save 5–10 per cent on ex-showroom prices, reducing down payments, EMIs, and registration fees. A Rs 10 lakh car could save Rs 50,000–Rs 1 lakh upfront. 

Timing advice: Purchase now before festivsl inventory shortages. Compare on-road prices across dealers.

Long-term view: Lower taxes may improve resale value and reduce total cost of ownership; factor in unchanged insurance and fuel costs. 

Caveats: Prices are Delhi ex-showroom; EVs remain the most tax-efficient for eco-conscious buyers.

 

GST 2.0 eases household budgets, boosts auto demand, and makes owning a car more affordable across income segments.