From Mahindra Thar to Hyundai Creta: Popular cars that become cheaper with GST 2.0

After the Rejig of Goods and Service Tax (GST) on Wednesday, which will come into force of September 22, various popular cars will see a price reduction because they are now taxed at 18 percent, a significant decrease in the existing 28 percent.

Small cars, which traditionally have been the backbone of the Indian market for passenger cars, had witnessed a delay and a shrinking market. However, a revival is expected with the new tax regime.

How would GST 2.0 benefits for the car industry?

Under the new GST policy, most small and medium-sized cars are placed in the 18 percent plate. However, luxury cars will be taxed at a rate of 40%. Even with the turnout, the luxury cars will see a reduced tax rate compared to the current regime.

According to the current regime, small gasoline rust with a maximum of 1,200 cc motor capacity and less than 4 meters attract 28% GST and 1% compensation cess. The small diesel cars with engine capacity of more than 1500 cc and less than 4 meters in length draw 28% GST and 3% CESS, resulting in a total tax incidence of 31%.

The GST rate for all cars except the electric vehicles is 28%, but the CESS rate varies and makes a difference in total tax incidence. The SUVs with a motorcycle capacity of more than 1500 cc and a size of more than 4 meters are taxed at a no less than 50% rate, including 28% GST and 22% CESS.

With the GST rate revision, the government simplified the tax system for cars.

Popular cars that became cheaper

Maruti Suzuki Alto K10: This is the most affordable car in India and one of the few 1.0-liter petrol engine propelled hatchbacks. It is popular in both private and taxi service segments. Alto K10 will see a cost reduction with the renewed GST. It is expected that a price fall from RS 4.23 Lakh (ex-showroom) to approximately RS 3.81 LAKH (ex-showroom).

Maruti Suzuki Swift & Dzrie: The two popular cars will attract a GST of 18 percent, a decrease of 28 percent. The prices of the cars will fall by approximately RS 60,000.

Hyundai Grand i10: This car is a hatchback from entry level Promising improved functions. With the GST 2.0, this 1.2-liter small hatchback becomes cheaper from RS 5.98 Lakh (ex-showroom) to approximately RS 5.51 LAKH (ex-showroom).

Maruti Suzuki S-Passo: Another affordable Maruti-Hatchback powered by a 1.0-liter engine will see a price reduction. The car, priced at 4.26 Lakh, now costs 3.83 Lakh with the change in GST rate.

Tata Tiago: The car is considered one of the safest hatchbacks at entry level in the country. The 1.2-liter engine propelled hatchback comes with a robust build quality, global NCAP 4-star safety assessment and a large number of chic functions. The car is supplied in both gasoline and gasoline CNG drivers. With the GST reduction, the Tiago is expected to be available at a lower starting price of RS 5.15 Lakh (ex-showroom) compared to RS 5.65 Lakh (ex-showroom).
Renault Kwid: The direct competitor of Maruti Suzuki Alto K10, the Renault Kwid is the only hatchback in the French company. With the renewed GST rates, the Kwid could see an estimated reduction of RS 40,000 in his sticker price.

Tata Nexon: One of the most popular and best -selling SUVs in India, Tata Nexon, which just fits the 18 percent categor in terms of engine and length, will see a considerable prize in prize. Prices for the basic model can fall with RS 80,000.

Hyundai Creta: Although Creta, one of the most popular SUVs in India, will now be below 40 percent GST Lab, it was previously taxed at 43 percent, including 28 percent GT and 15 percent stop. The price will now fall by 3 percent, which benefits consumers somewhat.

Mahindra Thar: He lifestyle SUV that is considered one of the real off-roadters on the Indian markets. It is currently taxed at 45-50 percent, depending on the variant. With the new GST regime, however, the car will now be taxed at 40 percent.

Mahindra Scorpio: . Currently, most variants of this SUV are taxed at 50 percent, including 28 percent GST and 22 percent cess. With the Cess that is being deleted, Scorpio will now attract a 40%GST.

Toyota Innova Crysta: Just like the Scorpio, the Toyota Innova Crysta attracted 28 percent GST and 22 percent cess, with the total tax at 50 percent. The popular very popular car will now be taxed at 40 percent.