GST Cut Car Prices India

GST 2.0 Slashes Car Prices Across India – What Buyers Need to Know

🚗 What Changed Under GST 2.0?

  • Compact cars (under 4,000 mm, petrol <1,200cc or diesel <1,500cc):
    GST reduced from 28% to 18%, leading to price drops of ₹50,000 to ₹1.29 lakh
    Example: Maruti Alto K10, Swift, Wagon-R, Baleno
    Source: OneIndia
  • Larger vehicles (above 4,000 mm or engine >1,500cc):
    Now taxed at 40% flat, down from a combined 45–50% (GST + cess)
    Example: Mahindra Thar, Toyota Fortuner, Tata Safari