New GST Cuts in India: Top-Selling Cars Now Cheaper by Up to ₹1.55 Lakh! #news #gst

🚗 GST Reforms Impacting Car Prices in India – What You Need to Know 🚗

In a significant move, the Indian government has announced sweeping GST reforms, leading to substantial price reductions on top-selling cars across the country. Effective from September 22, 2025, these changes are set to make vehicles more affordable for consumers.

📉 Key GST Changes Affecting Car Prices

Small Cars (Sub-4m, ≤1.2L Petrol / ≤1.5L Diesel): GST reduced from 28% to 18%

Large SUVs & Luxury Cars: GST increased to a flat 40% (previously 28% + cess)

Electric Vehicles (EVs): Maintained at 5% GST

Implementation Date: September 22, 2025

🚘 Top-Selling Cars Now More Affordable

Leading automakers have announced price cuts on their popular models:

Tata Motors:

Tiago: Up to ₹75,000 reduction

Tigor: Up to ₹80,000 reduction

Altroz: Up to ₹1.1 lakh reduction

Punch: Up to ₹85,000 reduction

Nexon: Up to ₹1.55 lakh reduction

Harrier: Up to ₹1.4 lakh reduction

Safari: Up to ₹1.45 lakh reduction

Mahindra & Mahindra:

Thar (2WD Diesel): ₹1.35 lakh reduction

Thar (4WD Diesel): ₹1.01 lakh reduction

Scorpio Classic: ₹1.01 lakh reduction

Scorpio-N: ₹1.45 lakh reduction

XUV700: ₹1.43 lakh reduction

Bolero/Neo: ₹1.27 lakh reduction

XUV300 (Petrol): ₹1.4 lakh reduction

XUV300 (Diesel): ₹1.56 lakh reduction

Renault:

Kwid: Up to ₹55,000 reduction

Triber: ₹53,695 to ₹80,195 reduction

Kiger: Up to ₹96,395 reduction

🔍 Why Are Prices Dropping?

The GST Council's decision to reduce tax rates on small cars aims to boost demand in the entry-level segment, which has been sluggish post-pandemic. By lowering the GST from 28% to 18%, the government intends to make vehicles more affordable for consumers, especially in Tier-2 and Tier-3 cities. This move is expected to spur sales during the upcoming festive season.
The Times of India

🛍️ What Does This Mean for Consumers?

Immediate Savings: Significant price reductions on popular models

Increased Affordability: Entry-level and mid-range vehicles become more accessible

Enhanced Options: Consumers can now consider higher variants or additional features within their budget

Festive Season Advantage: The price cuts align with the festive season, encouraging timely purchases

📅 Important Dates

GST Rate Implementation: September 22, 2025

Booking Recommendations: To avail of the new prices during the festive season, it's advisable to book early
🔗 Stay Updated

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