What exactly changed: GST 2.0 for cars
- From 22 September 2025, India’s GST regime for passenger vehicles is simplified and revised. The Week+5V3Cars+5Car India News+5
- Cars are divided into two broad categories for GST slab determination:
- Small / sub-4-metre cars with engines up to certain capacities
- Larger / premium / luxury cars (longer or with larger engines) which earlier had higher GST + Cess burden. AutoVolte.com+5The Week+5Car India News+5
Which cars qualify for lower tax (18%) and which go to the higher slab (40%)
| Criteria | Lower slab (18%) | Higher slab (40%) |
|---|---|---|
| Length | ≤ 4,000 mm (“sub-4-metre”) The Week+1 | > 4,000 mm OR if engine size exceeds those thresholds Autocar India+2Car India News+2 |
| Engine capacity | Petrol / CNG / LPG ≤ 1,200 cc; Diesel ≤ 1,500 cc ClearTax+3Car India News+3The Week+3 | Petrol > 1,200 cc or Diesel > 1,500 cc OR other criteria pushing into higher category Autocar India+2ClearTax+2 |
| Cess | Compensation cess removed for both categories; no extra cess over the revised GST slabs for cars fitting criteria Car India News+1 | Cars in the higher slab now face flat 40% GST, with previous cess removed, so overall tax burden less than earlier combined GST + cess in many cases. Car India News+2CarDekho+2 |
How much one saves
- For sub-4m / eligible small/compact cars, the shift from ~ 28% GST + cess to 18% GST yields substantial savings. Depending on model/variant, savings range from ₹30,000 to over ₹1,10,000 or more. Car India News+3V3Cars+3AutoVolte.com+3
- For larger or premium SUVs/cars that earlier had high tax + cess (sometimes reaching ~45-50 % total tax burden), moving into the new flat 40% slab reduces effective tax load. Though the percentage reduction is smaller than for small cars, savings are still meaningful. Car India News+1
Model-wise / Segment-wise examples for Maruti Suzuki
Here are some actual numbers (old vs new ex-showroom) and approximate savings for popular Maruti Suzuki models. These are model/variant examples — actual savings may differ by variant, state, and any dealer pricing. Car India News+4India Today+4V3Cars+4
| Model | Variant example | Approx Old Price (Ex-Showroom) | New Price (after GST cut) | Approx Savings |
|---|---|---|---|---|
| Ignis (1.2 petrol) | Basic / Mid trims | ∼ ₹5.85-6.89 lakh | ∼ ₹5.30-6.30 lakh or so | ~ ₹50,000-₹60,000 India Today |
| Baleno | 1.2 Alpha / Zeta etc. | ∼ ₹9.46 lakh etc. | ∼ ₹8.65 lakh etc. | ~ ₹80,000-₹90,000 depending on variant India Today |
| Fronx | 1.2 / Turbo / CNG variants | ∼ ₹7.59 lakh, 1.2 Sigma etc. | New ∼ ₹6.94 lakh etc. | ~ ₹60,000-₹70,000 India Today |
| XL6 | MHEV 1.5 variants | ∼ ₹11.94 lakh | ∼ ₹11.52 lakh etc. | ~ ₹40,000-₹50,000 savings per certain trims Autocar India+1 |
| Invicto (flagship MPV) | Hybrid / HEV / higher trims | ∼ ₹25.51 lakh ex- showroom | ~ ₹24.97 lakh etc. | ~ ₹50,000-₹60,000 off depending on variant Autocar India+1 |
Broader impact & caveats
- Impact on demand: With these price cuts, especially in the entry and compact segments, many potential buyers are likely to accelerate purchases (especially ahead of festive season). These cars become more affordable. Car India News+2autoflee+2
- Price variation by location: Ex-showroom price is just one part. On-road price depends on state-level registration fees, road tax, local levies, optional accessories. Savings in ex-showroom price will reflect in on-road but exact numbers vary by state.
- Variant matters: Some variants (especially those with additional features, heavier trims, or different engine/fuel types) may not qualify for lower engine threshold or length threshold; hence savings will differ.
- Higher slab cars still taxed: Luxury / big SUVs, premium cars with larger engines will now face flat 40% GST (without cess) — though better than earlier in some cases, they still carry a heavy tax. CarDekho+2Car India News+2
#MarutiSuzuki #CarPrices #GSTCut #MarutiPriceDrop #AffordableCars #CarNews #CarDeals #IndianCars #CarPriceCut #AutoNews #Anslation #Carrerbook