GST on Large SUVs Over 4 Metres: New Tax Rates Explained...
In a significant move, the GST 2.0 regime has made larger cars, SUVs, and MPVs more affordable for Indian consumers. The changes in the tax structure have resulted in a decrease in on-road prices for several popular models.
The Hyundai Verna, previously priced at ₹17.58 lakh, now retails at ₹16.97 lakh. Similarly, the on-road prices for the Tata Safari, Honda City, and Toyota Innova Crysta have dropped from ₹27.44 lakh, ₹16.65 lakh, and ₹27.08 lakh to ₹26.49 lakh, ₹16.08 lakh, and ₹26.15 lakh, respectively.
The Kia Seltos, Honda Elevate, and Maruti Grand Vitara have also seen a price decrease, with the on-road prices now standing at ₹19.85 lakh, ₹16.15 lakh, and ₹19.97 lakh respectively.
The on-road prices for the Toyota Fortuner and Tata Harrier have also been reduced, now selling at ₹43.18 lakh and ₹25.77 lakh respectively.
Mid-size and larger cars with petrol engines between 1,200cc and 1,500cc are now taxed at a flat 40%, while those with diesel engines over 1,500cc fall into the same category. This change has led to a decrease in the effective tax rate for these vehicles.
However, the suspected prices for cars over 4 meters in length under the new GST regime are not explicitly stated in the search results provided. No specific GST price or rate for such cars is mentioned in the sources.
The changes in GST could potentially slow the growth of luxury EVs in India, as these vehicles are now slotted in the 40% slab. Luxury EVs such as Tesla and BYD could feel pressure due to this new tax structure.
On the other hand, the increased GST on motorcycles above 350cc could impact motorcycle manufacturers like Royal Enfield and Bajaj Auto.
The on-road prices of bigger vehicles should see slight relief due to the changes in GST. The on-road prices for the Mahindra XUV700, Mahindra Scorpio N, and Volkswagen Virtus have decreased from ₹25.14 lakh, ₹25.62 lakh, and ₹19.40 lakh to ₹24.27 lakh, ₹24.74 lakh, and ₹18.73 lakh respectively.
The GST rate for small cars and two-wheelers has been reduced, but specific information about the prices of the Tata Safari, Hyundai Creta, Volkswagen Virtus 2026, Jeep Compass, or Tata Harrier are not available in this paragraph.
Previously, all passenger cars had a GST rate of 28%, with a cess ranging from 1% to 22%. Under GST 2.0, the cess has been removed, and these cars now fall into the 40% luxury slab.
These changes in the GST regime are expected to have a significant impact on the Indian automobile market, making larger vehicles more affordable and potentially slowing the growth of luxury EVs.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Budget discrepancy jeopardizes highway projects' financial support
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
- Feeling disoriented or perplexed.
