The new Goods and Services Tax (GST) rates, set to come into effect from Sept. 22, will make both small and large cars more affordable for consumers. The GST Council at its meeting last week reduced taxes on small cars from 28% to 18%.
After the implementation of the GST 2.0, different passenger cars, including Sport Utility Vehicles (SUVs), are set to become more affordable. Heavy price cuts are set to benefit customers looking forward to buying models like the Hyundai Creta, Kia Sonet, Skoda Kushaq, Tata Harrier, and Maruti Brezza under the new GST reforms.
For instance, the base Hyundai Creta petrol model will become cheaper by Rs 38,311, while the top diesel variant is expected to see the highest price cut of Rs 68,969.
Similarly, Kia India has also announced that it will pass on the full GST cut benefit to customers across its Internal Combustion Engine (ICE) vehicle range. Overall, savings on Kia cars vary by model, with the Sonet price reduced by up to Rs 1.64 lakh and the Syros by Rs 1.86 lakh.
With GST reduced from 45% to 40%, the Skoda Kushaq now comes with savings of up to Rs 65,828. This price cut makes the compact SUV more affordable for buyers under the new tax structure. Similarly, the Tata Harrier is expected to become cheaper by Rs 1.4 lakh under the new GST structure.
