New GST Rates for Cars: From Swift To Wagon R - Check Full List Of Models Getting Cheaper

Prospective car buyers across India have reason to cheer, with the Goods and Services Tax (GST) Council announcing a significant reduction in tax rates for passenger vehicles (PVs). The revised structure, aimed at boosting demand in the auto sector, will lower prices across multiple categories—from budget hatchbacks to premium SUVs.

Entry-level hatchbacks get affordable

Small cars remain the backbone of India’s automobile market, and this segment is set to get the maximum benefit. GST on hatchbacks has been cut from 28% to 18%, making popular models more accessible for first-time buyers and families.

Buyers of the Maruti Suzuki Alto K10, WagonR, Swift, and Celerio will notice reduced sticker prices, as will those opting for the Hyundai Grand i10 Nios and i20, Tata Tiago, and Renault Kwid. With these models already commanding strong demand, the price cut could trigger fresh momentum in entry-level car sales.

Also Read: GST 2.0 Cuts Vehicle Prices: Auto Industry Hails ‘Game-Changing’ Reform | Republic World

Sedans see a price trim

The GST relief also extends to compact sedans, where the revised 18% tax rate will apply. This means lower prices for models such as the Maruti Suzuki Dzire, Honda Amaze, Tata Tigor, and Hyundai Aura.

Mid-size sedans (above 4 metres), including the Honda City, Hyundai Verna, and Skoda Slavia, will also see reductions, as they are now taxed at a flat 40% GST (without cess) compared to the earlier 48–50% (28% GST plus cess).

Compact SUVs: The big winners

India’s favourite segment—compact SUVs—has witnessed GST slashed from 28% to 18%. This translates to more affordable options for cars like the Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue, Kia Sonet, and Mahindra XUV3X0.

With SUVs already accounting for over half of passenger vehicle sales in India, industry analysts expect the tax cut to accelerate demand even further.

Premium SUVs and luxury cars

Higher-end SUVs and luxury cars will now be taxed at a flat 40% GST, compared to the earlier ~48–50% (28% GST plus 20–22% cess), effectively reducing their tax burden by about 8–10 percentage points.

This includes popular models like the Toyota Fortuner, MG Hector, MG Gloster, Jeep Compass, and Hyundai Tucson, along with premium sedans from Volkswagen, Skoda, and Honda. While the reduction is smaller here, industry insiders believe even a modest cut will encourage aspirational buyers.

Industry outlook

Automakers and dealers have welcomed the move, calling it a “timely intervention” to stimulate sales at a time when high EMIs and fuel prices have strained consumer budgets. The Society of Indian Automobile Manufacturers (SIAM) said the decision would not only benefit customers but also strengthen the industry’s recovery momentum.