Although midsize and large SUVs now have higher GST, prices will still be reduced since the Cess is no longer applicable
With the recent GST rate cuts, hatchbacks and sub-4-meter SUVs are expected to see significant price reductions. Even compact, midsize and large SUVs are expected to become more accessible. The GST rate on these SUVs was 28%, along with additional Cess in the range of 15% to 22%.
In the new GST regime, a flat 40% GST is applicable on these SUVs. The Cess part has been completely withdrawn. Compact, midsize and large SUVs can thus become cheaper in the range of 3% to 10%. Let’s check out the new prices that could be applicable for popular SUVs after the new GST rates come into effect from 22nd September.
Compact C-segment SUVs, sedans – New prices after GST rate cut
SUVs like Hyundai Creta (petrol and diesel), Grand Vitara petrol and Skoda Kushaq were earlier taxed at 50%. This included 28% GST and Cess of 22%. As per the new GST regime, these SUVs will be taxed at a flat rate of 40%. These SUVs could see a price reduction of around 10%. Creta petrol could become cheaper by Rs 75,000 to Rs 1.39 lakh. Similarly, Creta diesel could see a price reduction in the range of Rs 84,000 to Rs 1.39 lakh.
Grand Vitara petrol could see prices drop by around Rs 76,000 to Rs 1.30 lakh. Skoda Kushaq could become more accessible in the range of Rs 74,000 to Rs 1.27 lakh. Grand Vitara hybrid was earlier taxed at 43%, which included 28% GST and Cess of 15%. A similar rate was applicable on Honda City Hybrid as well.
In the new GST regime, Grand Vitara hybrid could become cheaper by Rs 36,000 to Rs 52,000. Similarly, City hybrid could see prices drop by Rs 42,000. City petrol was earlier taxed at 45%, which included 28% GST and 17% Cess. With a flat rate of 40% as per the new GST regime, Honda City petrol could become cheaper by around Rs 43,000 to Rs 57,000.
Large SUVs – New prices after GST rate cut
Popular SUVs like Toyota Fortuner diesel, Mahindra XUV700 (petrol and diesel) and Innova Crysta diesel were earlier taxed at 50%. This included 28% GST and Cess of 22%. All these SUVs will now be taxed at a flat rate of 40%. Under the new GST regime, Fortuner diesel could see a price drop in the range of Rs 2.45 lakh to Rs 3.49 lakh. Starting price could reduce from the existing Rs 36.73 lakh to Rs 34.28 lakh.
XUV700 petrol could see a price reduction in the range of Rs 97,000 to Rs 1.57 lakh. Starting price could reduce from the current Rs 14.49 lakh to Rs 13.52 lakh. XUV700 diesel variants could get cheaper in the range of Rs 1 lakh to Rs 1.58 lakh. Starting price could drop to Rs 13.99 lakh from the current Rs 14.99 lakh.
Innova Crysta diesel could become more accessible in the range of Rs 1.34 lakh to Rs 1.82 lakh. Starting price could reduce from the existing Rs 19.99 lakh to Rs 18.65 lakh. Innova Hycross hybrid was earlier taxed at 43% (28% GST + 15% Cess). Under the new GST regime, Innova Hycross hybrid could see a price drop in the range of Rs 56,000 to Rs 68,000. Starting price could reduce from Rs 26.46 lakh to Rs 25.90 lakh.
It is worth noting that these reduced prices will be accessible only when OEMs transfer the full benefits of the GST rate cuts to consumers. Carmakers like Tata Motors have already announced their revised price list. Most other carmakers are expected to pass on the GST concessions to their customers.
