The Goods and Services Tax (GST) rate rationalisation has made cars across various body styles more affordable. If you are in the market for a 7-seater SUV, the options are plentiful, and now they are also cheaper. From the Mahindra XUV700 to the Tata Safari and the Toyota Fortuner, the prices of such models have gone down by almost Rs 3.49 lakh.
In the GST 1.0 regime, the relatively larger mass-market 7-seater SUVs attracted a GST of 28% and a compensation cess in the range of 17% to 22%. So the total tax incidence would be from 45% to 50%.
However, in the GST 2.0 regime, the same models are in the 40% slab with no compensation cess, resulting in a lower total tax incidence (45%-50% earlier to 40% now). This has resulted in a price cut for such models.
Just for reference, the ex-showroom price of any vehicle is inclusive of GST. Earlier, the ex-showroom price included compensation cess as well.
Among the popular mass-market 7-seater SUVs in India are the Hyundai Alcazar, Mahindra Scorpio-N, Mahindra XUV700, Tata Safari, Toyota Fortuner, Toyota Legender, MG Hector Plus, MG Gloster and Jeep Meridian.
The GST 2.0 regime with new rates will kick in from September 22, the first day of the nine-day Navaratri festival. The lower ex-showroom prices will come into effect on the same date.
The ex-showroom price of the Alcazar will drop by up to Rs 75,376. The Scorpio-N and the XUV700 will become cheaper by up to Rs 1.45 lakh and Rs 1.43 lakh, respectively. The Safari will receive a price cut of Rs 1.45 lakh.
While the Fortuner price will drop by up to Rs 3.49 lakh, that of the Legender will witness a price cut of up to Rs 3.34 lakh.
On the Hector range, the price drop will be up to Rs 1.49 lakh, while the Gloster will become cheaper by up to Rs 3.04 lakh. The price cut on the Meridian will be as much as Rs 2.47 lakh.
GST 7-SEATER SUV PRICE REDUCTION
| Model | Price Reduction By Up To |
| Hyundai Alcazar | Rs 75,376 |
| Mahindra Scorpio-N | Rs 1.45 lakh |
| Mahindra XUV700 | Rs 1.43 lakh |
| Tata Safari | Rs 1.45 lakh |
| Toyota Fortuner | Rs 3.49 lakh |
| Toyota Legender | Rs 3.34 lakh |
| MG Hector range (including Hector Plus) | Rs 1.49 lakh |
| MG Gloster | Rs 3.04 lakh |
| Jeep Meridian | Rs 2.47 lakh |
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