The festive season has arrived, accompanied by the Goods and Services Tax (GST) rate rationalisation. While the levy restructuring has made automobiles cheaper in India, there is good news for you if you are looking to switch from your two-wheeler to a small car.
The smaller cars have been the biggest beneficiaries in the GST 2.0 regime. They earlier attracted a GST of 28% along with a compensation cess from 1-3%, taking the total tax incidence to 29-31%. However, they are under the 18% GST slab now with no compensation cess.
Amid lower taxation, their prices have decreased to the point where models like the Maruti Suzuki WagonR, Maruti Suzuki Alto K10, Maruti Suzuki S-Presso, Tata Tiago, and Renault Kwid can now be purchased under Rs 5,00,000 (ex-showroom).
With the GST price cut, the S-Presso has become the most affordable car in India. While its price has gone down by up to Rs 1,29,600, it now starts at Rs 3,49,900. Talking about the Alto K10, you can get the base variant at Rs 3,69,900 with the price reduction being up to Rs 1,07,600.
The entry-level variant of the WagonR, which is one of the largest-selling cars in India, can be had for just Rs 4,98,900. The hatchback has received a price cut of up to Rs 79,600.
The Tiago and the Kwid now start at Rs 4,57,490 and Rs 4,29,900, respectively. While the Tiago has seen a price cut of up to Rs 75,000, the Kwid has become cheaper by up to Rs 55,095.
GST PRICE CUT
| Model | Ex-showroom price reduction | New ex-showroom starting price |
| Maruti Suzuki S-Presso | Up to Rs 1,29,600 | Rs 3,49,900 |
| Maruti Suzuki Alto K10 | Up to Rs 1,07,600 | Rs 3,69,900 |
| Maruti Suzuki WagonR | Up to Rs 79,600 | Rs 4,98,900 |
| Tata Tiago | Up to Rs 75,000 | Rs 4,57,490 |
| Renault Kwid | Up to Rs 55,095 | Rs 4,29,900 |
While the GST price cut has made cars cheaper, the companies are also providing limited-period additional benefits to enhance their festive season sales.
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