GST Effect On Cars and SUVs


2All Sub 4-meter vehicles: Petrol Engines Less than 1.2-litre

GST Effect on Baleno

The sub 4-meter petrol segment for cars with engines less than 1.2-litres is one of the largest and most popular segments in the country. It includes the likes of the top selling Maruti Suzuki Alto, Maruti Suzuki Baleno, Maruti Suzuki Dzire, Hyundai i20, Hyundai Grand i10, Volkswagen Polo, Tata Tiago, Tata Tigor, Toyota Etios Liva, Ford EcoSport (with ecoboost engine) etc.

The current tax structure, with the sub 4-meter relief on the hatchbacks, sedans and SUVs in the category is at 31.5 per cent. This includes the excise duties, various added cess and value added tax or VAT. The new post GST structure will change that figure to a total tax of 29 per cent. This will include the 28 per cent GST slab plus an additional 1 per cent cess that will be levied on cars of this category. In essence, cars of this category will be cheaper by 2.5 per cent (Before insurance and registration charges) as a pert of GST effect. This makes it the least tax segment for all cars and SUVs in the country (with an internal combustion engine).


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