GST Effects – List of Cars, Bikes that will become Cheaper from Tomorrow


Buying cars and two-wheelers will be a much cheaper affair from tomorrow as Goods and Services Tax (GST) will ring in a lower tax than all the taxes applied before.

Prices of all small cars in the same bracket as Alto, Swift, Dzire, i20 Elite, to name a few, will see a minimum drop of Rs 6,500 going up to at least 15,000. This is because, after July 1, the GST rate will be 29 percent from the current 31.4 percent slapped on such cars.

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Mid-size cars will be even cheaper as their rates from tomorrow will be down by 3.6 percent. Sedans like Honda City, Hyundai Verna, Maruti Ciaz and Volkswagen Vento will see a minimum price cut of Rs 30,000.

1Sedan Cars

The biggest beneficiary of the GST roll-out will be luxury cars. Mercedes-Benz, BMW, Audi and Jaguar Land Rover have announced price cuts in the Rs 1.25 lakh going up to Rs 7 lakh as the rate reduction on them is a whopping 8.8 percent.

Sports utility vehicles, the most sought-after personal vehicles, will see the biggest drop in prices. Under GST, SUVs are charged at 43 percent, a reduction of 12.3 percent compared to 55.3 percent charged presently.

GST is subsuming a total of five taxes and levies — excise, NCCD, infra cess, CST and VAT — which is bringing down the final effective tax rate in almost all the cases. These charges make up the ex-showroom price of a vehicle.

Value added tax (VAT) differs from state to state and, therefore, the price of the vehicle will not remain uniform across the country.



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