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.

2Two Wheelers

Other charges like road tax, registration cost, insurance and perhaps logistics charges are not subsumed in GST and will not be affected. These charges make up the final on-road price the buyer has to pay to the dealer.

As far as prices of bikes and scooters are concerned they will witness a minimum fall of Rs 1,000 going up to Rs 5,000. All two-wheelers with engines of less than 350cc will see the reduction of 2.2 percent. However, those with engines bigger than that will see a price rise of 0.8 percent or a minimum of Rs 1,000.


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