GST (Goods and Services Tax) got implemented across India from July 1, 2017. It is proving to be a revolutionary tax reform. But it also has been little confusing for some people. As the majority of items prices have changed, it is interesting to see what difference it makes in the automobile industry. The impact is little more than marginal. We decode in the next section about five cars whose prices have dropped significantly.

While there has been a decline in the price of around 2.5% for cars less than four length metres with an engine capacity of less than 1.2-litre petrol, the fall for SUVs is much larger with 12%. SUVs have seen the biggest impact of GST implementation, while green cars are surprisingly kept out of GST benefits.

Let’s check out some of the popular models whose price has dropped:

  • Maruti Suzuki Alto

The popular hatchback from Maruti’s Stable had a positive impact after the implementation of GST. Prices have corrected between Rs 2,300 for its low range model to Rs 5,400 for its premier model.

  • Maruti Suzuki Baleno

The premier hatchback sedan by Maruti Suzuki has been a popular model for quite long. Currently, it has a big waiting list. The car price has dropped between Rs 6600 and Rs 13,100, and as many believe it will lengthen its already long waiting list.

  • Maruti Vitara Brezza

The fashionable and stylish Vitara Brezza has been a blockbuster since its launch. The sports utility vehicle has been on the wish list of many people. After the launch of GST, it has become more attractive. The car’s price has reduced by Rs 10,400-14,700.

  • Honda City

The evergreen and elite Honda City is little closer to your budget now. GST has been a good thing for the car as the price went down by around Rs 16,510 – Rs 20,005. The price drop has been more for its premier model compared to its base model.

  • Renault Duster

Nissan India had via a statement informed GST is a positive move for manufacturers as well as customers. The Nissan-Renault Alliance dropped Duster’s price by Rs 30,400 –Rs 1,04,700. Now you have no reasons for not visiting the wilds and the sands. Go outdoors with Duster and enjoy the ride.

Note – All prices are ex-showroom prices.  

 To sign off

As evident, the GST impact has heralded price movements across different manufacturers and different segments. However, make sure to check what will be the new on-road price based on this cut. For instance, in Maharashtra, this reduction is followed by a simultaneous rise in road tax. It means that the overall benefit becomes negligible eventually for the buyer in the state.

Let us know which car you feel would be perfect for your family especially post GST price drop.

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