These Cars Will Become A Lot Cheaper Under New GST Rules

 In a significant move that is set to bring cheer to prospective car buyers, especially in the entry-level segment, the Goods and Services Tax (GST) Council has announced a major rejig of the tax structure for automobiles, effective September 22, 2025.

 The new GST rates are expected to make small cars and entry-level motorcycles more affordable, providing a much-needed boost to the automobile industry especially carmakers like Maruti and Hyundai

Under the revised framework, petrol, LPG, and CNG cars with engine capacities up to 1,200 cc and diesel cars with engine capacities up to 1,500 cc, provided their length does not exceed 4,000 mm, will now be taxed at a lower 18% GST. This is a substantial reduction from the previous 28% GST, which was further augmented by a cess of 1% on petrol and 3% on diesel models. 

This move is anticipated to translate into significant price drops for some of the country's most popular car models.

The decision is seen as a strategic step to invigorate demand in the small car segment, which has been facing sluggish growth in recent times. By making these vehicles more accessible, the government aims to encourage more first-time buyers and families to enter the car market. 

The timing of this announcement, just ahead of the festive season, is also expected to amplify its positive impact on sales.

For consumers in Delhi NCR, this GST revision will lead to noticeable savings. Let's take a look at the top selling small cars and SUVs that are set to become more affordable: