By Swastika Sahu
Maruti Suzuki, the largest automobile producer in India, announced that it will pass on the
complete benefits of the recent GST rate cuts to customers, reducing ex-showroom prices of its
passenger vehicles by upto ₹1.29 lakh on Thursday.
The revised pricing will be implemented from September 22,2025, in line with the new GST
guidelines, and this modification coincides with the upcoming festive period. Entry level cars
such as the S-Presso and Alto K10 will see the most significant price reductions, with decreases
of upto ₹1.29 lakh and ₹1.7 lakh, respectively. SUVs such as Fronxx and Brezza will be
experiencing decreases of up to ₹1.12 lakh.
On 4 September 2025, the government reduced GST rates on various products including soaps to
compact cars; marking India’s most significant indirect tax reforms since the Goods & Services
Tax was implemented on 1 July 2017.
This happened because of the simplification of GST from four tax rates ( 5%, 12%, 18%, and
28%) to only two ( 5% and 18%). Almost all necessary products fall within the 5% tax category,
whereas luxury items incur an 18% GST. An additional 40% slab has been implemented for
luxury goods and tobacco items.
The GST Council, in its effort to rationalize, also chose to clarify the definition of a car and the
way it will be taxed. The government defines “small cars” as those measuring under 4 metres in
length, featuring petrol engines smaller than 1,200 cc and diesel engines under 1,500 cc. These
vehicles will incur an 18% tax.
“Larger vehicles” or “premium vehicles” measure over 4 meters in length and have petrol
engines exceeding 1,200 cc and diesel engines surpassing 1,500 cc. These vehicles will be
subjected to a 40% tax.
This definition also applies to hybrid vehicles. Electric vehicles, including electric cars, still
qualify for the lowest 5% GST rate.The easing follows the GST Council, led by Finance Minister
Nirmala Sitharaman, during its 56th session, revealed a significant tax cut on compact vehicles.
The tax on goods and services. The GST rate has been reduced to 18% from the previous 28%,
together with the elimination of the 1% surcharge.
Maruti Suzuki, the biggest automobile manufacturer in India, maintains a solid presence in the
sub-four-metre classification, which is the essential recipient of the tax reduction. With a
substantial portion of its holdings decreasing in this section, purchasers can anticipate decreased
ex-showroom costs throughout numerous well-known models.
Sanjeev Grover, Executive Director &Secretary of the Company, Maruti Suzuki, India Limited
has verified the declaration.