{"id":1299852,"date":"2025-09-06T10:03:59","date_gmt":"2025-09-06T04:33:59","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1299852"},"modified":"2025-09-06T10:04:46","modified_gmt":"2025-09-06T04:34:46","slug":"upto-13-saving-for-small-car-buyers-from-september-22-due-to-lower-gst","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/upto-13-saving-for-small-car-buyers-from-september-22-due-to-lower-gst\/","title":{"rendered":"Upto 13% Saving For Small Car Buyers From September 22 Due To Lower GST"},"content":{"rendered":"\n<p>The government has rolled out a <strong>major GST reform<\/strong> for passenger vehicles, effective <strong>September 22, 2025<\/strong>. The move slashes GST rates and removes the <strong>compensation cess<\/strong>, making all cars cheaper. While the exact savings will depend on how much benefit manufacturers pass on, sub-4m cars stand to gain the most.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"514\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Screenshot-2025-06-01-at-2.15.33\u202fPM-1024x514.png\" alt=\"Upto 13% Saving For Small Car Buyers From September 22 Due To Lower GST\" class=\"wp-image-1299866\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Screenshot-2025-06-01-at-2.15.33\u202fPM-1024x514.png 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Screenshot-2025-06-01-at-2.15.33\u202fPM-300x151.png 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Screenshot-2025-06-01-at-2.15.33\u202fPM-768x386.png 768w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Screenshot-2025-06-01-at-2.15.33\u202fPM.png 1386w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Before and After: Tax Changes Explained<\/h3>\n\n\n\n<p>Until now, car buyers paid <strong>28% GST plus a cess<\/strong> on the <a href=\"https:\/\/www.cardekho.com\/india-car-news\/why-buying-a-small-car-after-september-22-under-the-new-gst-rule-could-save-you-big-money-34980.htm\">ex-showroom price<\/a>. For petrol, CNG, and LPG cars under 4m with engines up to 1200cc, the total tax was 29%. For diesel cars under 4m with engines up to 1500cc, it was 31%.<\/p>\n\n\n\n<p>Under the new regime, GST has been cut to <strong>18%<\/strong>, and the <strong>cess is removed entirely<\/strong>. This means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Petrol\/CNG\/LPG sub-4m cars save <strong>11%<\/strong><\/li>\n\n\n\n<li>Diesel sub-4m cars save <strong>13%<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Larger cars and SUVs, including models with 1.5-litre engines, will also see reduced tax rates \u2014 for example, the Maruti Brezza now falls from 45% to 40%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Impact on Car Prices<\/h3>\n\n\n\n<p>Popular hatchbacks like the <strong>Tata Tiago, Maruti Swift, and Hyundai i20<\/strong>, as well as compact SUVs like the <strong>Tata Punch and Hyundai Exter<\/strong>, will benefit the most. Buyers could see <strong>up to 13% savings<\/strong> on ex-showroom prices.<\/p>\n\n\n\n<p>Additionally, the reduction in GST on auto parts and components could lower factory costs, further bringing down prices if carmakers choose to pass these savings on.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">On-Road Price Benefits Too<\/h3>\n\n\n\n<p>The price drop doesn\u2019t stop at ex-showroom costs. Since <strong>road tax and RTO charges are calculated on the ex-showroom price<\/strong>, buyers may also save on registration costs. This will make the final on-road price even more affordable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Catch: Will Carmakers Pass It On?<\/h3>\n\n\n\n<p>While tax cuts are clear, the <strong>extent of savings for customers will depend on carmakers<\/strong>. Some may pass on the full benefit, while others may retain a portion as profit. Final savings will only be visible once new ex-showroom prices are released.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government has rolled out a major GST reform for passenger vehicles, effective September 22, 2025. The move slashes GST rates and removes the compensation cess, making all cars cheaper. While the exact savings will depend on how much benefit manufacturers pass on, sub-4m cars stand to gain the most. Before and After: Tax Changes [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1299866,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[272,8492],"class_list":["post-1299852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-gst","tag-small-cars"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Upto 13% Saving For Small Car Buyers From September 22 Due To Lower GST - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/upto-13-saving-for-small-car-buyers-from-september-22-due-to-lower-gst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Upto 13% Saving For Small Car Buyers From September 22 Due To Lower GST - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"The government has rolled out a major GST reform for passenger vehicles, effective September 22, 2025. The move slashes GST rates and removes the compensation cess, making all cars cheaper. While the exact savings will depend on how much benefit manufacturers pass on, sub-4m cars stand to gain the most. Before and After: Tax Changes [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/upto-13-saving-for-small-car-buyers-from-september-22-due-to-lower-gst\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-06T04:33:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-06T04:34:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/09\/Screenshot-2025-06-01-at-2.15.33\u202fPM.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1386\" \/>\n\t<meta property=\"og:image:height\" content=\"696\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Mohul Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mohul Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/upto-13-saving-for-small-car-buyers-from-september-22-due-to-lower-gst\/\",\"url\":\"https:\/\/trak.in\/stories\/upto-13-saving-for-small-car-buyers-from-september-22-due-to-lower-gst\/\",\"name\":\"Upto 13% Saving For Small Car Buyers From September 22 Due To Lower GST - Trak.in - Indian Business of Tech, Mobile &amp; 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