Posts tagged: Mahindra GST Benefits

Mahindra Model-Wise Benefits:

Mahindra has confirmed that its ICE SUV lineup will see a reduction in remarkable price under the revised system. Highest advantage of 1.56 lakh XUV3xo is available on diesel, while other models such as Scorpio-N, XUV700, and Thar also see cuts in the range of Thar 1-1.45 lakhs. If you are interested in buying a Mahindra SUV, take a look at the complete list of model-wise price reduction below.

GST 2.0: What has changed?

The New Goods and Services Tax (GST) structure, which was dubbed 'GST 2.0', was announced last month and now it has come into force nationwide. The update system simplifies automobile taxation by going into a two-slab structure of 5 percent and 18 percent, with 40 percent slabs reserved for large cars, SUVs and premium motorcycles above 350 cc. Importantly, additional compensation cess has been removed with cess that was previously applied to the top of GST.

This improvement means tax is levied at 18 percent on small cars (petrol up to 1,200 cc and diesel up to 1,500 cc), which is a significant reduction from the first 28 percent. Larger vehicles, including SUV above four meters with large engines, have been slot in 40 percent slab, despite high rates on paper, the last 45–48 percent is cheaper than tax when cess was included.

Also Read: GST rate deduction cheers on celebration, but cloud clouds on dealers

What does this mean for buyers

For potential SUV buyers, Mahindra's move comes just before the festive season, potentially demanding. While small and medium-sized SUVs such as XUV 3xo see the fastest price cuts, even large models such as Scorpio-N and XUV700 are now slightly more cheaper under GST 2.0.

Look at the upcoming cars in India, the best SUV in India.

First published date: 06 September 2025, 14:19 PM IST