The Modi government is preparing to give great relief to customers before Diwali. The government is bringing a proposal to reduce GST on small cars. If this applies, the prices of cars like Maruti Alto, Swift, Dzire and Wagonr can be reduced by 40 to 70 thousand rupees.
GST reduced relief to customers
Before the festive season, the Modi government is planning to give a big gift to the customers. It is reported that the government is preparing to reduce GST (GST) on small cars from 28% to 18%. If this decision is applicable, the prices of cars will be reduced by 10%.
Buying a car will be cheaper
Currently, cars also have 1% cess with 28% GST. That is, the total tax becomes 29%. For example, if the price of a car is Rs 5 lakh, then after adding tax, it falls for 6.45 lakh rupees. But if GST is reduced to 18%, the same car will be available for Rs 5.90 lakh. That is, the customer will save about 55,000 rupees.
Benefits on Maruti Alto K10
Maruti Suzuki’s cheapest car Alto K10 currently starts at Rs 4.23 lakh. The current tax is close to Rs 1.22 lakh. If GST decreases to 18%, the tax will be reduced to about 80,000 rupees. That is, the customer will get relief of up to Rs 42,000 on ALTO.
Wagonr’s new price
WagonR currently starts at Rs 5.78 lakh in the Indian market. The current tax is Rs 1.67 lakh. This tax will be reduced to 1.09 lakh rupees after GST decreases. That is, customers who buy WagonR can save up to Rs 58,000.
Swift will be cheap
Maruti Swift is extremely popular among Indian customers. Its initial price is 6.49 lakh rupees. At present, it is taxed at Rs 1.88 lakh. If the tax is increased to 18%, it will be reduced to 1.23 lakh rupees. In this way, there will be relief of up to Rs 65,000 at the price of Swift.
How much will be benefited on dzire
The initial price of Maruti Dzire is 6.83 lakh rupees. The current tax is Rs 1.98 lakh. If GST decreases, tax will be saved only 1.29 lakh rupees. That is, those who buy Dzire will get a savings of about 68,000 rupees. This compact sedan will become even more economical for customers.
There will be big savings on Brezza
The current price of Maruti Brezza is 8.69 lakh rupees. At present, Rs 2.52 lakh is taxed on this. If GST is increased to 18%, then tax will be only 1.65 lakh rupees. That is, customers will get a benefit of up to Rs 87,000 on Brezza.
Ertiga will be affordable
Maruti Ertiga, which is a popular MPV, currently starts from Rs 9.11 lakh. It is taxed at Rs 2.64 lakh. After GST is reduced, it will reduce to Rs 1.73 lakh. That is, saving up to Rs 91,000 on Ertiga is possible.
Diwali gift for customers
If this decision is implemented, it will be easy for middle class families to buy a car before Diwali. Small cars like Alto, WagonR, Swift and Dzire will save from Rs 40,000 to 70,000. At the same time, big models like Brezza and Ertiga can get relief of up to Rs 90,000.
Auto sector will also benefit
The cut in GST can prove to be a boon not only for customers but also for the automobile industry. The demand for cars will increase and the sales of companies will increase. Especially the sale of entry-level and mid-segment cars may increase.
