Maruti Suzuki India Ltd., the country’s largest carmaker, has announced revised prices for its models to pass on the full benefit of the government’s GST rate cuts to buyers. According to an exchange filing on Thursday, the entry-level Alto K10 is now priced at ₹3,69,900, down ₹1,07,600. Similarly, the Grand Vitara sees an identical reduction, bringing its starting price to ₹10,76,500.
GST Rate Cut, Simplified Tax Slabs
On 4 September 2025, the Indian government implemented sweeping GST reforms – the most significant since the introduction of Goods and Services Tax on 1 July 2017. The reforms reduced GST rates across hundreds of items, from essential commodities like soaps to small cars.
The GST rationalisation simplified tax slabs from four (5%, 12%, 18%, and 28%) to two main rates (5% and 18%), with a new 40% slab introduced for luxury goods and tobacco products. Essential goods largely fall under the 5% bracket, while discretionary items attract 18% GST.
As part of the rationalisation, the GST Council clarified how cars will be taxed:
Small cars – Less than 4 metres in length, petrol engines under 1,200 cc, diesel engines under 1,500 cc, taxed at 18%.
Luxury or bigger cars – Over 4 metres, petrol engines above 1,200 cc, diesel engines above 1,500 cc, taxed at 40%.
Hybrid cars follow the same classification, while electric vehicles continue to enjoy the lowest 5% GST.
Maruti Suzuki New Prices After GST Rationalisation
Maruti Suzuki, with most of its sales coming from small cars, is among the biggest beneficiaries. Model-wise reductions and new starting prices are as follows:
| Model | Reduction in Ex-Showroom Price (₹) | Starting Price (₹) |
|---|---|---|
| S-Presso | Up to 1,29,600 | 3,49,900 |
| Alto K10 | Up to 1,07,600 | 3,69,900 |
| Celerio | Up to 94,100 | 4,69,900 |
| Wagon-R | Up to 79,600 | 4,98,900 |
| Ignis | Up to 71,300 | 5,35,100 |
| Swift | Up to 84,600 | 5,78,900 |
| Baleno | Up to 86,100 | 5,98,900 |
| Tour S | Up to 67,200 | 6,23,800 |
| Dzire | Up to 87,700 | 6,25,600 |
| Fronx | Up to 1,12,600 | 6,84,900 |
| Brezza | Up to 1,12,700 | 8,25,900 |
| Grand Vitara | Up to 1,07,000 | 10,76,500 |
| Jimny | Up to 51,900 | 12,31,500 |
| Ertiga | Up to 46,400 | 8,80,000 |
| XL6 | Up to 52,000 | 11,52,300 |
| Invicto | Up to 61,700 | 24,97,400 |
| Eeco | Up to 68,000 | 5,18,100 |
| Super Carry | Up to 52,100 | 5,06,100 |
Table created with AI
It is important to note that some models do not qualify as small cars despite engine size or length. For instance, the Jimny has a 1.5-litre petrol engine but is taxed at 40% due to its engine size, while the Ertiga has a 1,198 cc petrol engine but exceeds 4 metres in length. Only cars meeting all criteria are eligible for the 18% GST.
Maruti Suzuki Chairman on GST Reforms
RC Bhargava, Chairman of Maruti Suzuki, commented on the reforms in August, saying, “The restructuring [of GST] will increase competitiveness of Indian products, and the opening of trade borders will bring in the necessary competition. Competition, combined with your ability to produce and sell at lower prices, makes for the best efficiency.”
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
