GST Rate Cut For Cars: Cess Removed, All Cars To Get Cheaper
Let’s put the confusion to rest, there are no cars that get expensive post GST 2.0
One of the highlights of the GST reforms is the abolishment of cess. Previously, a compensation cess ranging between 1% to 22% was levied on cars based on their category or drivetrain. This caused the effective tax to range between 29-50%.
However, the removal of cess has lowered the total tax considerably. To understand this better, let’s compare the older and newer tax structures with examples.
With GST 2.0, the Indian automotive industry seems to be breathing a sigh of relief. The GST council has reduced tax rates across categories making your dream car that much more affordable.
| Passenger Vehicles (Petrol, CNG, LPG) Up to 4m in length and up to 1200cc engine | |||
| GST | Compensation Cess | Total Tax | |
| Old | 28% | 1% | 29% |
| New | 18% | 0 | 18% |
| Savings | 10% | 11% | |
Vehicles that fall under this category include all small hatchbacks and most sub-compact SUVs. Vehicles such as the Maruti Suzuki Alto, Renault Kwid, Maruti Suzuki Baleno, and Hyundai i20 will benefit from the lowered rates.
Similarly, sub-4-metre SUVs with petrol engines smaller than 1200cc, such as the Hyundai Venue, Kia Sonet, Kia Syros, Tata Nexon, Tata Punch will benefit.
Note: Since the Brezza has a 1500cc engine, the compensation cess was higher at 17%, taking the effective tax to 45%. Under the new GST regime, it will be taxed at 40%, providing marginal relief to buyers.
Also Read: Why Buying A Small Car After September 22 Under The New GST Rule Could Save You Big Money
Small Cars (Diesel)
| Passenger Vehicles (Diesel) Up to 4m in Length and up to 1500cc engine | |||
| GST | Compensation Cess | Total Tax | |
| Old | 28% | 3% | 31% |
| New | 18% | 0 | 18% |
| Savings | 10% | 13% | |
There are limited models that benefit here. Small diesel SUVs, such as the Tata Nexon, Kia Sonet, Kia Syros and Mahindra XUV 3XO are expected to see price drops due to this change.
Mid-Size/Large Hybrid Cars (Above 4-metres)
| Hybrid Passenger Vehicles | |||
| GST | Compensation Cess | Total Tax | |
| Old | 28% | 15% | 43% |
| New | 40% | 0 | 40% |
| Difference | +12% | 3% | |
Hybrid cars above 4 metres in length also get a marginal 3% relief, despite an increase in GST. The Grand Vitara Strong Hybrid, Toyota Hyryder Hybrid, Honda City Hybrid, Toyota Innova Hycross Hybrid and Maruti Suzuki Invicto Hybrid will benefit from the removal of compensation cess.
Mid-Size Cars
| Vehicle Upto 1500cc | |||
| GST | Compensation Cess | Total Tax | |
| Old | 28% | 17% | 45% |
| New | 40% | 0 | 40% |
| Difference | +12% | 5% | |
The earlier tax structure made a distinction for vehicles ‘up to 1500cc’. Most SUVs and sedans in the 4.3-metre bracket, such as the Hyundai Creta, Kia Seltos, Volkswagen Virtus, Skoda Slavia, and Maruti Ertiga fall into this category.
While the GST rates have been hiked from 28% to 40%, the removal of cess means the effective tax is lower.
Also Read: GST Rate Cut On Cars: Hyundai Creta, VW Virtus, Mahindra Thar Roxx, And More Will Get CHEAPER!
SUVs
| Passenger Vehicles popularly known as SUVs (Above 4m in length, above >1500cc engine & >170 mm Ground Clearance) | |||
| GST | Compensation Cess | Total Tax | |
| Old | 28% | 22% | 50% |
| New | 40% | 0 | 40% |
| Difference | +12% | 10% | |
Big relief for SUV fans too, as the removal of an exorbitant 22% cess brings the effective tax on popular cars such as the Mahindra XUV700, Mahindra Scorpio N, and Toyota Fortuner down to 40%. Considering the relatively high prices of these SUVs, the savings are expected to be substantial here.
Electric Vehicles
There are no changes to the GST rates for electric vehicles. All electric vehicles are taxed at 5% as before, with no cess of any sort.
Luxury Cars
Luxury cars would attract a compensation cess of 20-22% over and above 28% GST based on their classification. Going forward, these cars will be taxed at 40%, resulting in a saving of 8-10%.
CarDekho Says
Overall, the GST reforms are positive for the Indian automotive industry. Given months of slow or no growth, and flat-lining sales, manufacturers are sure to be breathing easy now. The new rates are effective from September 22, just in time for the festive season which is expected to give a boost to demand.
Maruti Victoris: Here’s What Each Variant Of The New Maruti Arena SUV Has On Offer
Modified On Sep 12, 2025 03:54 PM By Rohit
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The Maruti Victoris will be available in four broad variant lines in typical Arena fashion: LXi, VXi, ZXi, and ZXi Plus
The Maruti Victoris, after being spied on test multiple times, has finally broken cover. It will slot between the Maruti Brezza and the Grand Vitara in the carmaker’s SUV lineup. The Victoris is slated to be offered via the Arena chain of showrooms, and Maruti has opened bookings for the SUV for Rs 11,000. It will be available in four broad variant lines – LXi, VXi, ZXi, and ZXi Plus – with the latter two also having an optional (O) sub-variant each. If you were looking to put your name down for the new Maruti SUV, take a look at all the top features that each variant has to offer:
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Maruti Victoris LXi
| Exterior | Interior | Comfort and Convenience | Infotainment | Safety |
| Halogen headlightsHalogen positioning lampsLED tail lights17-inch steel wheels with coversSilver-finished front and rear skid platesORVMs with turn indicatorsRear spoilerSharfin antenna | Black and Ivory dual-tone cabin theme with silver accentsPiano black inserts on the dashboard and door padsBlack fabric seat upholsteryAdjustable headrests for all seatsFront centre armrest with storageRear centre armrest with cupholders | Analogue instrument cluster with multi-information display (MID) 60:40 split-folding rear seatsType-A USB port (front)Push-button start/stopAuto climate control with rear AC ventsCabin air filterTilt and telescopic adjustment for the steering wheelKeyless entryDay/night IRVM (inside rear view mirror) | 7-inch touchscreen infotainment systemWireless Apple CarPlay and Android AutoOTA updatesVoice assistantDual speakersSteering-mounted audio and calling controls | Six airbagsElectronic stability programme (ESP)Traction control systemHill-hold assistABS with EBD and brake assistRear parking sensors3-point seatbelts for all seats with remindersISOFIX child seat anchoragesRear defoggerTyre repair kit |
The base-spec LXi trim is well covered when it comes to safety features, as it includes six airbags, ISOFIX child seat anchorages, and ESP. It also comes with just enough of the basic design touches and creature comforts in the form of halogen headlights, a 7-inch touchscreen, and auto climate control with rear AC vents.
Also Read: Maruti Victoris Mileage And Variant-wise Powertrain Options Revealed
Maruti Victoris VXi (over LXi)
| Exterior | Interior | Comfort and Convenience | Infotainment | Safety |
| Connected LED tail lightsBody coloured door handlesBody coloured ORVMsRoof rails | Chrome inside door handlesIlluminated gloveboxFront footwell illuminationFront seat back pocketVanity mirror for front passengers | 10.25-inch all-digital driver’s display (strong-hybrid only)Height-adjustable driver seatBoot lampDual 45 W Type-C USB charging ports (rear)PM2.5 air filterElectrically foldable ORVMsCruise controlPaddle shifters (AT only)Drive modes – Eco, Normal and Sport (strong-hybrid only) | Connected car tech (telematics)Front tweeters (x2)Alexa connectivity | Electronic parking brake with auto-hold (AT only)Rear parking cameraTyre pressure monitoring system (TPMS)Acoustic Vehicle Alert System (AVAS) for strong-hybrid only |
The 1-above base VXi variant gets many design additions, such as body coloured door handles and ORVMs, as well as chrome inside door handles to make it look more premium than the entry-level LXi trim. Its comfort, convenience and safety kit also gets useful touches like cruise control, a 10.25-inch all-digital driver’s display (strong-hybrid only), a reversing camera, and a TPMS.
Also Read: Your ULTIMATE Buying Guide For The Maruti Victoris
Maruti Victoris ZXi (over VXi)
| Exterior | Interior | Comfort and Convenience | Infotainment | Safety |
| Auto-LED projector headlights with follow-me-home functionLED positioning lampsLED DRLs (which also double up as turn indicators)Front LED fog lamps17-inch black-painted alloy wheelsGrey finished front and rear skid plates (strong-hybrid only) | All-black cabin theme with bronze accents (strong-hybrid only)Soft-touch material on the dashboard (black/ivory for petrol and all-black for strong-hybrid version)Leatherette upholstery (black/ivory for petrol and all-black for strong-hybrid version)Sunglass holder | 10.25-inch full-digital driver’s displayPowered tailgate with gesture controlWireless smartphone chargerAuto-dimming IRVM | None | Rear wiper and washerFront variable intermittent wipers |
While the ZXi trim is the second-to-top variant in the Victoris’ lineup, the only changes it gets over the previous-in-line VXi are pertaining to exterior and interior design along with some comfort and convenience features and a useful safety addition. These include auto-LED headlights, alloy wheels, leatherette upholstery, a powered tailgate, and wireless smartphone charger. The only feature the next-in-line ZXi (O) comes with over the ZXi is a panoramic sunroof.
Maruti Victoris ZXi Plus (over ZXi)
| Exterior | Interior | Comfort and Convenience | Infotainment | Safety |
| Machine-finished 17-inch alloy wheels | Leatherette-wrapped steering wheel64-colour ambient lightingVanity mirror lamps for both front passengers | Ventilated front seats8-way power-adjustable driver seatHeads-up displayAir purifier45 W and 15 W Type-C USB charging ports (front)Auto-folding ORVMsCruise control (MT and strong-hybrid only)Terrain modes for AWD^ – Snow, Sport, Lock and AutoPuddle lamps | 10.1-inch touchscreen infotainment system8-speaker Infinity sound system with subwooferDolby Atmos surround sound systemInternet connectivity | Level-2 ADAS*Hill-descent control (AWD only)360-degree cameraFront parking sensors |
^AWD – All-wheel drive
*ADAS – Advanced driver assistance systems
The fully loaded ZXi+ trim packs all the premium amenities such as ventilated front seats, an 8-way power-adjustable driver seat, a 10-inch touchscreen infotainment unit, Level-2 ADAS, and even a 360-degree camera. Do note that the panoramic sunroof is available only with the ZXi (O) variant, as seen with the previous-in-line ZXi trim as well.
Its ADAS suite comprises tech like adaptive cruise control, automatic emergency braking, forward collision warning, and lane keep assist.
Powertrain On Offer
Maruti is set to equip the Victoris with the following powertrain options, as given in the table below:
| Specification | 1.5-litre naturally aspirated petrol with mild-hybrid tech | 1.5-litre naturally aspirated petrol with strong-hybrid tech | 1.5-litre petrol+CNG |
| Power | 103 PS | 116 PS (combined) | 88 PS |
| Torque | 139 Nm | 141 Nm (hybrid system) | 121.5 Nm |
| Transmission | 5-speed MT, 6-speed AT^ | e-CVT | 5-speed MT |
| Drivetrain | FWD*/ AWD | FWD | FWD |
| Claimed Fuel Efficiency | 21.18 kmpl (FWD MT), 21.06 kmpl (FWD AT)/ 19.07 kmpl (AWD AT) | 28.65 kmpl | 27.02 km/kg |
*FWD – Front-wheel drive
^AT – Torque converter automatic transmission
The Victoris comes with the same powertrain choices as the Grand Vitara, including the highly efficient strong-hybrid setup. Maruti is also offering it with the SUV with an AWD option, although it is limited to the top-spec ZXi+ trim and gets the AT option only.
Launch And Price
The Maruti Victoris is expected to go on sale around Diwali 2025 and could be priced from Rs 9.75 lakh (ex-showroom). It will fight it out with compact SUVs such as the Hyundai Creta, Skoda Kushaq, Honda Elevate, Citroen Aircross, and its own stablemate, the Maruti Grand Vitara.
