Mahindra New Price After GST Rate Cut: Mahindra Cars Cheaper By Rs 1.56 Lakh Including Mahindra Thar Roxx, Mahindra Scorpio N, Mahindra Bolero, Mahindra XUV700, Mahindra XUV 3XO
Mahindra has immediately passed on the benefits to its customers, unlike some brands where the new prices will be applicable on September 22
If you’re planning to bring a new Mahindra SUV home, we have some good news for you. The popular SUV manufacturer has passed on the GST rate cut benefits to its customers, starting from September 6. This is great news because some other manufacturers have announced that it will be passing on benefits only on September 22, when the new GST rates will be put into effect.
How Much Savings Will Customers Get On Mahindra SUVs?
Here’s a look at the savings Mahindra is passing on to its customers due to the revised GST rates:
| Models | Current GST + Cess | New GST | Full GST Benefits starting September 6 |
| Bolero/ Bolero Neo | 31% | 18% | Rs 1.27 lakh |
| XUV 3XO (Petrol) | 29% | 18% | Rs 1.4 lakh |
| XUV 3XO (Diesel) | 31% | 18% | Rs 1.56 lakh |
| THAR RWD (Diesel) | 31% | 18% | Rs 1.35 lakh |
| THAR 4WD (Diesel) | 48% | 40% | Rs 1.01 lakh |
| Scorpio Classic | 48% | 40% | Rs 1.01 lakh |
| Scorpio-N | 48% | 40% | Rs 1.45 lakh |
| Thar Roxx | 48% | 40% | Rs 1.33 lakh |
| XUV700 | 48% | 40% | Rs 1.43 lakh |
Do note that the price cut might vary depending on the variant you pick. So we would suggest you contact your nearest Mahindra dealership to find out the exact savings for the model and variant you’re looking at.
What Are The Revised GST Slabs For Mahindra Cars?
Customers will now be offered savings of up to 13 percent depending on the Mahindra car you pick. You can check out the revised slabs here:
| Type Of Vehicle | Old GST Slab (Including Cess) | New GST Slab | Savings For Customers |
| Sub-4 Metre (Petrol) | 29 percent (28% GST + 1% cess) | 18 percent | 11 percent |
| Sub-4 Metre (Diesel) | 31 percent (28% GST + 3 % cess) | 18 percent | 13 percent |
| SUVs (Above 4 metres in length with engine capacity exceeding 1,500cc) | Up to 50 percent (28% GST + up to 22% cess) | 40 percent | 10 percent |
The highest savings are on Mahindra’s sub-4 metre diesel SUVs such as the Mahindra Bolero, Mahindra Bolero Neo, Mahindra XUV 3XO and Mahindra Thar. Meanwhile, for larger models such as the Mahindra XUV700, Mahindra Scorpio N and Mahindra Thar Roxx – customers get benefits of up to 10 percent.
Meanwhile, if you want to know the revised GST slabs for other types of vehicles such as hybrid SUVs and luxury cars, you can check out our in-depth piece here.
CarDekho Says
We are happy to see Mahindra offering GST cuts right away instead of waiting till September 22 for the new rates to come into effect. Combine this with the ongoing festive season and offers, it gives buyers an added advantage to bring home a new Mahindra SUV home.
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Sep 10, 2025, 6:37:01 PM
Gst rates would be effective from 22nd September
New GST Rates: GST Cuts on Large SUVs & Luxury Cars: Toyota Fortuner, Mercedes-Benz GLS, & More Will Become Affordable
Modified On Sep 04, 2025 08:09 PM By Ansh
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With the new GST slabs coming into effect, Large SUVs and Luxury cars may get cheaper by up to 10 percent
Premium sedans, big muscular SUVs, and top-notch luxury cars have always been aspirational for many, and for that aspiration, they ask for a huge sum of money. A reason for their prices to be so high is the GST and compensation cess placed by the government. However, this is about to change as the new GST slab for these vehicles will kick in from September 22, making such vehicles slightly affordable.
What Changed?
Earlier, the GST applicable on all cars over 4 metres used to be 28 percent, and on top of the GST, a compensation cess was placed which ranged from 15 percent to 22 percent. Now, while the GST has been increased to 40 percent, the compensation cess has been completely removed, which lowers the overall tax applied.
Since all large SUVs and luxury cars are over 4 metres in length, they will all be placed under a single GST slab of 40 percent.
| Hybrid Passenger Vehicles | |||
| GST | Compensation Cess | Total Tax | |
| Old | 28% | 15% | 43% |
| New | 40% | 0 | 40% |
| Difference | +12% | 3% | |
Strong hybrid passenger vehicles like the Toyota Vellfire, Lexus LM, and BMW XM, which used to attract 43 percent total tax, will now ask for a GST of 40 percent.
| 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% | |
All large SUVs which fulfil the criteria of length, engine size, and ground clearance used to have a total tax of 50 percent. This included cars like the Toyota Fortuner, Mercedes-Benz GLS, Jeep Wrangler, BMW X5, and more.
Under the new tax slab, the total tax on these cars will go down to 40 percent, resulting in a reduction of 10 percent, which is expected to be passed down to the customers.
| Vehicle Over 1500cc | |||
| GST | Compensation Cess | Total Tax | |
| Old | 28% | 20% | 48% |
| New | 40% | 0 | 40% |
| Difference | +12% | 8% | |
Luxury sedans like the Mercedes-Benz S-Class, Audi A6, BMW 7 Series and even performance cars made in the country will get a GST reduction of 8 percent.
Note: All imported cars whether CBUs (completely built up units) or CKDs (completely knocked down units) will have the same tax as before. 100 percent for CBUs and 50 percent for CKDs.
Also Read: GST Rate Cut For Cars: Cess Removed, All Cars To Get Cheaper
Other Benefits
The ex-showroom price of the vehicle consists of the factory price, GST, and compensation cess. Since the total tax will be reduced and the ex-showroom price will be lower, you’ll also need to pay a lower RTO tax. This will make your car’s on-road price more affordable.
With the new GST reforms, the cost of parts and components will be placed in the 5 percent slab instead of the previous 12 percent, and this may bring down the production cost of the vehicle, which will further reduce the factory price. However, even if this happens, the manufacturer may or may not choose to pass down these savings to the customer.
In any case, the cost of vehicles will go down due to the new GST norms.
Wait For New Prices
As mentioned earlier, these GST reductions will be applicable from September 22, and we expect manufacturers to announce the revised prices of their vehicles around the same date. If you are planning to buy a new car, we suggest you wait till the new prices are out.
When exactly the prices will be announced and how much the prices will go down is yet to be disclosed, but the new GST slabs will most definitely make large SUVs and luxury cars more affordable.
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