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Top 5 Most Affordable Cars & Their Prices After GST Reform: Save Up To Rs 50,000!
India's automobile sector may see a major shift as the government plans sweeping GST reforms. At present, cars attract 28% GST-the highest slab-plus a compensation cess of 1% to 22% depending on engine size and length. This pushes the effective tax on vehicles from around 29% for small petrol cars to nearly 50% for SUVs, making them expensive for buyers. Electric vehicles are taxed much lower, at just 5%.
As per a PTI report, the Centre is considering a new two-tier GST system with slabs of 5% and 18%, while a 40% rate will apply only to select luxury goods. If approved, automobiles would shift to the 18% bracket, replacing the current 28%, and eliminating classification disputes. That said, below listed are the top 5 most affordable cars in India, and their respective prices post GST reform.
1. Maruti Suzuki Alto K10
Prices for the new Alto K10 starts at Rs 4.23 lakh (ex-showroom), with the updated GST, the base variant of this car could cost just Rs 3.87 lakh, which is approximately Rs 36,000 less than the current pricing.
2. Maruti Suzuki S-Presso
The Maruti S-Presso is a more stylish option compared to the Alto K10 and prices for this model currently starts from Rs 4.27 lakh (ex-showroom). Under the new GST, this model could just cost Rs 3.90 lakh!
3. Renault Kwid
With the GST Reform, the Renault Kwid could be priced closer to the outgoing Maruti Suzuki S-Presso with an approximate price tag of just Rs 4.30 lakh (ex-showroom). This is Rs 40,000 less than the current ex-showroom price of the model.
4. Maruti Suzuki Celerio
The Celerio is a much more desirable model than the above-listed models; however, at Rs 5.36 lakh (ex-showroom), this model could be out of budget for many new car buyers. So, under the new GST, the Celerio could become as cheap as Rs 4.90 lakh!
5. Tata Tiago
At Rs 5.65 lakh, the Safest entry-level hatchback in India, is not affordable for all buyers. However, under the new GST, prices for the Tiago could go as low as Rs 5.15 lakh, which is Rs 50,000 less compared to current pricing.
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