The Honda City has long been a household name in India, symbolising style, reliability, and premium comfort in the mid-size sedan segment. With its elegant design, spacious interiors, and Honda’s engineering finesse, the City has remained one of the most aspirational choices for buyers looking to upgrade from entry-level sedans or hatchbacks. Over the years, it has been offered in both a 1.5-litre petrol engine and an advanced hybrid variant, making it versatile for a wide range of buyers.Under the older GST regime, however, mid-size sedans like the Honda City were subject to higher taxation. Petrol variants were taxed at 28% GST plus 17% cess, totalling 45%, while hybrids were taxed at 28% GST plus 15% cess, totalling 43%. This meant that the City, despite being competitively priced in its class, still bore the burden of a steep tax structure that inflated its ex-showroom cost.With the rollout of GST 2.0, effective from September 22, 2025, this tax framework has been streamlined. Now, both the petrol and hybrid variants of the Honda City fall under a flat 40% GST rate, with the cess component eliminated. This change has led to a direct price drop of around ₹41,000–₹57,000, depending on the variant, making the City more affordable while retaining its premium positioning.

The Honda Amaze has earned a strong reputation in India’s compact sedan market as a practical, reliable, and family-friendly choice. With its spacious cabin, refined 1.2-litre petrol engine, and Honda’s proven durability, the Amaze continues to be a popular option among urban buyers and small families who need comfort without compromising on affordability. Known for its sleek design and city-friendly dimensions, it combines the feel of a sedan with the running costs of a hatchback.Until now, the Amaze was subject to India’s higher GST and cess slabs, which kept its ex-showroom price slightly above what many budget-conscious families preferred. Under the older tax structure, small petrol cars under 4 metres with engines up to 1200cc, like the Honda Amaze, attracted 28% GST and 1% cess, bringing the total to 29%. This inflated the price considerably compared to the car’s base manufacturing cost.This has changed dramatically with the introduction of GST 2.0, effective September 22, 2025. The cess has been completely removed, and the Honda Amaze now falls under a simplified 18% GST slab. The result is an effective 11% tax reduction, which directly translates into a price drop of up to ₹96,000, depending on the variant.

The MG Hector Plus is MG Motor’s answer to the growing demand for large, feature-rich SUVs that can comfortably seat six or seven passengers. Designed with premium interiors, bold exterior styling, and loaded with tech, the Hector Plus stands out as a capable and practical choice for Indian families looking for a spacious upgrade. It offers both 1.5-litre petrol and 2.0-litre diesel engine options, making it suitable for both urban and highway driving.Until now, one of the few deterrents for potential buyers has been the hefty tax burden associated with premium SUVs. Under the older GST system, the Hector Plus petrol variants attracted 28% GST and 17% cess, while diesel variants were taxed even higher 28% GST plus 22% cess, making the total tax outgo as high as 50%. This significantly increased the ex-showroom and on-road prices, especially for higher trims.With the implementation of GST 2.0, things have changed dramatically. Effective September 22, 2025, SUVs like the MG Hector Plus are now taxed at a flat 40% GST, with the cess component completely removed. The result? A direct price drop across all variants without any compromise on features or performance.

The MG Gloster is positioned as a full-sized luxury SUV in India, offering seven-seater comfort, premium interiors, and a commanding road presence. Known for its spacious cabin, advanced safety features, and smooth 2.0-litre turbo-diesel engine, the Gloster appeals to those seeking a premium SUV experience that rivals established global players. Its blend of sophistication and practicality makes it a favourite among luxury SUV enthusiasts.Until recently, buyers of premium SUVs like the MG Gloster were burdened with one of the highest indirect tax rates in the automotive sector. Under the old GST system, large SUVs (over 4m in length, engines above 1500cc, and ground clearance above 170mm) attracted 28% GST and an additional 22% cess, bringing the effective tax to a steep 50%. This had a direct impact on the ex-showroom price, pushing the cost of ownership considerably higher.With the rollout of GST 2.0, effective September 22, 2025, this tax structure has been simplified. The cess component has been scrapped entirely, and large SUVs like the MG Gloster now fall under a flat 40% GST rate. This results in a 10% tax reduction, which for a premium SUV translates into a major price drop — significantly improving its value proposition.

The MG Hector is one of the most recognisable mid-size SUVs in India. It is known for its bold design, spacious interiors, and tech-laden cabin. Offered with a choice of 1.5-litre petrol and 2.0-litre diesel engines, the Hector has consistently appealed to buyers looking for a premium SUV that balances comfort, performance, and modern features.With the introduction of GST 2.0, effective from September 22, 2025, the Indian car taxation system has been overhauled. For SUVs like the Hector, which is over 4 metres long, the old regime imposed a heavy tax burden. Petrol variants were taxed at 28% GST plus 17% cess (45% total), while diesel trims faced an even steeper 28% GST plus 22% cess (50% total). Under the new GST 2.0 system, all such vehicles now fall under a simplified 40% flat GST, removing the cess component entirely.This results in a meaningful price drop, especially for diesel buyers, who stand to gain the most under the revised structure.

The MG Astor is one of the most stylish mid-size SUVs in India. It is known for its premium interiors, strong feature list, and advanced safety package. With its 1.5-litre petrol engine and modern design, the Astor appeals to customers looking for a balance of sophistication and everyday usability. Positioned against rivals like the Hyundai Creta, Kia Seltos, and Maruti Suzuki Grand Vitara, the Astor has steadily built a reputation in the competitive SUV market.The rollout of GST 2.0 from September 22, 2025, has brought a simplified taxation system for cars in India. For models like the Astor — over 4 metres long and powered by a 1.5-litre petrol engine — the earlier tax structure imposed 28% GST plus 17% cess (45% total). Under the revised rules, the cess has been removed and replaced with a flat 40% GST.This change results in a price drop, making the Astor slightly more affordable and further strengthening its value proposition in the mid-size SUV space.

The Kia Carens Clavis enters the Indian market as a premium multi-utility crossover, positioned above compact SUVs but below larger MPVs. It blends bold styling with the practicality of a three-row layout, offering buyers a versatile package for family and long-distance travel. With both 1.5-litre petrol and 1.5-litre diesel engines on offer, the Carens Clavis is aimed at customers who want space, comfort, and efficiency without compromising on features.With the introduction of GST 2.0 from September 22, 2025, India’s automotive tax structure has been simplified. For models like the Carens Clavis — over 4 metres long with 1.5-litre engines — the earlier tax rate was 28% GST plus 17% cess (45% total). Under the new system, a uniform 40% GST is applied, replacing the complex cess-based structure.This revision results in a price drop, which translates into tangible savings for customers and strengthens the Carens Clavis’ appeal in a competitive market.

Since its launch, the Kia Seltos has been one of the most popular mid-size SUVs in India. It blends stylish design, strong performance, and feature-rich interiors. Available with both petrol and diesel engine options, it caters to a wide spectrum of buyers. Positioned above the sub-4-metre SUV segment, the Seltos competes directly with models like the Hyundai Creta, Maruti Grand Vitara, Toyota Urban Cruiser Hyryder, and Skoda Kushaq.With the introduction of GST 2.0 effective from September 22, 2025, the taxation structure for cars in India has undergone a significant revamp. For vehicles like the Kia Seltos — which is over 4 metres long and comes with 1.5-litre petrol and diesel engines — the earlier tax slab was 28% GST plus 17% cess (45% total). Under the revised regime, the cess has been removed, and a flat 40% GST is applied.This change results in a price drop for Seltos buyers, making the SUV a more value-driven proposition in its segment. This article explores the new prices in detail.

The Kia Sonet has carved a strong presence in India’s compact SUV market with its stylish design, feature-rich interiors, and multiple engine options. It offers something for everyone – from efficient 1.2-litre petrol trims to the sporty 1.0-litre turbo-petrol and the frugal 1.5-litre diesel.With the implementation of GST 2.0 from September 22, 2025, the Sonet has witnessed a major price drop. The new tax regime simplifies the structure, lowering levies on compact cars and SUVs under 4 metres. This makes the Sonet even more attractive for buyers across fuel choices.Here’s a detailed breakdown of how the new GST policy impacts the Sonet’s petrol and diesel variants.

The Kia Syros is one of the latest entrants in the compact SUV segment, designed to take on rivals like the Tata Nexon, Hyundai Venue, and Maruti Brezza. Positioned under 4 metres in length, the Syros blends Kia’s signature design flair with practicality and a wide range of features. It is offered with a 1.0-litre turbo-petrol engine and a 1.5-litre diesel engine, making it a versatile option for both city and highway driving.With the introduction of GST 2.0, effective from September 22, 2025, car buyers in India can expect notable price changes across multiple segments. Small cars, including compact SUVs like the Kia Syros, now benefit from a simpler, more rationalised tax structure. The GST rates for both small petrol and diesel cars have been revised, which has a direct impact on the ex-showroom prices of the Syros.Under the old GST regime, small petrol cars (under 4 metres with engines up to 1.2 litres) were taxed at 28% GST plus 1% cess (29% total). For small diesel cars (under 4 metres with engines up to 1.5 litres), the tax was 28% GST plus 3% cess (31% total). Now, under the revised structure, both categories are taxed at a flat 18% GST with no cess.This results in a significant price drop for both petrol and diesel variants of the Kia Syros, making the SUV even more competitive in its segment.