The Maruti Suzuki Fronx has quickly become one of the most popular compact crossovers in India. With bold SUV-inspired styling, modern features, and the option of multiple powertrains, the Fronx caters to a wide audience — from first-time SUV buyers to young families and commuters seeking a stylish yet affordable option. Offered with a 1.2-litre petrol engine, a 1.0-litre turbo-petrol engine for enthusiasts, and a CNG variant for economy-focused buyers, the Fronx delivers versatility unmatched in its class.Under the old GST system, however, the Fronx was taxed at 28% GST plus 1% cess, totalling 29%. This inflated its ex-showroom price, making higher trims less affordable in a price-sensitive market.With the rollout of GST 2.0, effective September 22, 2025, the cess has been scrapped and replaced with a flat 18% GST rate for small petrol and CNG cars under 4 metres. This has led to an 11% reduction in tax, leading to a price drop by ₹64,000–₹1.11 lakhs depending on the variant. For the Fronx, this makes it an even stronger competitor to rivals like the Hyundai Venue, Tata Nexon, and Kia Sonet (sub-4m petrol trims).

The Tata Nexon is one of the best-selling compact SUVs in India. It is loved for its bold styling, safety credentials, and versatile powertrain options. It is offered with 1.2-litre turbo-petrol, 1.5-litre diesel, and factory-fitted CNG variants, making it suitable for a wide range of buyers.With the implementation of GST 2.0 from September 22, 2025, Nexon buyers are set to enjoy lower ex-showroom prices. This is because small cars and SUVs under 4 metres in length now attract only 18% GST with no cess, compared to the earlier structure of 28% GST plus 1% cess (petrol/CNG) and 28% GST plus 3% cess (diesel). This has resulted in a price drop across all Nexon variants.

The Maruti Suzuki Dzire has been India’s best-selling compact sedan for years, offering buyers a blend of practicality, efficiency, and affordability. Built on the same platform as the Swift, the Dzire adds the extra boot space and comfort that many families look for, without straying far from the affordability and efficiency of a hatchback.With its refined 1.2-litre petrol engine, strong fuel efficiency figures, and Maruti’s reputation for low maintenance costs, the Dzire remains the go-to choice for buyers in the compact sedan segment.Now, the Dzire has become even more appealing thanks to the government’s recent revision of the Goods and Services Tax (GST). Effective September 22, 2025, the GST applicable to small cars—vehicles under 4 metres in length with petrol/CNG engines up to 1.2 litres—has been reduced from 28% plus cess to a flat 18% with no cess.This tax revision has translated into a notable reduction in ex-showroom prices across the Dzire’s entire variant line-up.

The Tata Punch has become a household name in India’s micro-SUV segment, thanks to its rugged stance, compact footprint, and excellent safety rating. Positioned below the Nexon, the Punch caters to buyers looking for an affordable SUV with the convenience of petrol and factory-fitted CNG options.With the introduction of the GST 2.0 reforms from September 22, 2025, Punch buyers will enjoy lower prices across all trims. The simplified tax regime reduces the burden on small cars under 4 metres in length with petrol and CNG powertrains. Earlier, these cars attracted 28% GST plus 1% cess (29% total). With the new GST policy, the cess is eliminated, and only a flat 18% GST is applied. This has resulted in a price drop across the Punch variants.

The Volkswagen Virtus has become a popular choice in India’s premium sedan market, combining German engineering, sharp styling, and a spacious cabin with modern features. Built on the MQB-A0-IN platform, it offers two engine options — a 1.0-litre TSI petrol for efficiency and a 1.5-litre TSI petrol with Active Cylinder Technology for added performance. Positioned as a rival to the Honda City, Hyundai Verna, and Škoda Slavia, the Virtus is praised for its driving dynamics and solid build quality.Until recently, though, the Virtus was burdened by India’s older GST framework. As a mid-size sedan (over 4 metres, up to 1.5L engines), it attracted 28% GST and 17% cess, taking the total tax to 45%. This pushed ex-showroom prices higher, particularly for top-end 1.5 TSI DSG variants, limiting affordability in a highly competitive segment.With the rollout of GST 2.0, effective from September 22, 2025, the cess has been eliminated, and mid-size sedans like the Virtus are now taxed at a flat 40% GST rate. This 5% reduction has brought a significant price cut of ₹40,000–₹1.63 lakhs, making the Virtus more appealing to buyers looking for a premium sedan at a better value.

The Volkswagen Tiguan R-Line stands as one of the most premium SUVs in Volkswagen’s Indian lineup. With bold European styling, a feature-rich cabin, and a powerful 2.0-litre turbo-petrol engine paired with 4MOTION all-wheel-drive, it caters to buyers who demand performance and luxury in equal measure. Known for its robust build quality and refined driving dynamics, the Tiguan R-Line has been a popular choice for those seeking a step above mainstream mid-size SUVs.Until recently, though, the Tiguan R-Line was burdened by one of the highest tax rates in the Indian automotive market. As a large SUV with an engine over 1,500cc and a length above 4 metres, it fell under the 50% tax bracket (28% GST + 22% cess). This significantly inflated its ex-showroom price, making it less accessible despite its premium credentials.With the introduction of GST 2.0, effective from September 22, 2025, this tax structure has been simplified. SUVs like the Volkswagen Tiguan R-Line are now taxed at a flat 40% GST, with the cess component removed altogether. This 10% reduction in tax has led to a major price cut of ₹3.26 lakhs, making the Tiguan R-Line a far more attractive proposition for luxury SUV buyers.

The Volkswagen Taigun has made a strong impression in India’s mid-size SUV segment, offering German engineering, a bold design, and a feature-rich cabin. Built on Volkswagen’s MQB-A0-IN platform, the Taigun shares its underpinnings with the Škoda Kushaq but stands apart with its distinct styling and brand appeal. It offers two turbocharged petrol engines a 1.0-litre TSI for efficiency and everyday usability, and a 1.5-litre TSI with cylinder deactivation technology for those who value performance.Under the older GST structure, SUVs like the Taigun attracted 28% GST and 17% cess, totalling 45%. This significantly inflated ex-showroom prices, particularly for higher-end trims, and reduced cost competitiveness in a segment that already sees tough rivalry from the Hyundai Creta, Kia Seltos, and Honda Elevate.With the rollout of GST 2.0, effective September 22, 2025, the cess has been abolished, and all mid-size SUVs are now taxed at a flat 40% GST rate. This 5% reduction in tax has resulted in a price drop of ₹40,000–₹1.63 lakhs across Taigun variants, making it even more competitive against its Korean and Japanese rivals.

The Škoda Slavia has established itself as a premium mid-size sedan in India, blending European design with practical everyday usability. Known for its sharp styling, refined interiors, and safety-focused engineering, the Slavia competes in a space traditionally dominated by Japanese and Korean rivals. With both 1.0-litre and 1.5-litre turbocharged petrol engines, it offers a wide range of choices from efficiency-focused commuters to performance-driven enthusiasts all while upholding Škoda’s reputation for quality.Until recently, however, Slavia’s ex-showroom pricing was weighed down by India’s GST and cess structure. As a petrol sedan over 4 metres in length, it fell under the mid-size category, attracting 28% GST and 17% cess, bringing the total tax to 45%. This significantly inflated its pricing, especially for top-spec trims.With the rollout of GST 2.0, effective September 22, 2025, the cess has been removed and replaced by a flat 40% GST rate. This 5% reduction in tax has brought a meaningful price drop by nearly ₹37,000–₹63,000, depending on the variant. For a premium sedan like the Slavia, this makes it more attractive against rivals such as the Hyundai Verna, Honda City, and Volkswagen Virtus.

The Škoda Kushaq is one of the brand’s most successful models in India, designed specifically for the country’s mid-size SUV market. With sharp European styling, high-quality interiors, and a choice of two turbocharged petrol engines — the 1.0-litre TSI and the more powerful 1.5-litre TSI the Kushaq appeals to buyers looking for performance, comfort, and premium build quality in a practical SUV package.Until recently, however, the Kushaq was subject to high taxation under India’s GST system. Being over 4 metres long, both its 1.0-litre and 1.5-litre petrol variants fell into the mid-size car/SUV tax bracket, attracting 28% GST and 17% cess, totalling 45%. This raised the ex-showroom prices and placed it at a disadvantage in a price-sensitive segment.With the introduction of GST 2.0, effective from September 22, 2025, the cess has been removed and replaced with a flat 40% GST for mid-size cars and SUVs. This change has resulted in a price drop by around ₹36,000–₹65,000, depending on the variant, making the Kushaq even more appealing against rivals such as the Hyundai Creta, Kia Seltos, and Honda Elevate.

The Škoda Kylaq has been designed as a compact SUV for India, combining European styling with practical dimensions and a modern 1.0-litre turbo-petrol engine. Positioned to appeal to urban buyers and young families, it offers the premium touch that Škoda is known for, but in a smaller, more accessible package. With SUV-inspired looks and a robust feature list, the Kylaq caters to those wanting sophistication and everyday usability in one vehicle.Until recently, however, cars like the Kylaq carried a higher tax burden under the old GST framework. Being a petrol car under 4 metres with an engine capacity of 1.0 litres, it fell into the small car tax bracket, attracting 28% GST plus 1% cess, totalling 29%. This directly inflated its ex-showroom price and made it less affordable compared to what buyers might expect in the entry SUV space.With the rollout of GST 2.0, effective from September 22, 2025, this structure has been rationalised. The cess has been eliminated, and the Kylaq now falls under a simplified 18% GST slab. This results in an 11% reduction in total tax, translating into a price drop of ₹70,000–₹1.19 lakhs depending on the variant. The Kylaq now offers even better value, strengthening its competitive edge in the compact SUV category.