The Renault Kwid has established itself as one of the most accessible and stylish entry-level hatchbacks in the Indian market. Compact yet bold in design, it combines SUV-inspired looks with practicality and affordability, making it a popular choice among first-time buyers and budget-conscious families. Its 1-litre petrol engine, offered with both manual and AMT transmission options, ensures the Kwid delivers efficiency without compromising on convenience.Until recently, small petrol cars like the Kwid were taxed at 28% GST and 1% cess, bringing the total to 29%. This indirect tax burden pushed up the ex-showroom price, making the car slightly more expensive for buyers in the entry-level segment, where affordability matters most.With the implementation of GST 2.0, effective September 22, 2025, the cess has been removed, and the Kwid now falls under a simplified 18% GST slab. This results in an 11% tax reduction, which translates into a price drop of around ₹40,000–₹54,000 depending on the variant. The Renault Kwid is now even more competitive against rivals like the Maruti Alto K10.

The Maruti Suzuki Ignis has carved a niche for itself as a stylish urban hatchback with SUV-inspired design cues. Compact in dimensions but bold in appearance, the Ignis is a favourite among younger buyers and city dwellers who want individuality without compromising on practicality. Equipped with a reliable 1.2-litre petrol engine, it combines Maruti’s hallmark efficiency with peppy performance, making it an ideal daily commuter.Under the previous GST system, however, the Ignis was taxed at 28% GST and 1% cess, totalling 29%. This raised its ex-showroom price and reduced its overall affordability, particularly in a segment where budget-conscious buyers dominate.With the rollout of GST 2.0, effective September 22, 2025, the cess has been removed, and the Ignis now falls under a simplified 18% GST slab. This represents an 11% reduction in tax, which leads to a price drop by ₹49,000–₹70,000 depending on the variant. The Ignis now becomes even more appealing for first-time car buyers and urban professionals seeking a stylish, efficient hatchback.

The Maruti Suzuki Baleno has become one of India’s best-selling premium hatchbacks, combining practicality, efficiency, and modern features in a stylish package. With its spacious interiors, refined 1.2-litre petrol engine, and the option of a factory-fitted CNG kit, the Baleno is equally popular among city commuters and budget-conscious families. Its wide service network and Maruti’s brand reliability further strengthen its position in the market.Until recently, small cars like the Baleno were taxed under the old GST system at 28% GST plus 1% cess, bringing the total to 29%. This pushed up ex-showroom prices, particularly for higher trims and CNG models, which cater to value-focused buyers.With the introduction of GST 2.0, effective from September 22, 2025, the cess has been scrapped, and the Baleno now falls under the flat 18% GST rate. This 11% reduction in tax results in a price drop of ₹57,000–₹84,000, depending on the variant, making the Baleno even more competitive in its segment against rivals like the Hyundai i20 and Tata Altroz.

The Honda Elevate has quickly gained popularity in India’s mid-size SUV market, thanks to its bold styling, spacious cabin, and the proven 1.5-litre i-VTEC petrol engine. Built for urban families and young professionals, the Elevate combines Honda’s reputation for refinement with the practicality of a modern SUV. Positioned as a rival to segment leaders like the Hyundai Creta and Kia Seltos, it offers a premium driving experience at a competitive price.Until recently, however, SUVs like the Honda Elevate were burdened with a steep tax structure. Under the old GST system, mid-size petrol cars and SUVs longer than 4 metres with engines up to 1.5 litres attracted 28% GST plus 17% cess, bringing the total to 45%. This meant buyers paid significantly more in taxes, inflating the ex-showroom price.With the introduction of GST 2.0, effective September 22, 2025, the cess has been scrapped and replaced with a flat 40% GST rate. This results in a 5% reduction in tax, directly resulting in a price cut of ₹8,000–₹58,000, depending on the variant. This makes the Elevate a stronger value proposition for buyers looking to own a stylish and reliable mid-size SUV.

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.