GST on Cars Above ₹10 Lakhs: Hyundai Creta, XUV700, Tata Harrier Among Cheaper Big Cars

The rollout of GST 2.0 has provided a major boost to the automobile sector, making vehicles across categories more affordable. While small cars now attract lower tax rates, big cars and SUVs are also seeing a reduction in GST, benefiting buyers nationwide.

Under the new regime, all mid-size and large cars, defined as vehicles with engine capacity above 1500 cc or length exceeding 4 meters, will attract a GST rate of 40%.

Which cars are affected?

All mid-size and large cars with engines over 1500 cc or lengths above 4 meters now have a GST of 40%. This includes SUVs, MUVs, MPVs, and XUVs with high ground clearance. These vehicles do not have any extra compensation taxes.

Popular Big Cars and SUVs in the 40% GST Slab

Some well-known models falling under this category include:

• Hyundai Creta
• Maruti Grand Vitara
• Mahindra Scorpio
• Mahindra XUV700
• Tata Harrier
• Tata Safari
• Mahindra Thar

All these vehicles exceed 4 meters in length and are classified under the mid-size and large car GST slab of 40%.

Diesel and hybrid vehicles now have a streamlined tax between 18-40%, depending on size, while green vehicles and fuel cell cars have GST reduced to 5% to promote clean mobility. Auto components and spare parts have been unified at 18%, replacing multiple earlier slabs.

Industry experts say the simplified GST 2.0 rates are expected to make big cars and SUVs more affordable, boost demand in the mid-size and luxury segments, and provide a much-needed push for the Indian automobile market. This structured and simplified tax regime is also aimed at creating transparency in vehicle pricing and improving affordability for buyers.

The GST 2.0 reform represents a win for consumers and industry alike, ensuring clarity, uniformity, and reduced tax burdens across vehicle categories, especially for mid-size, large cars, and SUVs.