Maruti Suzuki India Ltd. has announced new car prices to pass on full benefit of GST rate cuts to consumers.
While the entry-level Alto K10 is now cheaper by ₹1,07,600 at ₹3,69,900, the Grand Vitara is cheaper by the same amount at ₹10,76,500, according to an exchange filing on Thursday.
On 4 September 2025, the government reduced GST rates on hundreds of items — from soaps to small cars — in India's biggest indirect tax reforms since Goods and Services Tax was first introduced on 1 July 2017.
That was a result of GST rationalisation from four tax slabs (5%, 12%, 18% and 28%) to two (5% and 18%). Nearly all essential items are in the 5% tax bracket while discretionary goods attract 18% GST. A new 40% slab has also been introduced for tobacco products and luxury goods.
The rate-setting GST Council, as part of its rationalisation move, also decided to define what a car is and how it will be taxed.
According to the government, “small cars” are less than 4 metres in length with petrol engines less than 1,200 cc and diesel engines less than 1,500 cc. Such four-wheelers will be taxed at 18%.
{{/usCountry}}According to the government, “small cars” are less than 4 metres in length with petrol engines less than 1,200 cc and diesel engines less than 1,500 cc. Such four-wheelers will be taxed at 18%.
{{/usCountry}}“Bigger cars” or “luxury cars” are more than 4 metres in length with petrol engines bigger than 1,200 cc and diesel engines bigger than 1,500 cc. Such four-wheelers will be taxed at 40%.
This definition extends to hybrid cars as well. Electric cars, like all electric vehicles, continue to attract the lowest 5% GST rate.
Maruti Suzuki New Car Prices After GST Rate Cut
Maruti Suzuki India Ltd., the country's largest carmaker, is seen as the biggest beneficiary of this rationalisation, for it still draws most of its volumes from small cars. Against that backdrop, here's a model-wise list new starting prices:
While the Jimny is shorter than 4 metres, it has 1.5-litre petrol engine. Similarly, while the Ertiga has a 1,198 cc petrol engine, it's footprint stands at 4.3 metres. A “small car” has to fulfil all parameters as explained above to enjoy 18% GST. Any deviation puts the car in the 40% bracket.
“The restructuring [of GST] will increase competitiveness of Indian products and the opening of trade borders will bring in the necessary competition,” Maruti Suzuki Chairman RC Bhargava had told Reuters on 18 August, days after Prime Minister announced the GST reforms from the ramparts of the Red Fort on Independence Day.
“Competition, combined with your ability to produce and sell at lower prices, makes for the best efficiency.”
Maruti Suzuki Victoris Price After GST Rate Cut
To be sure, prices of Maruti Suzuki's latest model, the Victoris compact SUV, are inclusive of the GST rate cuts that come into effect on 22 September.
The prices for the Victoris SUV, which will sit between the Fronx and Grand Vitara in Maruti Suzuki's scheme of things, start from ₹10,49,900 and go up ₹19,98,900 for the top-spec strong hybrid variant. The car will be sold in Maruti Suzuki's Arena showrooms.