New Delhi, 22 August (Kiran News). Buying a car will become more affordable this Diwali. The Modi government is planning to reduce GST on several items, including small cars. This move is expected to make it easier for the middle class to buy cars. Hyundai, the country’s second-largest carmaker, sees high demand for models like Creta, Venue, and Exter. Creta is also the highest-selling SUV in its segment nationwide.
If the GST is reduced from 28% to 18%, there could be a direct 10% tax cut. However, the government has not yet officially announced the exact rate cut.
Current Tax on Cars Is 29%
Let’s understand how GST affects car prices. If the ex-factory price of a small car is ₹5,00,000, with 28% GST and 1% cess, the total tax comes to 29%. This raises the price to ₹6,45,000. If GST is reduced to 18% (plus 1% cess, making it 19%), the new price will be ₹5,90,000, offering a benefit of ₹55,000 to the buyer. Similarly, if a small car costs ₹10 lakh, customers can save up to ₹1,10,000.
How Much Will You Save on Hyundai Cars if GST Drops from 28% to 18%?
| Model | Current Ex-Showroom Price | 29% Tax (28% GST + 1% Cess) | 19% Tax (18% GST + 1% Cess) | Potential Savings |
|---|---|---|---|---|
| Grand i10 Nios | ₹5,98,300 | ₹1,73,507 | ₹1,13,677 | ₹59,830 |
| Exter | ₹5,99,900 | ₹1,73,971 | ₹1,13,981 | ₹59,990 |
| Aura | ₹6,54,100 | ₹1,89,689 | ₹1,24,279 | ₹65,410 |
| i20 | ₹7,50,900 | ₹2,17,760 | ₹1,42,671 | ₹75,089 |
| Venue | ₹7,94,100 | ₹2,30,288 | ₹1,50,879 | ₹79,409 |
| Verna | ₹11,07,400 | ₹3,21,146 | ₹2,10,406 | ₹1,10,740 |
| Creta | ₹11,10,900 | ₹3,22,161 | ₹2,11,071 | ₹1,11,090 |
| Alcazar | ₹14,99,000 | ₹4,34,709 | ₹2,84,810 | ₹1,49,899 |
| Tucson | ₹29,26,800 | ₹8,48,771 | ₹5,56,092 | ₹2,92,679 |
If the GST is reduced from 28% to 18%, there will be a significant tax saving on Hyundai cars. For example, the Grand i10 Nios, which currently has an ex-showroom price of ₹5,98,300 with ₹1,73,507 tax, would attract only ₹1,13,677 tax at the new rate, saving the buyer around ₹59,830. Similarly, for Creta, customers could save around ₹1,11,090, and for Tucson, the benefit could go up to ₹2,92,679.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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