How India’s GST Overhaul Will Make Cars Cheaper This Diwali”
India's GST Overhaul : Big Savings Ahead for Small Car Buyers --- What’s Changing? India is preparing for a major Goods and Services Tax (GST) reform. The government is planning to replace the current four-tier GST system (5%, 12%, 18%, 28% + cess) with a simplified two-slab structure: 5% and 18%. This is expected to be rolled out by Diwali 2025 . --- Impact on Small Cars Currently, small petrol cars (up to 1200cc, ≤4m) are taxed at 28% GST + 1% cess (29%). Diesel cars carry 28% + 3% cess (31%). Under the new plan, they will fall under a flat 18% GST rate. Estimated Savings: Maruti Wagon R : ~₹60,000 Maruti Baleno : ~₹75,000 Hyundai Creta : ~₹55,000 Mahindra XUV700 : ~₹1.15 lakh Monthly EMIs may reduce by ₹600–₹2,000, depending on the model. --- Economic Ripple Effects Auto stocks surge: Maruti Suzuki , Tata Motors , and Hyundai shares jumped after the announcement. Boost to GDP : Experts predict a 0.6% rise in GDP growth within a year. Inflation relief: Lower tax burden could...