Hours after the Goods and Services Tax came into effect, top automaker Maruti Suzuki India (MSI) announced that it has slashed prices of its models by up to 3 per cent with immediate effect in order to pass on GST benefit to its customers. In a statement today, the company said it has transmitted the entire benefit of GST rates on vehicles to its buyers.
"The ex-showroom prices of Maruti Suzuki models have come down by up to 3 per cent. The rate of reduction varies across locations depending on VAT rates applicable prior to GST," MSI said.
The company, however, has hiked prices of diesel variants of Ciaz and Ertiga models with smart hybrid technology by over Rs 1 lakh because of withdrawal of tax concessions on mild hybrid vehicles under the GST framework. The price hike on the models will also vary from state to state.
The new prices are effective from July 1, 2017, the company said.
The company sells a range of vehicles from Alto 800 to S-Cross that were priced between Rs 2.46 lakh to Rs 12.03 lakh (ex-showroom Delhi).
The GST rate on cars varies from segment to segment but most of them will have lower tax rate under the new tax regime. Hybrid cars will, however, be taxed at higher rate under the GST.