The GST rates for Maruti Suzuki cars in India have recently changed as part of a major GST reform. As of September 2025, Maruti Suzuki and all other passenger car manufacturers benefit from simplified and lower tax rates, which brings significant savings for buyers and clarity to automobile taxation.
Updated GST Rates for Maruti Suzuki Cars
From September 22, 2025, Maruti Suzuki cars fall under two new, streamlined tax brackets:
- Small cars (under 4 metres, petrol up to 1200cc, diesel up to 1500cc): 18% GST (down from the earlier 29-31%) and all cess charges removed.
- Bigger cars (over 4 metres or engines above 1500cc) and SUVs: 40% GST (integrated, with no additional cess).
- Electric vehicles (all types): Remain at 5% GST.
- Hybrid cars (under 4 metres): 18% GST.
Popular Maruti Suzuki models such as Alto K10, Swift, Wagon R, Dzire, Baleno, Fronx, Ignis, and S-Presso now attract the lower 18% GST rate, resulting in lower ex-showroom prices. Larger models like the Ertiga, XL6, Grand Vitara, and Invicto are grouped in the higher GST bracket (either 18% or 40% depending on size and engine capacity).
Full Table: Latest Maruti GST Brackets
| Car Category | Old Tax (GST + Cess) | New GST Rate (2025) |
|---|---|---|
| Small cars <4m, petrol <1200cc, diesel <1500cc | 29%-31% (28% + 1-3% cess) | 18% |
| Larger cars (>4m or engine >1500cc), SUVs, premium | Up to 50% | 40% |
| Electric vehicles | 5% | 5% |
| Hybrid cars <4m length | 28% | 18% |
| Hybrid cars >4m length | Up to 43% | 40% |
What the GST Rate Change Means for Maruti Suzuki Buyers
- Price Reduction: The new GST rates have prompted Maruti Suzuki to reduce the ex-showroom prices across its lineup. Small hatchbacks and compact sedans are notably more affordable, while even premium and SUV models get moderate price cuts.
- Insurance Savings: Car insurance, calculated on the GST-included ex-showroom price, will also become cheaper with the revised tax, further benefiting buyers.
- Market Impact: The reform is designed to spur new car demand, encourage upgrades, and align taxation with global norms, supporting India’s growing automobile sector.
How Much Can Buyers Save?
Depending on the model, discounts range from ₹55,000 to over ₹1,30,000 compared to the pre-GST 2.0 pricing. For instance, the Maruti Alto K10 is now cheaper by over ₹1 lakh, while SUVs like the Grand Vitara may be up to ₹1.1 lakh less expensive than before.
Conclusion
India’s new GST regime has slashed the tax rates for small cars to 18%, making Maruti Suzuki’s most popular models cheaper from September 2025. Larger cars and SUVs now see a single 40% GST rate, eliminating cess and complexity. Shoppers for new Maruti Suzuki vehicles can now benefit from both reduced tax and insurance costs. As that is a major relief for urban Indian families and individual buyers alike.
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