What is GST 2.0 for Vehicles
GST 2.0 refers to the revised Goods & Services Tax rates + removal/merging of “cess” for vehicles, introduced 22 September 2025. Key changes include:
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Simplification of tax slabs. www.bajajfinserv.in+2www.bajajfinserv.in+2
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Removal of compensation cess in many categories; taxes become a single rate instead of “GST + cess.” www.bajajfinserv.in+1
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Lower GST for small cars and two-wheelers, higher rate for bigger/luxury vehicles (but still often lower total than before because of cess removal) www.bajajfinserv.in+2The Times of India+2
| Vehicle / Brand | Approximate Savings After GST Changes |
|---|---|
| Mahindra ICE SUVs / larger models | Up to ~ ₹2.5-2.56 lakh savings. (The Economic Times) |
| MG SUVs (Astor, Hector, Gloster, etc.) | Up to ~ ₹2.83 lakh off. (The Times of India) |
| Honda (Amaze, City, Elevate) | Price cuts up to ₹1.2 lakh for some models. (The Economic Times) |
| Hyundai models | Cuts ranging ~ ₹70,000 to ~ ₹2.40 lakh depending on model. (Navbharat Times) |
| Tata Motors (mass market lineup) | Up to ₹2 lakh total benefit combining GST cut + festival offers. Especially on Nexon, Harrier, Safari, etc. (The Times of India) |
| Smaller/mass-market cars and two-wheelers | Savings ranging from ₹30,000-₹1.5-2 lakh depending on model. (www.ndtv.com) |
How to Estimate the Discount for Any Car
If you want to figure out for a specific car, here’s how you can approximate:
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Find the old ex-showroom price, under the old tax regime (GST + cess).
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Identify the vehicle category:
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Is it a “small car” (petrol ≤1200cc, diesel ≤1500cc, length <4m)?
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Is it a larger car / SUV / luxury?
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Two-wheeler or EV etc.
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Find what the old combined tax (GST + cess) was vs the new rate under GST 2.0. For example, many small petrol cars had ~ 29-31% including cess; under GST 2.0 they are at 18%. www.bajajfinserv.in+2Angel One+2
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Apply the difference: New price ≈ old price × (1 + new tax %) / (1 + old tax %). The reduction is the difference in ex-showroom price.
