Maruti passes on GST benefit to customers, cuts prices of its cars by up to 3%
GST taxes small and mid-sized cars at 28%. Small and mid-sized cars were earlier taxed at between 30 to 50%.? Photograph: (DNA)
Maruti has cut the prices of its cars by up to 3 per cent.
The cut passes on the benefit of a drop in tax rates on cars under GST to customers.
GST taxes small and mid-sized cars at 28%.
Small and mid-sized cars were earlier taxed at between 30 to 50%.
A statement from the company read: "Maruti Suzuki India Limited today announced that the Company has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki models have come down by upto 3%. The rate of reduction varies across locations depending on the VAT rates applicable prior to GST."
Maruti has however hiked the prices of its Smart Hybrid Ciaz diesel and Smart Hybrid Ertiga diesel cars by over Rs 1 lakh, owing to the withdrawal of tax concessions on mild hybrid vehicles.
The change in prices is effective from July 1, 2017.