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GST: Maruti announces price-cuts of up to 3 per cent for select models

The country’s largest automaker, Maruti Suzuki has announced price cuts of up to 3 per cent on the ex-showroom prices of several models across its line-up. This makes the company the latest addition to the growing bandwagon of auto manufacturers who have directly passed on the tax benefits received under the new GST system to the consumer.

In its statement, MSI has said that the actual reduction of price will vary according to the location, depending on the local VAT rates applicable before the introduction of the GST.

Also Read: Toyota Kirloskar Motor Revises Product Prices; Passes Benefits Of GST To Customers

While the prices of most models have gone down, the prices of the SHVS (Smart Hybrid Vehicle System) equipped Ertiga and Ciaz have gone up by over a lakh. The statement mentions that this change was necessitated by the withdrawal of the tax concessions on mild-hybrid vehicles. This has caused a simultaneous increase in the tax slab for hybrid vehicles from the previous 30.3 per cent to 43 per cent under the GST regime.

Kenichi Ayukawa, MD & CEO of MSI, congratulated the policy makers on the introduction of the GST, heralding it as an epoch making reform. “While GST will directly improve efficiencies and ease of business, its significance goes much beyond that. It is a powerful example of India’s commitment to reform, and how all stakeholders can come together to resolve complex issues in the interest of growth and development of the country.”

The company said that the new prices would be applicable from 1st July 2017.

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