Under the GST 2.0 regime, compact cars see the biggest gains, but larger SUVs and luxury vehicles are not left out. While these models have been moved into the highest tax bracket of 40%, they still register a price drop.
That’s because under the previous GST structure, they attracted a 28% base tax plus an additional cess of 17-22%, pushing the total burden to 45-50%.
MG Motor India is among the first to announce revised prices across its ICE portfolio. The Astor, earlier taxed at 45%, now falls under the 40% bracket, leading to a reduction of Rs 54,000. The Hector, which previously attracted 45% on petrol variants and 50% on diesel, now sees both versions taxed at 40%, cutting prices by up to Rs 1.49 lakh. The Gloster, earlier in the 50% slab, will also benefit from the lower 40% rate, with prices reduced by Rs 3.04 lakh.
Vinay Raina, Chief Commercial Officer, JSW MG Motor India, said, “The government’s decision to rationalise GST is a good move that directly addresses the affordability challenge for car buyers and builds positive consumer sentiment. By extending the full benefit of this reform across our SUV portfolio, we want to ensure customers experience the immediate value of this change. At a time when demand is set to strengthen, especially around the festive season, our focus is on making our SUVs – Astor, Hector, and Gloster – more accessible and attractive. More than just passing on the benefits, this move reinforces trust, enables easier ownership, and encourages more customers to embrace MG.”