If you are a fan of SUVs and 4x4s, then the new GST reform may have you excited. Under the new uniform GST, big SUVs like the Mahindra Thar Roxx, Toyota Fortuner and even the Land Rover Defender are set to become more affordable.
Compared to the current 28 percent GST + 20-22 percent Cess, the tax liability on a new SUV purchase will see up to a 10 percent reduction after the uniform 40 percent GST comes into place on September 22, 2025. If these three popular models have been on your wish list, then this cost estimation will give you a fair idea of what to expect in terms of ex-showroom cost.
1. Mahindra Thar Roxx:
The Mahindra Thar Roxx is one of the most sought-after rugged SUVs in the market, with waiting periods stretching up to 1.5 years. Priced between Rs 12.99 lakh and Rs 23.39 lakh ex-showroom, the pre-reform GST components added approximately Rs 6 lakh to Rs 7.5 lakh in taxes. After the uniform 40 percent GST comes into place, prices for the Roxx variants are expected to drop by 8-10 percent. The estimated price drops include up to Rs 1.3 lakh for the base MX3 variant and Rs 2.33 lakh for the top AX7L with 4×4 variants.
2. Toyota Fortuner:
Just like the Roxx, the Toyota Fortuner is infamously burdened with high taxes, including the 28 percent GST + and up to 22 percent Cess, bringing the pre-sale tax liability on a Fortuner to up to 50 percent. With the uniform GST now bringing this liability down by 10 percent in ex-showroom value, here are the estimated reductions. Currently, the Fortuner is priced between Rs 36.05 lakh (Petrol, 4×2) and Rs 44.72 lakh for the Diesel AT 4X4. After the uniform GST rate comes into place, it can be estimated that these prices would be slashed by up to Rs 3.60 lakh for the base petrol and Rs 4.47 lakh for the top 4×4 diesel automatic.
3. Land Rover Defender 110:
Those who have deeper pockets most often have the Defender SUV on their short list. Prices for the Defender start from Rs 1.05 crore ex-showroom for the 110 base model and go up to Rs 1.85 crore for the 110 X 5.0-litre Petrol. For this cost estimation, we will use these variants for our comparison. Previously having a 50 percent tax liability as part of the ex-showroom value, the drop in 10 percent via the uniform GST will bring the estimated ex-showroom cost of the Defender down by Rs 10.5 lakh on the base and Rs 18.5 lakh on the 110 X 5.0. However, in the case of the Defender, it is hard to ignore the 100 percent import duty that is levied by the government.
While relative to each SUV’s total ex-showroom value, the price drop on these highly sought-after dream machines is still estimated to be a considerable amount. Earlier feared to make luxury cars even more out of reach, the uniform 40 percent GST could prove to be a boon for the auto industry ahead of the upcoming festive season.