India’s GST 2.0 reform, effective 22 September 2025, cut the GST on most small cars to 18% and on larger cars and SUVs to a flat 40%, boosting first‑time buyer shares for major manufacturers. The tax reset has lifted demand in the budget‑friendly segment, with Maruti Suzuki, Hyundai and Tata Motors reporting higher first‑time buyer percentages.
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Key Takeaways
The reform lowered the GST on most small cars to 18% from about 28% plus cess, effective 22 September 2025.
The reform set a flat 40% GST rate for larger cars and SUVs, down from an effective 43‑50% earlier including compensation cess, effective 22 September 2025.
Maruti Suzuki’s first‑time buyer share rose to about 48% between September 2025 and February 2026, up from 40% in FY25.
Hyundai’s first‑time buyer share increased from 39.7% (January‑August 2025) to 41.8% (September‑December 2025).
Primary source
Read the full article at Pune MirrorThis summary was published on VATfaqs.com on 22 March 2026. It relates to VAT developments in India. The original source is Pune Mirror.
