GST Reform: Diwali Gift for Car Buyers – See How Much Creta, Venue, Exter, and i20 Could Get Cheaper

The government is considering simplifying the GST structure and reducing tax rates, which could bring significant price relief for small and mid-size cars. Buyers planning to purchase cars like Hyundai Creta, Venue, Exter, and i20 this Diwali may benefit from this move.

How Small Cars Will Benefit

Currently, small cars and hatchbacks carry 28% GST plus 1% cess

, making the effective tax about 29%. If GST is reduced to 18%, customers could save roughly 10% of the car’s price.

For example:

• A car priced at Rs 5 lakh currently costs Rs 6.45 lakh with taxes. After GST reduction, it could drop to around Rs 5.90 lakh, saving about Rs 55,000.

Expected Price Reduction on Popular Models

Car Model Current Price Estimated GST Saving Price After GST Cut

Hyundai Exter	Rs 5,99,900	Rs 59,990	Rs 5,39,910
Hyundai i20	Rs 7,50,900	Rs 75,000	Rs 6,75,900
Hyundai Venue	Rs 7,94,100	Rs 79,400	Rs 7,14,700
Hyundai Creta	Rs 11,10,900	Rs 1,11,000	Rs 9,99,900

Who Will Benefit the Most

This reduction will mainly help middle-class buyers looking to purchase new cars, especially hatchbacks and compact SUVs. Savings could range from Rs 60,000 to Rs 1.1 lakh

depending on the model.

With GST reforms expected to simplify tax slabs, Diwali could bring an affordable car shopping opportunity for many families.