As the new indirect tax regime, GST, was formally rolled out by the Union government from Friday midnight, auto giant Maruti Suzuki took the lead to pass on the benefits of the tax reform to its consumers by announcing a price cut on select vehicles by up to 3 percent.
In a statement, Maruti Suzuki India (MSI) said it has transmitted the entire benefit of GST rates on vehicles to its buyers. "The ex-showroom prices of Maruti Suzuki models have come down by up to 3 per cent. The rate of reduction varies across locations depending on VAT rates applicable prior to GST," MSI said.
The company, however, raised the prices of its Ciaz and Ertiga with mild hybrid technology by over Rs 1 lakh. The price hike on the sedan and MPV is due to the withdrawal of tax concessions on mild hybrid vehicles under the GST framework. The price hike on the models will also vary from state to state.