GST effect : Maruti Suzuki cuts prices on selected vehicles up to 3%

NEW DELHI: As the new regime kicks in, automaker Maruti Suzuki on Saturday announced a price cut on select vehicles by up to 3% to pass on GST benefit to customers.

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. The GST rates will bring in tax parity across the country and will lead to a regime of 'one nation, one tax', say auto makers.