GST 2.0: These 7 compact SUVs to gain maximum from new tax regime

Under the new GST 2.0 regime, the small SUVs in India have become relatively affordable as they now attract a lower tax of 18%.

Mainak Das
Published22 Sep 2025, 12:48 PM IST
Under the new GST 2.0 regime, the small SUVs in India have become relatively affordable as they now attract a lower tax of 18%.
Under the new GST 2.0 regime, the small SUVs in India have become relatively affordable as they now attract a lower tax of 18%.(Photo: Reuters)

The GST 2.0, which brings the most significant revision in the tax structures since the implementation of the Goods and Services Tax (GST), has kicked in on September 22. This has brought down the total tax incidence for the passenger vehicles by introducing a simpler tax structure. Interestingly, the introduction of GST 2.0 has coincided with the first day of the nine-day Navratri festival, which is considered one of the biggest festivals of India.

With the cars becoming more affordable owing to the GST 2.0 price cuts announced by the automakers, clubbed with the festive season discounts, the Indian auto industry is expecting to see a major boost in sales numbers over the next few weeks. While the small cars will get a shot in the arm with the tax cuts and festive discounts, the compact SUV space is also expected to witness a major boost in sales.

The SUVs have replaced the hatchbacks in India to become the new driving force of the Indian passenger vehicle market. Buoyed by the price cuts under the GST 2.0 paired with festive offers, the models such as Tata Punch, Tata Nexon, Maruti Suzuki Brezza, Hyundai Venue, Kia Sonet, Mahindra XUV 3XO, Renault Kiger, etc., come offering good deals to the consumers.

Here is a quick look at the top 7 compact and sub-compact SUVs that will gain maximum benefits from the new GST 2.0 regime.

Tata Punch

Tata Punch became one of the bestselling cars in India within a short span after its launch. The compact design with sturdy build and a host of upmarket features, practicality on offer make it an appealing product to many. A wider choice of powertrain options further enhances its appeal. The Punch is now available at a starting price of 5.49 lakh (ex-showroom), after a GST price cut of 71,000.

Tata Nexon

The one SUV that promises to offer a comprehensive package to the consumers, including premiumness, performance, value-for-money, etc., is the Nexon. The Tata Nexon is one of the leading revenue churners for the brand. The SUV received up to 68,000 price cut under the new GST regime, which has effectively slashed its starting price to 7.32 lakh (ex-showroom).

Maruti Suzuki Brezza

Maruti Suzuki Brezza is one of the few models that has democratised the SUV game in the Indian market. The SUV comes as a long-standing popular model in the Indian market, and under the new GST regime, it received a price cut of up to 43,000, which has brought down its starting price to 8.26 lakh (ex-showroom).

Hyundai Venue

Hyundai's take in the highly competitive compact SUV space, the Venue, rivals some tough models. Following the GST revision, the South Korean automaker slashed the price of the Venue by up to 68,000. With this price reduction, the Hyundai Venue is now available at a starting price of 7.26 lakh (ex-showroom).

Kia Sonet

The Kia Sonet is the most affordable model from Kia in India. Launched after the brand's first car in India, the Seltos, the Sonet has quickly grabbed a lot of eyeballs and become one of the best sellers. The Kia Sonet has received a price cut of 70,000 under the new GST regime. With this, the starting price of the SUV is now 7.30 lakh (ex-showroom).

Mahindra XUV 3XO

Mahindra XUV 3XO is Mahindra's take in this segment, where Tata Nexon, Hyundai Venue, Kia Sonet, etc., are present. The Mahindra XUV 3XO is also the most affordable car from the brand that comes with a sharp design, upmarket features and a well-performing powertrain. The SUV also comes with a 5-star BNCAP safety rating. The SUV is available at a starting price of 7.28 lakh after a price cut ranging up to 71,000.

Renault Kiger

Renault Kiger is the only SUV available from the French auto giant in the Indian market at present. The SUV recently received a major update. Under the new GST regime, the Kiger's pricing has been slashed by up to 54,000, which reduced its starting price to 5.76 lakh (ex-showroom).

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