GST Price Cuts on 7-Seater SUVs in India: Mahindra XUV700, Toyota Fortuner & Others

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by

Himanshu
in ,

India’s SUV market has received a significant boost as the government announces GST price cuts on mass-market 7-seater SUVs, effective September 22, 2025. Buyers of popular models such as the Mahindra XUV700, Toyota Fortuner, Tata Safari, MG Gloster, and Skoda Kodiaq can now enjoy savings of up to ₹3.49 lakh.

These reforms come as part of the government’s efforts to rationalize the GST structure for larger vehicles, making premium SUVs more accessible to middle-class Indian consumers. In this detailed guide, we break down the new prices, affected models, key benefits, and FAQs to help buyers make informed decisions.

🔹 Understanding the GST Reforms

Earlier, large SUVs attracted high taxes under the old GST system:

  • GST Rate: 28%
  • Compensation Cess: 17–22%
  • Effective Tax: 45–50%

The new GST reform simplifies the structure:

  • Flat GST Rate: 40% for mass-market 7-seater SUVs
  • Compensation Cess Removed

This results in substantial price reductions for popular models, making them more affordable and attractive during the festive season.

🚙 7-Seater SUVs Affected by GST Price Cuts

1. Mahindra XUV700

  • Price Reduction: Up to ₹1.43 lakh
  • New Price Range: ₹13.99 lakh – ₹24.99 lakh
  • Key Features: ADAS safety features, premium interiors, tech-packed trims
  • Impact: Price reduction benefits buyers of both mid-range and top-end trims

2. Toyota Fortuner

  • Price Reduction: Up to ₹3.49 lakh
  • New Price Range: ₹33.65 lakh – ₹48.85 lakh
  • Key Features: Rugged design, off-road capability, premium build
  • Impact: More accessible for buyers seeking a luxury SUV experience

3. Tata Safari

  • Price Reduction: Up to ₹1.45 lakh
  • New Price Range: ₹23.33 lakh – ₹34.34 lakh
  • Key Features: Modern SUV styling, spacious interiors, advanced features

4. MG Gloster

  • Price Reduction: Up to ₹3.04 lakh
  • New Price Range: Starting ₹38.36 lakh
  • Key Features: Premium comfort, strong performance, tech features

5. Skoda Kodiaq

  • Price Reduction: Up to ₹3.28 lakh
  • New Price Range: ₹43.76 lakh – ₹45.96 lakh
  • Key Features: European styling, luxury interiors, strong safety

📊 Price Comparison Table After GST Cuts

SUV ModelMax Price ReductionNew Ex-Showroom Price Range (₹)
Mahindra XUV7001.43 lakh13.99 – 24.99 lakh
Toyota Fortuner3.49 lakh33.65 – 48.85 lakh
Tata Safari1.45 lakh23.33 – 34.34 lakh
MG Gloster3.04 lakh38.36 lakh onwards
Skoda Kodiaq3.28 lakh43.76 – 45.96 lakh

💡 Why Buyers Should Take Advantage

  • Significant Savings: Up to ₹3.49 lakh price cut
  • Festive Season Timing: GST cut coincides with Navratri and Diwali, ideal for purchase
  • Increased Affordability: Premium SUVs now within reach of more buyers
  • Enhanced Competition: Price rationalization creates better value for customers

✅ Pros and Cons of Buying Now

Pros:

  • Reduced upfront cost due to GST cuts
  • Opportunity to purchase premium 7-seater SUVs at competitive prices
  • Aligns with festive season buying, potential bonus incentives from dealers

Cons:

  • Limited availability of top trims due to high demand
  • Dealers may have waitlists during festival season
  • Prices could slightly vary based on location and registration

❓ FAQs

Q1: When will the new GST rates come into effect?

  • A: September 22, 2025

Q2: Which SUV sees the highest price reduction?

  • A: Toyota Fortuner, up to ₹3.49 lakh

Q3: Are these reductions applicable on all variants?

  • A: Yes, but the exact amount varies by trim level

Q4: Can I expect additional dealer discounts?

  • A: Many dealers offer festive season bonuses alongside GST cuts

Q5: How does this impact resale value?

  • A: Lower purchase prices may slightly influence resale value but demand remains strong for premium SUVs

🔚 Conclusion & Call-to-Action

The GST price cuts on mass-market 7-seater SUVs have made models like the Mahindra XUV700 and Toyota Fortuner more accessible to Indian buyers. Whether you’re looking for a family SUV, an off-road capable vehicle, or a premium luxury SUV, this is the perfect time to invest.

📢 Action: Visit your nearest dealership, check availability, and take advantage of the GST cut to save lakhs on your new SUV purchase.

⚠️ Disclaimer

This article is for informational purposes only. Prices and offers may vary by city, dealership, and model variant. Always verify details with official dealers before purchase. The author and publisher are not responsible for any discrepancies or decisions made based on this content.