Mahindra XUV700 GST Rate – Price Cut and Savings Explained
Introduction
The Mahindra XUV700 has been one of the most popular SUVs in India since its launch, offering premium features, powerful performance, and advanced safety. Recently, with the introduction of the revised Goods & Services Tax (GST) structure, buyers of the XUV700 are in for some good news. The government has reduced the effective tax rate on large SUVs, leading to a significant price drop for this flagship Mahindra model.
Previous GST Rate on SUVs
Earlier, large SUVs like the Mahindra XUV700 were taxed at a combined rate of around 48%. This included 28% GST plus an additional compensation cess of up to 20%. Vehicles with a length of more than 4 metres and engine capacity above 1,500 cc were part of this bracket. Because of this high taxation, SUVs carried a heavier price tag compared to smaller cars.
New GST Rate for Mahindra XUV700
With the new GST reforms, the government has streamlined the tax slabs for vehicles. For SUVs that are longer than 4 metres and equipped with engines above 1,500 cc, the new tax rate is 40% flat. This is a clear reduction from the earlier effective rate of 48%.
For Mahindra XUV700 buyers, this means lower ex-showroom prices and better affordability across all variants.
How Much Can You Save?
The price cut due to the GST rate revision varies across different trims of the XUV700. On average, buyers can save between ₹90,000 to ₹1.43 lakh depending on the chosen model.
- Base Variants (MX Trim): Around ₹88,000 savings
- Mid Variants (AX3, AX5): Around ₹1.05 lakh to ₹1.18 lakh savings
- Top Variants (AX7, AX7 Luxury Pack): Around ₹1.31 lakh to ₹1.43 lakh savings
This translates to a reduction of about 5–6% in ex-showroom prices, making the XUV700 more attractive in its segment.
Benefits for Buyers
- Lower On-Road Cost: Since registration, insurance, and other charges are based on ex-showroom price, the overall cost of ownership reduces.
- Better Value for Premium Variants: Higher trims with luxury features now deliver more value due to bigger price cuts.
- Immediate Effect: Mahindra has already started passing on the benefits of the reduced GST rate to customers.
- Enhanced Market Competitiveness: With lower prices, the XUV700 becomes an even stronger rival to other premium SUVs.
Conclusion
The Mahindra XUV700 is now more affordable than ever, thanks to the revised GST rate. With tax reduced from nearly 48% to 40%, buyers can enjoy savings of up to ₹1.43 lakh depending on the variant. If you have been planning to bring home this powerful SUV, this is the perfect time to make the move.
Leave a Reply