The Indian automobile industry has entered a new phase with the government’s decision to simplify and restructure the Goods and Services Tax (GST). One of the biggest beneficiaries of this reform is the SUV segment, particularly the “Mahindra Scorpio Classic S11″, which has seen a price reduction of up to ₹1.01 lakh across India, including states like Maharashtra, Punjab, Kerala, Jharkhand, Jammu & Kashmir, Bihar, Uttar Pradesh, Chhattisgarh, Andhra Pradesh, and Gujarat. This change became effective on September 6, 2025, following the 56th GST Council meeting.

GST on Automobiles in India: A Comprehensive Overview

The government’s updated GST framework, popularly known as GST 2.0, is designed to simplify taxation and make vehicles more affordable for Indian buyers. Previously, the taxation on cars was complicated, with a base GST of 28% and an additional compensation cess that varied depending on vehicle size and engine capacity. This pushed effective taxes anywhere between 29% and 50%.

Under GST 2.0, the system has been streamlined into three main slabs:

• Small Cars (18% GST): Petrol, LPG, and CNG cars up to 1200cc and less than 4 meters in length, as well as diesel cars up to 1500cc and less than 4 meters. Popular models like Maruti Suzuki Swift, Tata Punch, and Hyundai Grand i10 now fall under this slab.

• Large Cars & SUVs (40% GST): Vehicles with petrol engines above 1200cc or diesel engines above 1500cc and length exceeding 4 meters, including luxury cars and SUVs like the Scorpio Classic, Scorpio-N, Thar, and XUV700.

• Electric Vehicles (5% GST): EVs remain the most tax-friendly option, encouraging buyers to shift towards sustainable mobility.

This shift is expected to simplify car pricing and make larger cars and SUVs more affordable by removing the previous cess structure.

Why the Price Cut Happened

The Scorpio Classic S11’s price reduction is directly linked to the GST Council’s decision to reduce the tax on SUVs from 48% to 40%. By eliminating the compensation cess, taxation is not only simplified but also more predictable, offering long-term relief to both buyers and manufacturers.

Benefits of the GST Cut

1. Increased Affordability: c

2. Simplified Taxation: No more complicated cess calculations—buyers know exactly how much tax they’re paying.

3. Boost to Sales: Lower prices are expected to drive higher demand, especially during festive seasons.

4. Industry Growth: Higher sales can lead to improved production and job creation across the automobile supply chain.

Disadvantages to Watch Out For

• State Revenue Impact: States may see reduced revenue collections from car sales.

• Possible Price Rise in Some Models: Certain models that had lower cess earlier might now face higher taxes.

• Clarification on Unsold Stock: Dealers are still waiting for clarity on taxation for unsold inventory under the old system.

State-Wise Impact of the Price Drop

• Mumbai (Maharashtra): Up to ₹1.01 lakh reduction effective immediately.

• Punjab & Kerala: Similar reductions seen across dealerships, passing benefits directly to customers.

• Jharkhand & J&K: Customers can expect the same price cut due to uniform GST reduction.

• Bihar & Uttar Pradesh: Prices down by nearly ₹1.01 lakh, making Scorpio Classic S11 a more attractive option.

• Chhattisgarh & Andhra Pradesh: Mahindra has officially confirmed GST benefits are reflected in dealership pricing.

• Gujarat: Buyers can now avail the reduced pricing across the state.

How to Check the New Price

To find the exact updated price of the Scorpio Classic S11 in your city:

1. Contact a Local Mahindra Dealership for the latest on-road prices.

2. Visit the Official Mahindra Website where prices are updated regularly.

3. Check Automotive Portals like CarDekho, ET Auto, and  ZigsWheel for city-wise updated prices.

GST and the Future of the Automobile Industry

The restructured GST slabs are expected to positively influence car buying trends:

• Small Cars: More affordable for first-time buyers.

• SUVs: Reduced tax makes aspirational models like Scorpio Classic more reachable.

• EVs: Continued support at 5% GST strengthens the government’s push toward electric mobility.

The automobile industry predicts a revival in sales thanks to reduced tax burdens. However, industry leaders also stress the importance of continuous government support to balance affordability, innovation, and environmental goals.

Conclusion

The reduction in GST on SUVs from 48% to 40% has emerged as a major win for SUV buyers in India. The Mahindra Scorpio Classic S11 stands out as one of the biggest beneficiaries, with a price drop of up to ₹1.01 lakh across the country. With simplified taxation, more predictable pricing, and the elimination of the cess, car buyers can now plan purchases with greater confidence. For Mahindra, this reform is expected to drive a surge in demand, strengthening its presence in the competitive SUV market.

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