On a note of the latest GST 2.0 reforms, Kia India announced drastic price cuts across its internal combustion engine (ICE) variants. The Kia price cut will be applicable on several editions, including Kia Seltos, Kia Carens, Kia Carens Clavis, etc. It is expected that each Kia car variant will provide a benefit of up to Rs. 2.00* Lakhs. However, the new GST changes will be effective from September 22, 2025, onwards, but the price cut announcement filled customers with joy.
Let’s dive deep to know the GST 2.0 price reduction impact on various passenger cars.
Which cars have 40% GST ?
The GST 2.0 price reduction suggests that a 40% slab rate will apply to the luxury goods. These luxury goods include high-end cars from different brands. Further, the GST rate will be applicable based on the vehicle’s engine capacity and the dimensions provided. However, Kia India doesn’t sell a true luxury car but includes some luxurious and premium features in them. Here, we have only disclosed the select categories of Kia cars, like the Kia Seltos (SUV), Kia Carens (MPV), and Kia Carens Clavis (MPV). Apart from these, Kia offers many other vehicles under the luxurious category.
What percentage of GST is applicable on a car purchase ?
The new percentage of GST rates 18% and 40% will be levied on car purchases. The new GST rate of 18% will apply to the small petrol/CNG/LPG cars. The benefit applies to cars with up to 1200 cc engines and 4000 mm in length. Also, it is applicable for the diesel engine cars up to 1500 cc with a length of 4000 mm. Moreover, the luxury and SUV cars will attract a 40% GST rate for engines above 1500 cc or a length of over 4000 mm for petrol and diesel variants, respectively. There is no additional cess on these vehicles. Further, the cars that fall under the EV category will attract a 5% GST rate.
Want to know about the Kia Seltos price after GST? Rush to your nearest Automotive Kia Hyderabad showroom today and book a test drive to explore.
How much GST on Kia Seltos ?
Earlier, the GST rate included an additional cess between 1-22%. It was levied on select category cars. Due to the additional cess, the effective tax range increased up to 50%. But the latest GST 2.0 reforms slashed the higher rates to 40% and discontinued the cess. The categories like “luxury goods” and “sin goods” attract 40% GST, which includes high-end cars.
Let us look at the Kia Seltos GST rate. The new rate of GST on Kia Seltos will be between 18% and 40% based on the dimensions and engine capacity.
The Kia Seltos is categorized as a compact SUV with two engine variants: the 1493 cc diesel and the GDi petrol versions with 1482 and 1497 cc. Based on these engine variants, the latest GST rate will apply. The expected Kia Seltos price after GST will be reduced up to Rs. 200,000*, which includes additional festive benefits. Further, to get actual price updates, you can explore our Kia showrooms.
Kia Carens Price After GST
The GST on Kia Carens, an MPV category car, will also be reduced to some extent. After the Kia Carens GST rate reduction, the total benefit will be up to Rs. 1.20* Lakhs, including the festive season offers. The ex-showroom price of the Kia Carens starts from Rs. 11.40* Lakhs, which may vary based on the variant you buy.
Kia Carens Clavis Price
We can also see the GST 2.0 reforms’ impact on the Kia Carens Clavis price reduction. The GST rate cut benefits, along with the festive offers on the Kia Carens Clavis, will be up to Rs. 133,500*. Moreover, Kia Carens Clavis is an MPV vehicle where the GST rates will apply as per category.
Kia Carnival Price
Some other Kia cars also get this price reduction benefit, like the Kia Carnival. The expected Kia Carnival GST price cut will be up to Rs. 4.00* Lakhs approximately. The final price of the car after the new GST rate may differ based on the variant and location.
KIA Sonet GST Rate
The GST on Kia Sonet will also be slashed, as it is categorized under the subcompact SUV rather than a traditional small car. Based on the technical features of the Smartstream G1.2 1197 cc and G1.0T-GDi 998 cc engines, the Kia Sonet qualifies for the lower tax bracket. The applicable GST rate on the Kia Sonet will be 18%.
Want more updates on the Kia price cut? Visit your nearest Automotive Kia Delhi dealership and book a test drive or book your dream car.
How to get GST benefits on a car purchase ?
Businesses that use cars for the transportation of goods or for any other commercial purposes can claim ITC (Input Tax Credit) on the used cars. Moreover, the business entities using vehicles for driving training can also claim ITC. But there will be a significant price reduction across the variants of Kia cars. It will help you buy your dream car at a reduced price.
However, no ITC claim will be available on the vehicles used for personal or non-commercial activities.
Final Thoughts
Many individuals and business entities can benefit from the Kia price cut after the GST 2.0 reforms. The festive offers from Kia India will grow further after the implementation of the GST rate cut. Kia offers a range of variants in SUVs, EVs, and MPVs through its wide range of showrooms and sales network. The aim is to deliver better service and a comfortable driving experience through Kia cars. People who like to go for long drives with better comfort and advanced safety prefer Kia vehicles. Let’s experience the benefit of the GST 2.0 rate cut and bring happiness to your home today in this festive season.
