Mahindra has announced price cuts for its XUV700, making it a more appealing option for consumers. This reduction is a direct result of the recent GST rate adjustment, with savings reaching up to Rs 1.43 lakh. These changes are effective before the new GST rates take effect on September 22nd. Mahindra is also offering detailed information on how much each XUV700 variant will cost after the price cut.
The government’s decision to lower the tax rate on large SUVs, from 48% to 40%, has led to these price reductions. This applies to vehicles such as the XUV700, which are over 4 meters long and have engines larger than 1,500 cc. Previously, these vehicles faced a combined tax of 48%, composed of a 28% GST and a 20% cess. Now, the tax structure is a straightforward 40%.