New GST council norms remove Mahindra Thar from SUV category; Price-cuts expected

With New Year 2023 hurling towards us in quick steps, Mahindra Thar lovers are getting an early surprise from the GST council. The GST council has incorporated some significant changes in the definition of SUVs in India. Per the altered criteria, Mahindra Thar has been removed from the SUV category, resulting in less tax.

When it comes to popularity, Mahindra Thar is a market-leader. It is one of the most top-rated 4X4 SUVs currently available in the market. In 2020, Mahindra Thar received a facelift that helped the brand widen its presence in the SUV sector. The present ex-showroom price of Mahindra Thar in India is INR 13.58 lakh.

GST council has laid down certain criteria for a vehicle to qualify as an SUV in India. Under this, a car is tagged as an SUV if its length is more than 4,000mm, engine capacity is over 1,500cc, and ground clearance is over 170mm. A car failing to meet any of these set parameters will not qualify for the SUV category. Mahindra Thar satisfies two of these criteria. It has 226mm of ground clearance and engines with over 1,500cc capacity. However, its length is only 3,985mm long and so it fails to qualify GST council’s SUV eligibility.


Regarding the tax implications, the council has revealed that SUVs in India will carry 28% GST obligation and 22% cess or 50% total tax. Cess depends on the car length, its type (petrol/diesel), and displacement of engine. The non-SUV category will bear lower cess. As Mahindra Thar has been removed from the SUV cluster, individuals can expect to enjoy a significant drop in its on-road prices. So, those planning to buy a car this New year can book their Mahindra Thar at lower costs from their nearest dealer shop.

FAQ

Q1. Does Mahindra Thar come in diesel variant?
Ans. Yes, Mahindra Thar is available in petrol and diesel variants both. Customers can buy either of the two based on their budget and preference.

Q2. When was Mahindra Thar launched?
Ans. Mahindra Launched Mahindra Thar in India on October 4, 2010. The car is very popular in the SUV category.