Mahindra Thar Not An SUV: GST Council, Price Cut Likely

• As per the latest GST Council norms, the Mahindra Thar fails to qualify as an SUV.
• A lower tax slab for the 4X4 SUV could likely result in a price reduction.
• Everything about the revised GST guidelines and their implications on Mahindra Thar is covered in this article.

Mahindra Thar is one of the most popular SUVs in the Indian market. All thanks to its butch stance, high ground clearance and 4WD capabilities, it has become synonymous with an SUV. In fact, it is one of the few vehicles in the country, which qualifies as a real purpose-driven SUV, of course in the vast ocean of pseudo-monocoque front-wheel drive SUVs with high ground clearance. Contrary to this, Thar fails to qualify for the latest SUV criteria set by the GST council. What's this confusion all about? Let's find out.

Also Read: Upcoming 2023 Mahindra Thar 4X2 1.5 Diesel Walkaround: What's New?

Mahindra Thar Not An SUV: GST Council

In order to bring some standardisation to the tax imposed on vehicles, the GST council has designated new criteria, specifically for the SUV vehicle category. As per the latest guidelines, if a vehicle is more than 4,000 mm in length, has engine displacement higher than 1500cc with over 170mm ground clearance, can only be labelled as an SUV. If the four-wheeler fails to meet any of the aforementioned conditions, then it will be struck off from the SUV category.

Talking about the Mahindra Thar, the SUV sports a ground clearance of 226 mm and comes equipped with a 2.2 litre (2184cc) diesel and 2.0 litre (1997cc) petrol engine, both of which are well over the 1500cc mark. The one condition where the vehicle falls short is its length, which stands at 3985 mm, a notch below the 4,000 mm mark. So based on this, Thar no longer qualifies as an SUV, only in the GST council tax slab criterion.

Mahindra Thar Not An SUV: Price Reduction?

The Mahindra Thar is currently priced in the range of Rs. 13.59 to Rs. 16.29 lakh (ex-showroom). These prices are based on the ongoing higher tax slab, which stands at a total of 50% accounting for 28% GST and 22% cess. The cess is further variable based on the fuel type (petrol/diesel), engine displacement as well as the length of the vehicle. So after the new norms come into play, the Thar will attract lower tax imposition, thus resulting in a price reduction.

Also Read: Compact SUVs May Get More Affordable With Changes To GST Rules - Details

Verdict: For the people considering the Mahindra Thar as their next vehicle, this seems to be great news. Lower tax rates will directly translate into a lower ex-showroom price, thus making the 4X4 SUV more affordable. However, this price reduction could be bad news for the existing buyers who bought the SUV at the current market price as the resale value of the four-wheeler is bound to dip. That being said, the new GST council guidelines will also bring some good news for prospective buyers of other sub-4 meter SUVs in the market.

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