Mahindra passes on full GST benefits, prices slashed by up to ₹1.56 lakh

Mahindra & Mahindra has announced that it will be passing on the full benefits of the revised GST regime to customers, with price reductions across its entire ICE-powered SUV portfolio. The revised prices come into effect starting today, September 6. The company has announced price reductions of up to ₹1.56 lakh across its model range, with price cuts depending on the model and variant. The new prices will come into effect on September 22, 2025, the date when the revised GST slabs will be applied.

Mahindra model-wise benefits:

Mahindra has confirmed that its ICE SUV lineup will see notable price reductions under the revised system. The highest benefit of ₹1.56 lakh is available on the XUV3XO Diesel, while other models such as the Scorpio-N, XUV700, and Thar also see reductions in the range of ₹1–1.45 lakh. If you are interested in purchasing a Mahindra SUV, take a look at the complete list of model-wise price reductions below.

Model	GST Benefit ( ₹ lakh, up to)
Bolero / Neo	1.27
XUV3XO (Petrol)	1.40
XUV3XO (Diesel)	1.56
Thar 2WD (Diesel)	1.35
Thar 4WD (Diesel)	1.01
Scorpio Classic	1.01
Scorpio-N	1.45
Thar Roxx	1.33
XUV700	1.43

GST 2.0: What has changed?

The new Goods and Services Tax (GST) structure, dubbed ‘GST 2.0,’ was announced last month and has now come into effect nationwide. The updated system simplifies automobile taxation by moving to a two-slab structure of 5 per cent and 18 per cent, with a special 40 per cent slab reserved for larger cars, SUVs, and premium motorcycles above 350 cc. Importantly, the additional compensation cess that was previously applied on top of GST has been done away with.

This reform means small cars (petrol up to 1,200 cc and diesel up to 1,500 cc) are taxed at 18 per cent, a significant reduction from the earlier 28 per cent. Larger vehicles, including SUVs above four metres with bigger engines, are slotted into the 40 per cent slab, which, despite the higher rate on paper, comes out to be cheaper than the previous 45–48 per cent effective tax when cess was included.

What it means for buyers

For prospective SUV buyers, Mahindra’s move comes right ahead of the festive season, potentially spurring demand. While small and mid-size SUVs such as the XUV 3XO see the sharpest price cuts, even larger models such as the Scorpio-N and XUV700 are now slightly more affordable under GST 2.0.

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