Mercedes-Benz cars get more accessible by up to 11 lakh after GST reduction

Under the new GST rates, luxury cars are now taxed at a flat 40 per cent, removing the compensation cess on vehicles, making the Mercedes-Benz range more accessible. 

Mercedes-Benz GLA
The Mercedes-Benz GLA gets a price reduction of ₹3.8 lakh, while the A-Class is now more affordable by ₹2,6 lakh
Mercedes-Benz GLA
The Mercedes-Benz GLA gets a price reduction of ₹3.8 lakh, while the A-Class is now more affordable by ₹2,6 lakh
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Mercedes-Benz cars are now more accessible under the recently revised GST slab. The automaker has announced a price cut across its model range by up to 10 lakh, depending on the model. Under the new GST rates, luxury cars are now taxed at a flat 40 per cent, removing the compensation cess on vehicles. Previously, luxury cars were taxed at 50 per cent (28 per cent GST + 22 per cent compensation cess).

GST 2.0: Mercedes-Benz Cars Price Reduction

The Mercedes-Benz S-Class 450 4MATIC is now priced at 1.88 crore, a reduction of 11 lakh over the older price of 1.99 crore. The GLS 450d AMG Line is 10 lakh cheaper, retailing at 1.34 crore, as opposed to the older 1.44 crore. The GLE 450 4MATIC now retails at 1.07 crore, down from the previous price of 1.15 crore. The new-generation E-Class LWB recently celebrated its first anniversary in India, and received a price cut of 6 lakh, retailing at 91 lakh for the E 450 trim.

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Also Read : Toyota cars prices slashed under new GST rates, Fortuner cheaper by 3.49 lakh

Mercedes-Benz Cars Old Price New PriceDifference
Mercedes-Benz A 200d 48.55 lakh 45.95 lakh 2.6 lakh
Mercedes-Benz GLA 220d 4MATIC AMG Line 56.50 lakh 52.70 lakh 3.8 lakh
Mercedes-Benz C 300 AMG Line 68 lakh 64.30 lakh 3.7 lakh
Mercedes-Benz GLC 300 4MATIC 79.25 lakh 73.95 lakh 5.3 lakh
Mercedes-Benz E-Class LWB 450 4MATIC 97 lakh 91 lakh 6 lakh
Mercedes-Benz S-Class 450 4MATIC 1.99 crore 1.88 crore 11 lakh
Mercedes-Benz GLS 450d AMG Line 1.44 crore 1.34 crore 10 lakh

Other models like the Mercedes-Benz C 300 AMG Line is now priced at 64.30 lakh, making it cheaper by 3.7 lakh. Entry models like the A 200d now retails at 45.95, more affordable by 2.6 lakh; whereas the GLA 220d 4MATIC AMG Line is priced at 52.70 lakh, a price cut of 3.8 lakh. Lastly, the GLC 300 4MATIC is 5.3 lakh cheaper, retailing at 73.95 lakh. All prices are ex-showroom, India.

Prices for the luxury electric cars remain unchanged as the new GST regime still lists the same at five per cent. The GST reduction makes luxury cars more accessible.

Check out Upcoming Cars in India 2026, Best SUVs in India.

First Published Date: 06 Sept 2025, 19:09 pm IST
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