GST 2.0: Car Prices Now as Low as Four Years Ago

The Modi government has provided a major festive relief by implementing new GST rates starting September 22, coinciding with the beginning of Navratri. With this, several essential and lifestyle products have become cheaper—including food items, cars, TVs, and bikes. These products see a huge surge in demand during the festive season.

However, not everything has become cheaper. For instance, clothes priced above ₹2,500 will now attract 18% GST instead of the previous 12%. This GST rate revision has also caused a strange practical issue. Several FMCG companies have adjusted their prices to odd values. For example, the price of the smallest pack of Parle-G biscuits has dropped from ₹5 to ₹4.45. The problem? Coins below ₹1 are no longer in circulation—so how do customers pay ₹0.45?

Despite a general market slowdown, India's largest car manufacturer Maruti Suzuki saw a 3.2% surge in stock price today, reaching ₹16,321 on the BSE. On the first day of the GST festival, Maruti sold around 30,000 cars—setting a new record for Navratri sales in the past 35 years.

Since the GST reforms were announced, Maruti’s shares have surged by 26%, and its market capitalization has increased by ₹1 lakh crore.