Luxury carmaker announces price revisions following government changes to GST rates on passenger vehicles effective September 2025.
07 Sep 2025 | 3480 Views | By Angitha Suresh
Mercedes-Benz India announced it will transfer the complete benefit of reduced Goods and Services Tax (GST) rates directly to customers, following the government's revision of tax slabs on passenger vehicles. The new GST structure will take effect from September 22, 2025, subject to the issuance of necessary government notifications.
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Mercedes-Benz India announced it will transfer the complete benefit of reduced Goods and Services Tax (GST) rates directly to customers, following the government's revision of tax slabs on passenger vehicles. The new GST structure will take effect from September 22, 2025, subject to the issuance of necessary government notifications.
Under the revised tax structure, all Mercedes-Benz passenger cars except electric vehicles will attract a GST rate of 40 percent. Electric vehicles will continue to be taxed at the existing rate of 5 percent GST.
"In line with our commitment to our customers, we are pleased to share that Mercedes-Benz India will be passing on the entire benefit of the GST reduction directly to the end customers," the company stated.
The announcement follows the government's decision to restructure GST rates on automobiles, which has prompted several luxury car manufacturers to revise their pricing strategies. The move is expected to make Mercedes-Benz vehicles more accessible to consumers in the premium automotive segment.
Mercedes-Benz India operates in the luxury car market with its range of sedans, SUVs, and electric vehicles. The company has been expanding its presence in the Indian market through its network of dealerships across major cities.
The GST revision on automobiles is part of the government's broader tax reform initiatives aimed at streamlining the indirect tax structure. The differential tax treatment for electric vehicles aligns with the government's push toward sustainable mobility and reducing carbon emissions in the transportation sector.
The implementation of the new GST rates is contingent upon the government issuing the required official notifications. Customers and dealers will need to await these formal announcements before the revised pricing becomes effective.