The Mahindra XUV700 GST rate was slashed to 40% from 48% — variant-wise price drop of up to ₹1.43 lakh! All about new GST 2.0 reforms, savings, and how it impacts your XUV700 cost. Read now!”
Mahindra XUV700 GST Rate—What’s New, What It Means & How Much You Save
Introduction
The GST (Goods & Services Tax) reforms announced in September 2025 have altered tax slabs on large SUVs in India. One of the biggest beneficiaries is the Mahindra XUV700, which now comes with a significantly lower GST + cess rate. This change brings large savings for buyers. Here’s a breakdown of what’s changed, how much you can save, and what buyers should know.
What Changed: Old vs New GST + Cess
| Parameter | Old Rate (GST + Cess) | New Rate | Category |
|---|---|---|---|
| Large SUVs (above 4 metres length & engine >1,500 cc) | ~48% (28% GST + ~20% cess) | 40% flat | Includes XUV700 variants (CarDekho) |
- The old structure charged 28% GST plus up to ~20-22% cess, so effective tax was ~48%. (CarDekho)
- Under the new “GST 2.0” reforms (effective September 22, 2025, though some benefits are being passed ahead of the date), that tax rate for large SUVs has been reduced to 40% flat. (The Economic Times)
How Much You Save on XUV700 (Variant-Wise)
The savings vary by variant. Here are sample figures:
| Variant | What’s Saved (≈) |
|---|---|
| MX | ~ ₹ 88,900 (CarDekho) |
| AX3 | ~ ₹ 1,06,500 (CarDekho) |
| AX5 S | ~ ₹ 1,10,200 (CarDekho) |
| AX5 | ~ ₹ 1,18,300 (CarDekho) |
| AX7 | ~ ₹ 1,31,900 (CarDekho) |
| AX7 L (top trims) | ~ ₹ 1,43,000 (CarDekho) |
So for most variants, the buyer is saving over ₹1 lakh, except for base trims which see smaller benefit. (CarDekho)
Implications for Buyers
- Lower Ex-showroom Price
The ex-showroom price for XUV700 variants will be lower due to reduced tax burden. (V3Cars) - Downstream Costs Also Drop
Since RTO, registration, and even insurance are often calculated on the basis of ex-showroom value, the total on-road cost will be reduced. (CarDekho) - Festive Season Demand
The tax cut is effective just before the festive season. Buyers looking for XUV700s may see better deals and quicker booking incentives. (Moneycontrol) - Variant-specific differences matter
If you opt for higher trims (AX7 / AX7 L etc.), savings are maximum. Base trims see less, but still noticeable. Also, fuel type (petrol vs diesel) may affect final savings after factoring in engine capacity / emissions. (V3Cars)
When Does It Apply
- Officially, the new GST reform (GST 2.0) rate comes into effect 22 September 2025. (V3Cars)
- But Mahindra is already passing on the benefits earlier for many XUV700 variants. (CarDekho)
Why This Matters
- Huge cost benefit: Saving up to ₹1.43 lakh reduces ownership cost and may make the XUV700 more competitive versus rivals.
- Improved affordability for buyers considering top trims.
- Boosts demand in SUV segment — price reduction may sway buyers to upgrade rather than settle for lower models.
Things to Check Before Buying
- Confirm variant-wise new price at your local dealer (Vadodara / Gujarat) because ex-showroom pricing can vary with state/local taxes.
- Check if the variant you’re interested in meets the “large SUV” criteria (length > 4m, engine > 1,500 cc) so that the new 40% rate applies.
- Check actual on-road cost including registration, insurance, etc., since those portions also might be impacted.
- Be aware of any waiting time or dealership stock issues, since many buyers will act quickly during the reform rollout.
If you were eyeing a Mahindra XUV700, there’s never been a better time. The recent GST cut — from ~48% to 40% for large SUVs — translates into savings of ₹88,900 to ₹1,43,000 depending on variant. Whether you’re opting for the base MX or the top-end AX7 L, the benefits are significant. Just make sure you check the actual price in your city and variant.
If you like, I can give you a localized version of this article for Gujarat / Vadodara, with RTO-GST-on-road cost estimates. Would you prefer that?
FAQs (SEO-Friendly Q&A for Featured Snippets)
Q1. What is the new GST rate on Mahindra XUV700 in 2025?
The new GST rate on large SUVs like the Mahindra XUV700 is 40% flat (28% GST + 12% cess), reduced from the earlier ~48%.
Q2. How much cheaper is the Mahindra XUV700 after the GST cut?
Depending on the variant, the XUV700 is now ₹88,900 to ₹1.43 lakh cheaper compared to earlier prices.
Q3. From when will the new Mahindra XUV700 GST rates apply?
The GST 2.0 reforms take effect from 22 September 2025, but Mahindra has already started passing benefits to customers.
Q4. Does the GST cut apply to all XUV700 variants?
Yes, all variants qualify since the XUV700 is above 4m in length and offers engines above 1,500 cc. However, the savings are higher on AX5, AX7, and AX7 L trims.
Q5. Will the on-road price of Mahindra XUV700 also reduce?
Yes, because ex-showroom prices are lower, the RTO tax and insurance costs will also reduce, making the overall on-road price cheaper.
Q6. Is Mahindra XUV700 now the best SUV to buy in 2025?
With a price cut of over ₹1 lakh and premium features, the XUV700 has become one of the most value-for-money SUVs in India right now
Resources
- Mahindra XUV700 official site
- CarDekho Mahindra XUV700 GST update
- Economic Times on SUV GST cut
- V3Cars price breakdown