New Delhi, Sep 8 Kia India on Monday said that it would pass on the complete benefit of the recent Goods and Services Tax (GST) reduction to customers across its entire internal combustion engine (ICE) portfolio, reducing rates up to Rs 4.48 lakh effective from September 22.
The development came after the Centre decided to lower GST on cars to 18 per cent from 28 per cent, making mobility more accessible ahead of the festive season.
Kia Carnival will see the highest price cut at Rs 4,48,542, followed by Syros (Rs 1,86,003), Sonet (Rs 1,64,471), Carens Clavis (Rs 78,674), Seltos (Rs 75,372), and Carnes (Rs 48,513).
The Goods and Services Tax Council (GST Council) approved a three-tier structure- 5 and 18 per cent as primary slab and an additional 40 per cent slab for sin goods and ultra luxury products.
The new indirect tax came into effect from the first day of Navratri, i.e. September 22, replacing the current four-tier -- 5,12,18, and 28 per cent GST structure.
"We welcome the Government of India’s visionary citizen-centric reforms to reduce the GST on passenger vehicles. This transformative measure represents a progressive and timely decision towards making vehicle purchase more affordable for consumers and bringing a boost to the automotive sector's growth," Kia India Managing Director and CEO Gwanggu Lee said.
"In line with this vision, we are proud to pass on the full benefit of the GST rate reductions to our customers, ensuring more affordability and greater accessibility," he added.
"This significant reform simplifies the taxation framework and reinforces the government’s commitment to sustainable economic growth and innovative mobility solutions."
Earlier, Tata Motors, Mahindra and Mahindra, Renault India and Hyundai India have announced passing on GST rate cut benefits to end customers.
Prime Minister Narendra Modi announced next-generation GST reforms as a "Diwali gift" in his Independence Day speech.
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