The country's largest carmaker, Maruti Suzuki India, has passed on the benefits of the Goods and Services Tax (GST) rate rationalisation to the prospective buyers, slashing the prices of models like the Swift, Dzire, Baleno, Fronx and Brezza, by up to Rs 1.10 lakh.

The new prices will become effective on September 22, the date the revised GST rates come into effect.

Maruti sells its cars via the Arena dealerships and the Nexa dealerships.

Among the Arena cars are the Alto K10, S-Presso, WagonR, Celerio, Eeco, Swift, Dzire, Brezza and Ertiga. The Nexa models include the Ignis, Baleno, Fronx, Jimny, Grand Vitara, XL6 and Invicto. Maruti has more than 4,000 Arena showrooms and over 700 Nexa showrooms across the country.

In the GST 2.0 regime, the price cut will be up to Rs 52,910 on the Alto K10, Rs 52,143 on the S-Presso, Rs 63,911 on the WagonR, Rs 62,845 on the Celerio, Rs 67,929 on the Eeco, Rs 80,966 on the Swift, Rs 86,892 on the Dzire, Rs 48,207 on the Brezza, and Rs 46,224 on the Ertiga.

On the Nexa cars, the price drop will be up to Rs 69,240 on the Ignis, Rs 80,667 on the Baleno, Rs 1,10,384 on the Fronx, Rs 51,052 on the Jimny, Rs 67,724 on the Grand Vitara, Rs 51,155 on the XL6 and Rs 61,301 on the Invicto.

The recently-launched Victoris, to be sold from the Arena showrooms, has been priced as per the new GST rates.

With GST rate rationalisation, all internal combustion engine (ICE) and hybrid cars will be in the 18% and 40% slabs. While smaller cars, such as hatchbacks, compact sedans, and compact SUVs, will attract a GST of 18%, relatively larger models and luxury vehicles will be taxed at 40%. There will be no compensation cess.

In the GST 1.0 regime, ICE and hybrid cars were subject to a 28% GST, along with a compensation cess ranging from 1% to 22%, depending on the vehicle's length, engine capacity, and body style. Smaller models faced a lower cess, but the larger cars paid the highest. This resulted in the total tax of 29% to 50% (28% GST + 1% to 22% compensation cess).

Rival carmakers like Mahindra & Mahindra, Hyundai Motor India, Tata Motors, Toyota Kirloskar Motor, Kia India, JSW MG Motor India, Honda Cars India, Renault India, Skoda Auto India and Volkswagen India have also passed on the GST benefits in the form of price reduction. Among the luxury carmakers, Mercedes-Benz India, BMW Group India, Jaguar Land Rover (JLR) India, Audi India and Volvo Car India have also followed suit.