The Government of India recently announced the new Goods and Services Tax (GST) rates and the abolition of compensation cess. This resulted in price reduction for most vehicle segments. Almost every passenger vehicle (PV) OEM by now has passed on the benefits of the reduced tax rates to the buyers.
While new cars have gotten more affordable, there has been no change in prices for used or pre-owned cars. However, Spinny, one of the most popular used car platforms, has announced that it will reduce prices across its inventory ahead of GST 2.0 rates for new cars.
Spinny used-car prices reduced
Even though GST on used cars remains unchanged, Spinny is passing on benefits to maintain fairness and transparency. Any buyer looking to purchase a used car from Spinny can avail reduced prices before the new GST rates kick in from 22 September. The pre-owned car retail platform will offer vehicles at reduced prices with discounts of up to 2 lakh on the listed price, effective immediately.
On the other hand, sellers will continue to benefit from sustained buyer demand and better resale value with potential benefits of up to Rs 20,000 per car. Instead of waiting for the downstream effects to materialize, Spinny has taken a proactive approach by aligning its pricing with the evolving market context to deliver immediate value.
Speaking on this development, Hanish Yadav, Senior Vice President & Business Head at Spinny, said, “At Spinny, the customer comes first, always. Whether it’s pricing, quality, or the buying or selling experience, transparency and trust are non-negotiable. We’ve taken a proactive stance, adjusting prices before the GST reforms take effect. This ensures our customers can make confident decisions today, without waiting or second-guessing market movements.”
New GST rates: Car prices reduced
The revised GST structure has made cars across segments more affordable. Small cars under 4 metres with petrol engines up to 1,200cc or diesel up to 1,500cc will now attract only 18% GST, down from 28%, making them 5–13% cheaper. Larger cars over 4 metres with bigger engines will face 40% GST instead of 28%, but since the cess has been removed, their overall tax burden is lower, reducing prices by 3–10%.
On the other hand, luxury brands like Mercedes-Benz, Audi, BMW, and Jaguar Land Rover, earlier taxed at 50% (28% GST plus 22% cess), will now face a flat 40% tax, significantly lowering costs. This update benefits buyers across small, mid-size, and luxury car categories.