GST Rates on Mahindra XUV 3XO and XUV300
The major GST changes for the Mahindra XUV 3XO and XUV300 in 2025 have significantly reduced the prices of these cars. Previously, the XUV 3XO and XUV300 were subject to a 28% GST rate, but after GST 2.0, the overall rate has been reduced to 18%, with the cess being removed from the new GST structure.
New Prices and Savings
After the new GST slab, the base petrol variant of the Mahindra XUV 3XO now starts at ₹7.28 lakh (ex-showroom). The biggest price cut is seen in the diesel variant, the AX7 L 1.5L. This variant has a total savings of ₹1.56 lakh, representing a total price reduction of 10.42%.
| Variant | Old GST + Cess | New GST | Price Change |
| ---------------------- | -------------- | ------- | --------------- |
| XUV 3XO (Petrol) | 29% | 18% | ₹1.40 lakh less |
| XUV 3XO (Diesel) | 31% | 18% | ₹1.56 lakh less |
| XUV300 (Petrol/Diesel) | 29–31% | 18% | ₹1.15 lakh less |
GST Changes: A New Beginning
GST 2.0 has significantly reduced the prices of SUVs. Previously, there was a tax of up to 50% and cess, but now, after GST 2.0, SUVs have become cheaper and more affordable in the car market.
Mahindra XUV 3XO and XUV300 Price Changes
Both the Mahindra XUV 3XO and XUV300 fall under the GST category, where GST is 18% and cess is not applicable. This is because:
Ex-showroom prices start at ₹7.28 lakh
Substantial diesel prices vary depending on the engine
Up to ₹1.56 lakh savings on higher variants
Advice for serious buyers
Both vehicles, especially the XUV 3XO, now offer a better opportunity for middle-class families, newlyweds, and first-time SUV buyers. Lower taxes will also reduce insurance, road tax, registration, and loan EMIs.
The new GST 2.0 brings the biggest change to the XUV 3XO—the SUV now attracts only 18% GST, with cess completely removed, resulting in a direct price reduction of ₹1.40 lakh (petrol) to ₹1.56 lakh (diesel).
Key Changes
- Previously, sub-4-meter SUVs like the XUV 3XO were subject to 28% GST + 1%-3% cess, resulting in a total tax of around 30%.[5]
- Under GST 2.0, only 18% GST will be applicable; Cess burden completely eliminated.[6][5]
- The AX7 L 1.5L diesel variant has the biggest reduction, with savings of up to ₹1.56 lakh—a price drop of up to 10.42% across all variants.
- Insurance, road tax, registration, and EMI have also been reduced, making SUV ownership more affordable for the average consumer.
Simplified Tax Structure
After GST 2.0, there are only two tax slabs:
- Small SUV (≤4000mm, engine ≤1200cc petrol or ≤1500cc diesel): 18% GST
- Large/Full-size SUV: 40% GST
- Electric SUV: 5% GST
Conclusion
With the new GST 2.0, the Mahindra XUV 3XO is now significantly cheaper than before, and the tax structure is also straightforward and easy to understand. Customers will now enjoy significant benefits when purchasing an SUV. Due to GST 2.0, the Mahindra XUV 3XO and XUV300 have seen prices drop by over 10% and will now be taxed at just 18%. This change is highly beneficial for SUV buyers and has created a stir in the entire market. For those planning a purchase, this is a golden opportunity.
