Goods and Services Tax Decrease The Cars Price Is the GST will decrease the price of cars (Automobile Industry). Yes this is true, that GST will decrease the price of cars but only for Luxury Cars only. This Goods & Services Tax step taken by Modi Government will effect on the pocket of middle class family there is no benefits by this taxation system imposed by Government. Because before this GST, total tax imposed on small cars is around (25 % to 27.5 %) , after GST it will be around (29%) increase by (+1.5 to 2 % ). This small car category includes (Alto, Kwid, Celerio, Baleno, Polo, i2o, etc). There is still no "Aache Din for Aam Aadmi". Now, We talk about Sedan, Compact SUV, having heaver engine than 1500 cc above 4 meter in length ( such as Ciaz, Verna, Creta, Duster etc). There is no effect of GST on this category cars. Main effect of GST only for Luxury cars, the price of this category cars will be decreased by (12 %