Govt to Car And Bike Dealers: Display GST 2.0 Price Cut Picture With PM Modi In It

Posters to Show Pre- and Post-GST Prices

The Ministry of Heavy Industries has directed car and two-wheeler makers to ensure that every dealership across India displays posters highlighting the GST 2.0 price cuts, reports Business Standard. The instruction, routed through the Society of Indian Automobile Manufacturers (SIAM), is clear: each poster must carry a comparison of old and new vehicle prices, along with a photograph of Prime Minister Narendra Modi.

The move comes less than a month after GST 2.0 was rolled out, which slashed the tax burden on most cars and bikes. Small cars now attract an 18% GST rate, down from 29-31%, while larger vehicles are taxed at 40% instead of 50% with cess. Automakers ranging from Maruti Suzuki and Hyundai to Mahindra, Tata, Toyota and Skoda have already revised ex-showroom prices to reflect the benefit.

Industry Concerns

While the directive leaves little ambiguity about compliance, it has triggered unease among manufacturers and dealers. Printing costs for the posters could run into several crores of rupees, though it remains unclear whether companies or dealers will bear the expense. The requirement for state-level language versions adds another layer of logistical complexity, since each design needs prior ministry approval.

Dealers are also worried about timing. Many outlets are still clearing stock purchased before GST 2.0 came into effect, leaving them with limited flexibility on discounts. The issue of compensation cess credits, estimated at ₹2,500 crore, remains unresolved. These credits cannot be utilised under the new tax structure, and dealer associations have already petitioned the Prime Minister for relief.

Consumer Transparency

From the government’s standpoint, the campaign is meant to underline transparency. By displaying posters that spell out pre- and post-GST prices, dealerships are expected to demonstrate that the full benefit is being passed on to customers. Officials see it as a way of reinforcing confidence in the reform and making the tax cut more visible to the public during the festive buying season.

For buyers, the posters will act as a quick reference to the scale of price reductions. In popular mass-market segments, savings range from ₹50,000 to over ₹1 lakh, while high-end SUVs such as the Jeep Wrangler and Toyota Fortuner have seen cuts of several lakh rupees. Two-wheeler prices have also eased, making commuter motorcycles and scooters more affordable.

Politics Around the Message

The decision to include the Prime Minister’s image on every dealership poster has added a political dimension to what might otherwise have been a routine information campaign. For some, it reflects an effort to directly link the reform with government leadership. For others, it risks shifting focus away from the industry and onto the political narrative.

Regardless, dealerships will have little choice but to comply. With approvals and distribution expected in the coming weeks, customers walking into showrooms this festive season are likely to find a new fixture alongside the cars and bikes on display: brightly coloured posters showing lower prices, a comparison of before and after GST 2.0, and the Prime Minister’s face above it all.