Skoda Offers Double Benefit with GST Cuts And Festive Discounts

Skoda Auto India has rolled out a pricing strategy that combines the government’s GST 2.0 tax reform with additional festive offers, creating one of the strongest value propositions in the market. Buyers can access GST-equivalent prices ahead of the official September 22 implementation date and enjoy extra discounts until September 21, making this a rare dual-benefit period.

Big Reductions on the Kodiaq

At the top of Skoda’s lineup, the Kodiaq SUV sees the largest price correction. The premium seven-seater now carries GST-related savings of up to ₹3.3 lakh, with an additional ₹2.5 lakh festive discount layered on top. In total, this brings the benefit to ₹5.8 lakh, one of the steepest cuts in the premium SUV segment this year. For a vehicle that sits in the ₹40–50 lakh range, the drop is substantial enough to shift buyer interest in favour of Skoda.

Kushaq and Slavia Get Festive Boost

The Kushaq, positioned in the compact SUV space, also sees attractive reductions. Buyers can save up to ₹66,000 through GST cuts, with festive offers worth another ₹2.5 lakh available until September 21. Together, this results in savings of about ₹3.16 lakh. This adjustment helps the Kushaq compete more closely with established rivals like the Hyundai Creta and Kia Seltos.

The Slavia sedan benefits as well, with up to ₹63,000 reduced through GST revisions and a further ₹1.2 lakh in dealer-level offers, making for a total of ₹1.83 lakh. In a segment where models such as the Honda City and Hyundai Verna have long dominated, this pricing move strengthens Skoda’s hand.

Best selling Kylaq also gets big price cuts

The Kylaq sub-4 meter compact SUV is Skoda's best selling car, bringing more than 50 % of the brand's volumes. The shift to the 18 % regime on sub-4 meter cars has meant that the Kylaq now starts from Rs. 7.54 lakh, which makes it about Rs. 70,000 cheaper than before. The greatest price reduction is on the Prestige AT trim, which is now priced at Rs. 12.79 lakh, after getting a 1.19 lakh price reduction.

GST 2.0 and Skoda’s Strategy

The GST 2.0 reform has reshaped taxation across the auto industry, simplifying multiple slabs into three key brackets. For Skoda, this means smaller models such as certain compact variants now attract 18 percent GST instead of 28 percent, while larger SUVs and sedans are covered under a flat 40 percent bracket.

Previously, premium models like the Kodiaq faced a 28 percent GST plus compensation cess, which pushed the overall tax burden to nearly 50 percent. With the cess removed, Skoda is passing the difference directly to customers.

Crucially, Skoda has front-loaded these savings by offering GST-equivalent pricing before the new rates officially take effect. This prevents potential buyers from delaying purchases and ensures showroom traffic remains steady during the festive build-up.

Buyers Gain from the Dual Offer

For customers, the limited-time window creates the most favourable buying opportunity in recent years. Those purchasing before September 21 can secure both GST-equivalent pricing and the festive discounts. After September 22, while GST benefits will continue, the additional dealer offers may no longer apply.

The scale of the reductions makes a tangible difference. A ₹5.8 lakh saving on the Kodiaq brings it closer to rivals while boosting its value proposition. The Kushaq’s ₹3.16 lakh benefit makes it a more compelling option against mainstream competitors, while the Slavia’s ₹1.83 lakh total cut enhances its standing in the sedan category.