Full-stack used car platform Spinny said on Thursday that it is implementing proactive price adjustments to its portfolio of cars to account for the GST price reductions on cars. It stated that it has decided to implement price drops across its inventory to maintain fairness and value for its customers.

“We have taken a proactive stance, adjusting prices before the GST reforms take effect,” said Hanish Yadav, senior vice president and business head at Spinny, in a statement. Buyers can now enjoy reduced prices across the Spinny inventory, with discounts of up to ₹2 lakh, made effective immediately. Sellers, on the other hand, benefit from continued buyer demand and better resale value, with potential benefits of up to ₹20,000 per car. It should be noted that GST on used cars has remained unchanged.

The recent overhaul of India’s GST framework introduces new tax slabs for the auto sector, 18% GST on small cars and two-wheelers, and 40% on larger and luxury vehicles, while auto component GST has been reduced from 28% to 18%. The overhaul is expected to drive demand from first-time car buyers and buyers in the suburban and hinterland areas for small cars, along with attracting more aspirational buyers for larger cars. The youth in villages and gig economy workers are targeted with the GST reduction on two-wheelers.

“Although these changes primarily target new vehicles, Spinny acknowledges their indirect impact on the used car ecosystem. Rather than wait for downstream effects to play out, Spinny has moved early, aligning pricing with the evolving market context to deliver immediate value,” Spinny added in a statement.

Earlier today, Maruti Suzuki India Limited, India’s largest maker of passenger vehicles, announced price cuts ahead of the implementation of the reduced GST rate, effective September 22. It is now offering reductions in the ex-showroom price of up to ₹1,29,600, which the sub-four-metre S-Presso will offer, with its starting price now reduced to ₹3,49,900. The Brezza and Fronx will also undergo massive price cuts, of up to ₹1,12,700 and ₹1,12,000, respectively, taking their starting prices to ₹6,84,900 and ₹8,25,900, respectively. The Alto K-10 will see its ex-showroom price slashed by up to ₹1,07,000, taking its starting price to ₹3,69,000.