Tata Motors has announced plans to lower the prices of its passenger vehicles, with potential reductions reaching up to Rs 1.45 lakh, in line with the recently implemented GST reforms. These price changes are scheduled to be implemented from September 22. The company indicated that it will pass on the entire advantage of GST 2.0 to its customers.
The revised and simplified tax rates associated with GST 2.0 are anticipated to be a positive development for the automotive industry, potentially aiding in market recovery given the current sales trends. The GST Council simplified the tax system with two primary tax rates, 5% and 18%, and eliminated the cess on vehicles.
Petrol, LPG, and CNG vehicles with engines under 1200cc and a length under 4,000 mm, along with diesel vehicles up to 1,500cc and 4,000 mm in length, will now have an 18% GST applied, instead of the prior 28%.
All petrol cars with engines above 1200cc and diesel vehicles exceeding 1500cc will be subject to a 40% GST.
A 40% GST will be levied on all automobiles with engines larger than 1200cc and a length over 4,000 mm, motorcycles above 350cc, racing cars, and personal yachts and aircraft.
Electric vehicles will continue to be taxed at a rate of 5%, while three-wheelers will be subject to an 18% GST.