Tata Motors Announces Price Cut Up to Rs 1.45 Lakh on Cars from Sept 22

Tata Motors on Friday announced a price reduction of up to Rs 1.45 lakh across its passenger vehicle range, effective September 22, following the implementation of the GST 2.0 regime, Reuters reported.

The company said it will pass on the full benefits of the GST 2.0 reforms to its customers. The new GST framework offers the automobile sector significant relief through simplified tax rates, designed to boost industry recovery amid sluggish sales.

Under GST 2.0, the previous complex system has been consolidated into two slabs, 5% and 18%, while additional vehicle cess has been removed, making cars more affordable for buyers.

For small cars with engine capacities up to 1,200 cc for petrol, LPG, and CNG, and up to 1,500 cc for diesel, the GST rate has been cut to 18% from the previous 28% plus cess, effectively lowering the cost of entry-level models.

Larger cars and SUVs, which were earlier subject to effective tax rates of 43–50% due to the additional cess, will now attract a flat 40% GST. The removal of the cess has not only reduced the overall tax burden but also simplified the pricing structure, making vehicle taxation more transparent for buyers.

Industry experts say the combined effect of lower vehicle prices and simplified GST could act as a key driver for sales, while also encouraging credit-based purchases through banks and NBFCs in semi-urban and rural markets.

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