GST rates slashed: Tata cars become cheaper; list of reductions in Tiago, Nexon, Safari prices

Car companies have announced price cuts on their vehicles after the central government reduced the Goods and Services Tax (GST) on small cars from 28 per cent to 18 per cent. Tata Motors, Mahindra and Mahindra, and Maruti Suzuki, India's top car sellers, have announced that they will pass on the benefits of the GST cut to buyers.

Tata Motors announced that it will drop the prices of its products up to Rs 1.55 lakh. A day before, Maruti Suzuki India Chairman RC Bhargava said that cars could become cheaper by 8.5-9 per cent.

Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said that his company will pass on the entire benefit of the GST reduction to customers.

The price of the Maruti Suzuki Alto might drop by Rs 40,000 to Rs 50,000. Wagon R's prices may drop between Rs 60,000 and Rs 67,000.

Here's a list of price reductions on Tata cars

1. Tiago - Rs 75000
2. Tigor- Rs 80000
3. Altroz- Rs 1,10,000
4. Punch- Rs 85000
5. Nexon- Rs 1,55,000
6. Curvv- Rs 65,000
7. Harrier- Rs 1,40,000
8. Safari- Rs 1,45,000. On Wednesday
9. Finance Minister Nirmala Sitharaman announced the Goods and Services Tax (GST) Council's decision to eliminate the 12 per cent and 28 per cent GST slabs and place most of the items of these categories into 5 per cent and 18 per cent slabs. It has also decided to form a new slab - 40 per cent - for sin goods. The new rates will be implemented from September 22, the first day of Navratri. Most of the goods and services in the eliminated slabs will get cheaper, including cars.
10. All small cars have been placed in the 18 per cent tax bracket. Motor vehicles in the category of Utility Vehicles, with an engine capacity exceeding 1500 cc, length exceeding 4000 mm, and ground clearance of 170 mm and above, will also attract a GST rate of 40% without any cess.