GST Impact on Tata cars, Hexa’s price reduces by over Rs two lakh

Tata Motors' popularity in on the rise, thanks to the brand embracing fresh design, such as the Tiago. It was launched in April 2016 and the hatchback has received over 1 lakh bookings in the domestic market.

By: | Updated: July 8, 2017 12:56 PM


After the recently implemented Goods and Services Tax or GST, a number of carmakers have passed on the new tax structure's relaxation to potential car buyers. Larger cars such as SUVs and MPVs have benefitted the most out of GST. In lieu of the same, Tata Motors has started to pass on the benefit to its prospective customers with price cuts ranging from Rs 3,300 to Rs 2.17 lakh, based on the model and variant. The earlier tax structure included Excise Duty, NCCD (National Calamity Contingency Duty), Infra Cess, VAT (Value Added Tax) and CST (Central Sales Tax). The current tax structure for cars involves GST and additional cess basis the size and engine capacity of a vehicle. Small petrol and diesel cars like the Tata Tiago now incur 29 percent and 31 percent tax respectively. Cars in the SUV category like the Tata Hexa will now attract GST of 28 percent and additional cess of 15 percent, total amounting to 43 percent. The earlier tax structure for such vehicles attracted over 55 percent tax which included the aforementioned duties and taxes. With the implementation of GST, cars categorised in the SUV segment have seen the highest reduction in taxes.

Commenting on the price reduction, Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors, said, “We wholeheartedly welcome the initiative by the Union Government for introducing GST thereby bringing in one uniform tax across the country. This will enhance the ease of doing business and usher in a new era for the economy in general and especially, for the automotive industry. Following the roll out of GST, we have decided to pass on the entire benefit to our customers. We are offering a price reduction of up to 12% ranging between Rs 3300 and Rs 217000 depending on the model and variant. With a strong focus to encourage positive buying sentiments, we have taken this step."

Also Read: GST Impact on Tata Motors: Does it make sense to buy a Tata car after a discount of over Rs 2 lakh

The Indian carmaker's new Impact design philosophy has worked in favour of the new models. Since its launch, the Tata Tiago garnered considerable popularity selling over 65,000 units since its launch. The company is now set to enter the compact crossover segment with the introduction of the Nexon which is expected to be introduced this year itself.