The recent Goods and Service Tax (GST) reforms have brought a huge relief for manufacturers across all industries. Most mass-market automobile manufacturers are delighted with the rate cuts in GST and abolition of compensation cess which has reduced the tax burden on them.
This tax relief is expected to be passed on to consumers in the near future. Tata Motors has become the first manufacturer from the passenger vehicle (PV) industry to pass on the full benefit of the recent GST reduction on its cars and SUVs to customers. These price cuts will be applicable on effective 22 September 2025, the same day the new GST rates come into effect.
Making this announcement, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Ltd. & Tata Passenger Electric Mobility Ltd., said, “The reduction in GST on passenger vehicles, effective 22nd September 2025, is a progressive and timely decision that will make personal mobility more accessible for millions across India. In line with the Hon’ble Prime Minister’s vision, the Hon’ble Finance Minister’s intent and our Customer First philosophy, Tata Motors will fully honor the intent and spirit of this reform by passing on the entire benefit of the reduction in GST to our customers.”
Tata Motors cars price cut
The company has shared the price cut for each model.
| Nameplate | Reduction in Price (Rs.) |
| Tiago | up to 75,000/- |
| Tigor | up to 80,000/- |
| Altroz | up to 1,10,000/- |
| Punch | up to 85,000/- |
| Nexon | up to 1,55,000/- |
| Curvv | up to 65,000/- |
| Harrier | up to 1,40,000/- |
| Safari | up to 1,45,000/- |
From the table above, we find out that the Nexon is set for the highest price reduction of Rs 1.55 lakh followed by Safari and Harrier at Rs 1.45 lakh and Rs 1.40 lakh. The homegrown carmaker is expected to announce the revised prices of each variant of every model in the lineup soon.
New GST rates: Cars become cheaper
The revised GST structure has made cars across segments more affordable. Small cars under 4 metres with petrol engines up to 1,200cc or diesel up to 1,500cc will now attract only 18% GST, down from 28%, making them 5–13% cheaper. Larger cars over 4 metres with bigger engines will face 40% GST instead of 28%, but since the cess has been removed, their overall tax burden is lower, reducing prices by 3–10%.
On the other hand, luxury brands like Mercedes-Benz, Audi, BMW, and Jaguar Land Rover, earlier taxed at 50% (28% GST plus 22% cess), will now face a flat 40% tax, significantly lowering costs. This update benefits buyers across small, mid-size, and luxury car categories.
