Tata Motors on Friday announced that it will reduce the prices across its passenger vehicle range by Rs 1.45 lakh under the recently introduced GST reforms, Reuters reported. The price cut will take effect from September 22. All the benefits under the GST 2.0 will be passed on to the customers, the company said.
The reduced and simplified tax rates under GST 2.0 have provided significant relief to the automobile sector, which could now expect a boost in recovery amid sluggish sales. The GST Council simplified the complex system with two slabs – 5% and 18% – while also eliminating cess on vehicles.
Petrol, LPG and CNG vehicles with engines under 1200cc and length below 4,000 mm, along with diesel vehicles up to 1,500cc and 4,000 mm in length, will now attract 18 per cent GST instead of 28 per cent.
All petrol cars over 1200cc and diesel vehicles above 1500cc will be moved to 40 per cent GST.
A 40 per cent GST will be imposed on all automobiles above 1200cc and longer than 4,000 mm, motorcycles over 350cc, racing cars, and yachts and aircraft for personal use.
EVs will continue to attract a 5 per cent GST, while three-wheelers will be charged at 18 per cent.
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