New GST Rates: Premium cars were also affordable, BMW cars became cheaper up to Rs 9 lakh

New GST Rates: Premium cars were also affordable, BMW cars became cheaper up to Rs 9 lakh

New Delhi. India's auto market is ready for major changes after the tax reform of the GST Council, which reduced rates in different categories and introduced a new simple structure. Luxury cars are placed in a 'Special Slab' of 40 percent, which used to be up to 50 percent earlier. It also included cess.

BMW cars became cheaper by 9 lakhs
For buyers of premium brands like BMW, Mercedes-Benz and Audi, it means 8–10 percent savings. BMW has announced that its main X7 SUV will now be available at a price of Rs 9 lakh, which will directly benefit the customers. Earlier, 28 percent GST and 20-22 percent cess were imposed on luxury vehicles, causing the total tax of about 50 percent. Now, under the new structure, a similar 40 percent tax is applied, which has made the high end models more competition in India's growing premium car market.

Tata's cars will also be cheaper

Buyers of the general market will also feel the difference. Tata Motors has announced a cut in prices up to Rs 1.45 lakh in its passenger vehicle line-up from 22 September, 2025.

Tata Tiago: Rs 75,000 less (ex-showroom Rs 4,99,990)
Tata Tigor: Rs 80,000 less (ex-showroom Rs 5,99,990)
Tata Altrose: 1.10 lakhs less (ex-showroom Rs 6,89,000)
Tata punch: 85,000 rupees less (ex-showroom Rs 6,19,990)
Tata Nexon: Rs 1.55 lakhs less (ex-showroom Rs 7,99,990)
Tata Curve: Rs 65,000 less (ex-showroom Rs 9,99,990)
Tata Harrier: Rs 1.40 lakhs less (ex-showroom Rs 14,99,990)
Tata Safari: 1.45 lakhs less (ex-showroom Rs 15,49,990)

Mahindra's cars also become cheap
Due to the decrease in GST, popular models of M&M such as Thar, Scorpio, Bolero, XUV 700 and Scorpio-N will now be available with significant savings ranging from Rs 1.01 lakh to Rs 1.56 lakh on the basis of models and variants. The prices of Bolero and Bolero Neo have come down by Rs 1.27 lakh, while the price of XUV3 XO petrol has been reduced by Rs 1.40 lakh, and the price of XUV3 XO diesel has come down by Rs 1.56 lakh.

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New GST Rate: No wait till 22 September, Mahindra's cars have become 1.56 lakhs cheap from today itself

New GST Rate: No wait till 22 September, Mahindra's cars have become 1.56 lakhs cheap from today itself

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Mahindra & Mahindra, Tata Motors and Reno have reduced the price of many cars including Scorpio, XUV700, Thar, Bolero, Tiago, Kwid to 1.56 lakhs after GST rate cuts.

New Delhi. To give the benefit of recent cuts in GST rate to its buyers, Mahindra & Mahindra on Saturday announced a price reduction in the price of Rs 1.56 lakh on sports utility vehicles (SUVs) like Scorpio, XUV700, Thar and Bolero. This price deduction will be effective from September 6, which came after the government reduced the effective GST rates on vehicles earlier this week.

The GST Council approved the tax deduction earlier this week. However the new GST rates will be effective from September 22, 2025, which is the first day of Navratri; Mahindra has announced an immediate price cut from 22 September today. After the GST rate cut, Mahindra's SUV line-up has become more cheaper, which will save buyers from Rs 1.01 lakh to Rs 1.56 lakh according to the model. Mahindra & Mahindra only make cars in the SUV segment.

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New GST Rate: Nexon, Harrier, Safari, how cheap will Tata cars be? Company announced, see full list here

New GST Rate: Nexon, Harrier, Safari, how cheap will Tata cars be? Company announced, see full list here

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The GST reform will reduce the price of several cars including Tata Motors Nexon, Safari, Harrier from 22 September 2025, which will make personal mobility more cheaper in India.

New Delhi. The recent Goods and Service Tax (GST) Reforms have given great relief to all industries. This tax relief is expected to reach buyers in the near future. Tata Motors has become the first passenger segment brand of India, which has announced a revised price with new GST on its products. This price cut will be applicable from 22 September 2025, the day the new GST rates will be effective.

How much will be saved?
Now let's talk about the savings of GST, then the price of Nexon will be the highest cut, which is Rs 1.55 lakh, after which the price of safari and Harrier will be cut by Rs 1.45 lakh and Rs 1.40 lakh respectively.

Name Price cut (Rs.)
Tiago 75,000/-
Tigor 80,000/-
Altros 1,10,000/-
Punch 85,000/-
Nexon 1,55,000/-
Karve 65,000/-
Harear 1,40,000/-
Safari 1,45,000/-
New GST Rates

The revised GST structure has made cars more accessible to all categories of cars. Small cars with length less than 4 meters which will have petrol engines up to 1,200cc or diesel engines up to 1,500cc, now only 18% GST will attract GST, which was earlier 28%, making them 5–13% cheaper. Large cars with lengths more than 4 meters will now face 40% GST instead of 28%, but since the cess has now been removed, their total tax load has come down, which has reduced prices by 3-10%.

Personal mobility will be more affordable
While doing this announcement, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited said, “From 22 September 2025, the GST cut on the effective passenger vehicle from September 22, 2025 is a progressive decision that will make the personal mobility more affidavit for millions of people across India. According to the philosophy, Tata Motors will fully honor the spirit and purpose of this improvement and will give full advantage of the deduction in GST to our customers. ”

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Nexon, Harrier, Safari, how cheap will Tata cars be? The company announced

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