Tata Vehicles Cheaper: Tata Motors has announced to reduce the price of its vehicles. According to the Economic Times report, from September 22, Tata vehicles will be cheaper from Rs 65,000 to Rs 1.55 lakh.
The company has taken this decision after approving changes in GST rates. On September 3, the GST Council reduced the tax on small cars from 28% to 18%.
Tata Motors said that it will take full advantage of New GST rates to customers. The company believes that this change in GST rates will make it easy for people to buy cars and this will also increase the demand for modern vehicles in India.
Different Model Cars and Their Maximum Discounted Price (Tata Vehicles Cheaper)
| Model | Decreased price (Max.) |
|---|---|
| Tiago: An entry-level hatchback | Rs. 75,000 |
| Tigor: A compact sedan | Rs. 80,000 |
| Altroz: A premium hatchback | Rs. 1.10 Lakh |
| Punch: A micro-SUV | Rs. 85,000 |
| Nexon: A popular subcompact SUV | Rs. 1.55 Lakh |
| Curvv: A coupe-SUV | Rs. 65,000 |
| Harrier: A mid-size SUV | Rs. 1.40 Lakh |
| Safari: A 7-seater SUV | Rs. 1.45 Lakh |
GST change will make small car and 350cc bikes cheaper
GST has been reduced from 28% to 18% on petrol up to 1,200 cc or diesel trains up to 1,500 cc. This will make small vehicles like Maruti Swift, Alto and Nexon cheaper.
Apart from this, bikes up to 350cc like Honda Shine, Activa will also become cheaper. Commercial vehicles such as buses, trucks and ambulances have also come down from 28% to 18% GST.
Tata Car Model with Type and Ex-Showroom Price Range (INR)
| Car Model | Type | Ex-Showroom Price Range (INR) |
|---|---|---|
| Tiago | Hatchback | ₹ 5.00 Lakh – ₹ 8.55 Lakh |
| Tigor | Sedan | ₹ 6.00 Lakh – ₹ 9.55 Lakh |
| Punch | Micro-SUV | ₹ 5.99 Lakh – ₹ 10.32 Lakh |
| Altroz | Premium Hatchback | ₹ 6.89 Lakh – ₹ 11.49 Lakh |
| Nexon | Compact SUV | ₹ 7.99 Lakh – ₹ 15.60 Lakh |
| Harrier | Mid-Size SUV | ₹ 14.99 Lakh – ₹ 26.69 Lakh |
| Safari | 7-Seater SUV | ₹ 15.49 Lakh – ₹ 27.44 Lakh |
| Curvv | Coupe-SUV | ₹ 9.99 Lakh – ₹ 18.99 Lakh |
Electric Vehicle (EV) Lineup
| Car Model | Type | Ex-Showroom Price Range (INR) |
|---|---|---|
| Tiago EV | Electric Hatchback | ₹ 7.99 Lakh – ₹ 11.14 Lakh |
| Tigor EV | Electric Sedan | ₹ 12.49 Lakh – ₹ 13.75 Lakh |
| Punch EV | Electric Micro-SUV | ₹ 9.99 Lakh – ₹ 14.44 Lakh |
| Nexon EV | Electric Compact SUV | ₹ 12.49 Lakh – ₹ 17.19 Lakh |
| Harrier EV | Electric Mid-Size SUV | ₹ 21.49 Lakh – ₹ 30.23 Lakh |
| Curvv EV | Electric Coupe-SUV | ₹ 17.49 Lakh – ₹ 21.99 Lakh |
The price of luxury cars will also decrease
GST has been increased from 28% to 40% on luxury cars, but even then luxury vehicles like Mercedes-Benz, BMW and Audi may be a bit cheaper. This is because the compensation cess before GST in the new tax slab has been abolished.
Earlier luxury cars used to have a cess of up to 17-22% with 28% GST, causing the total tax to reach 50%. This made luxury cars quite expensive.
For example, if the price of Mercedes was earlier Rs 1 crore, then it had to pay a tax of about 50 lakh rupees. Now it can be limited to 40 lakh rupees.
Now the government has increased GST from 28% to 40% on trains with a capacity of 4,000 mm or more than 1,500 cc capacity. That is, the tax is increased, but the cess is removed.
Experts believe that there will be not much difference in the first and now due to the removal of cess. Overall, these vehicles may be a bit cheap, but the difference will not be much.
Compensation cess was imposed to protect states from damage
Compensation cess is an additional tax, which the government imposes on certain goods so that the states can compensate. When GST (Goods and Services Tax) came into force in 2017, many states felt that their tax earnings would be reduced.
To complete this, the central government started a compensation cess, which was imposed on expensive vehicles, cigarettes, liquor -like luxury or harmful items. This tax is extra over GST and the money deposited from it was paid to the states to compensate for their loss.
Read also: New GST Rate
