New Delhi, 20 August (Kiran News). This Diwali, the Modi government is planning to reduce GST on several items, including small cars. This move is expected to make it easier for the middle class to buy cars. It is believed that GST may be reduced from 28% to 18%, resulting in a direct 10% cut, though the government has not officially confirmed the exact reduction yet. Let’s see how much Tata cars could cost after the expected GST cut.
Currently, Cars Attract 29% Tax
For example, if the base (ex-factory) price of a small car is ₹5,00,000, after adding 28% GST and 1% cess (total 29%), the final price becomes ₹6,45,000. If the government reduces GST by 10% to 18%, the new price will be ₹5,90,000—giving customers a benefit of ₹55,000. Similarly, for a small car priced at ₹10 lakh, the savings can be up to ₹1,10,000.
Savings on Tata Cars if GST Drops from 28% to 18%
| Model | Current Starting Ex-showroom Price | 29% Tax (28% GST + 1% Cess) | 19% Tax (18% GST + 1% Cess) | Expected Savings |
|---|---|---|---|---|
| Tiago | ₹4,99,990 | ₹1,44,997 | ₹94,998 | ₹49,999 |
| Punch | ₹5,99,900 | ₹1,73,971 | ₹1,13,981 | ₹59,990 |
| Tigor | ₹5,99,990 | ₹1,73,997 | ₹1,13,998 | ₹59,999 |
| Altroz | ₹6,89,000 | ₹1,99,810 | ₹1,30,910 | ₹68,900 |
| Nexon | ₹7,99,990 | ₹2,31,997 | ₹1,51,998 | ₹79,999 |
| Curvv | ₹9,99,990 | ₹2,89,997 | ₹1,89,998 | ₹99,999 |
| Harrier | ₹14,99,990 | ₹4,34,997 | ₹2,84,998 | ₹1,49,999 |
| Safari | ₹15,49,990 | ₹4,49,497 | ₹2,94,498 | ₹1,54,999 |
How the Prices Will Change
If GST is reduced from 28% to 18%, Tata Motors cars will see significant tax savings. For example:
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The current starting ex-showroom price of the Tiago is ₹4,99,990, with ₹1,44,997 as 29% tax. With 19% tax, only ₹94,998 will be charged, saving about ₹49,999.
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For the Punch, the current price is ₹5,99,900 with ₹1,73,971 tax. With the lower tax, only ₹1,13,981 will be charged, saving about ₹59,990.
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The Altroz will be cheaper by about ₹68,900, and the Nexon by about ₹79,999.
Larger models like the Harrier and Safari will also see big savings, up to ₹1,49,999 and ₹1,54,999 respectively.
Expected Price List After GST Cut
Car buyers can expect a substantial reduction in prices if the GST is officially reduced. The potential GST cut will provide a major benefit for customers looking to purchase Tata vehicles this festive season.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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