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JLR India to pass on full GST benefits on luxury cars, SUVs from today
Range Rover SUVs are set to get cheaper by up to ₹30.4 lakh, while Defender and Discovery SUVs will cost up to ₹18.6 lakh and ₹9.9 lakh cheaper.
JLR India, owned by Tata Motors Ltd., has decided to pass on full benefits of new GST rates on cars, effective immediately, as the Land Rover maker looks to make the most of incoming festive demand.
“The GST rationalisation on luxury vehicles is a welcome move for customers and the industry,” Rajan Amba, managing director at JLR India, said in a statement on Tuesday. “This move will provide much-needed impetus, reinforcing our confidence in and commitment to India's luxury market.”
With that, Range Rover SUVs are set to get cheaper by ₹4.6 lakh to ₹30.4 lakh, even as the Defender and Discovery SUVs will cost up to ₹18.6 lakh and ₹9.9 lakh less.
On 4 September, the government reduced GST rates on hundreds of items—from small cars to soaps and SUVs—in India’s biggest indirect tax reforms since 1 July 2017 when Goods and Services Tax was first introduced. The GST on small cars has reduced to 18% from 28%. SUVs will now be taxed at a flat 40%, as against 28% plus a compensation cess that increased the total tax incidence to as much as 50% earlier.
The GST changes are officially effective from 22 September.
Earlier, on 6 September, Tata Motors became one of the first carmakers to pass on full GST benefits to buyers, thereby reducing prices by up to ₹1.55 lakh on its models. Tata Motors has an expansive portfolio, from small cars (Tiago, Tigor, Altroz, Punch and Nexon) to large cars (Curvv, Harrier and Safari) across body types.
On Tuesday, Tata Motors shares fell 0.54% to ₹715.50 apiece on the BSE even as the benchmark Sensex ended the day 0.39% higher at 81,101.32 points.
