NEW DELHI: Mahindra & Mahindra Ltd. (M&M), one of India’s leading carmakers, said it is passing on full GST benefits to customers starting September 6, offering a price cut of up to Rs 1.6 lakh on its cars eligible for the Goods and Services Tax reduction announced by the central government earlier this week.
Mahindra & Mahindra manufactures cars only in the SUV segment. GST has been reduced from 28 per cent to 18 per cent on diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm.
GST has also been reduced from 28 per cent to 18 per cent on small cars and motorcycles equal to or below 350cc.
Petrol and diesel cars of bigger engine capacity paid an effective tax of nearly 50 per cent earlier, comprising 28 per cent GST plus a 22 per cent compensation cess. Under the new system, this has also been revised to a flat 40 per cent GST.
Mahindra cars after GST cut
Bolero/Neo: From 31% (GST + cess) to 18% – benefit of up to Rs 1.27 lakh
XUV3XO (Petrol): From 29% (GST + cess) to 18% – benefit of up to Rs 1.40 lakh
XUV3XO (Diesel): From 31% (GST + cess) to 18% – benefit of up to Rs 1.56 lakh
THAR 2WD (Diesel): From 31% (GST + cess) to 18% – benefit of up to Rs 1.35 lakh
THAR 4WD (Diesel): From 48% (GST + cess) to 40% – benefit of up to Rs 1.01 lakh
Scorpio Classic: From 48% (GST + cess) to 40% – benefit of up to Rs 1.01 lakh
Scorpio-N: From 48% (GST + cess) to 40% – benefit of up to Rs 1.45 lakh
Thar Roxx: From 48% (GST + cess) to 40% – benefit of up to Rs 1.33 lakh
XUV700: From 48% (GST + cess) to 40% – benefit of up to Rs 1.43 lakh
Tata Motors on Friday made a similar announcement, passing on GST benefits to its customers, effective September 22.
Agencies