Overview
- The GST Council’s refit moves most goods to 5% and 18% slabs with a distinct 40% band for sin and ultra‑luxury items, becoming effective on Sept. 22.
- Carmakers across segments have announced reductions, from mass models like Tata Nexon (up to Rs 1.55 lakh) to steep luxury cuts reported for Mercedes, BMW and Audi, while JLR says it is passing on benefits from Sept. 9.
- The government has asked manufacturers and dealers to display dealership posters comparing pre‑ and post‑cut prices to improve pass‑through transparency, according to industry reports.
- Dealers flag working‑capital strain and potential losses of roughly Rs 2,500 crore on old‑tax stock, with FADA warning that compensation‑cess credits could lapse without a transition mechanism under GST 2.0.
- Analysts estimate a demand lift of Rs 0.7–1 lakh crore and disinflationary effects, as the Centre pegs the revenue impact at about Rs 48,000 crore.