Overview

• The government is enforcing pass-through of tax cuts, directing farm machinery makers to reduce prices, with tractors expected to be cheaper by about ₹41,000 to ₹63,000 and other equipment also marked down.
• Automakers and two-wheeler brands including Maruti Suzuki, Tata Motors, Hyundai, Mahindra, Toyota, Kia, Bajaj, TVS, Royal Enfield and Suzuki Motorcycle India have announced price cuts or discounts to reflect lower GST.
• Urban households will see lower outlays on many essentials and services as personal care items shift to 5% GST and salons, gyms and yoga now attract 5% without input tax credit, though food-delivery fees will carry 18% GST.
• Crisil estimates an annualised revenue impact of roughly ₹48,000 crore from the rationalisation but says it should not strain finances, citing broader compliance, new taxable services like e-commerce delivery and expected demand gains.
• States are issuing corresponding notifications—Uttarakhand confirmed revised rates from Sept. 22—and analysts forecast a pickup in vehicle demand through FY26–FY27 as GST-driven price cuts coincide with the festive season.