Overview

• The GST Council scrapped the 12% and 28% slabs, standardising most goods at 5% or 18% and creating a 40% band for specified luxury and sin items, with EVs unchanged at 5% and auto parts at 18%.
• Luxury brands detailed reductions tied to the new 40% flat levy, with Mercedes‑Benz, BMW and Audi listings showing cuts up to Rs 11 lakh and Jaguar Land Rover passing on benefits early with trims reduced by up to Rs 30.4 lakh.
• Mass‑market manufacturers set model‑wise reductions effective Sept. 22, including Tata Motors savings up to Rs 1.55 lakh and Honda cuts up to Rs 95,500, while Bajaj and Yamaha announced lower two‑wheeler prices with Bajaj benefits up to Rs 20,000 on bikes and Rs 24,000 on three‑wheelers.
• The Finance Ministry directed monthly market price checks to verify pass‑through, with the first reports due Sept. 30 and subsequent updates to the CBIC by the 20th of each month.
• Officials and industry expect lower prices to lift demand and jobs across the auto ecosystem, even as the Centre acknowledges the GST rationalisation implies a near Rs 48,000 crore revenue shortfall.