Overview

• Finance Ministry directed companies to update invoicing systems for the new 5% and 18% GST slabs with a 40% band for luxury and sin goods, and warned it will monitor prices to ensure benefits reach consumers.
• Automakers are cutting prices to pass on tax savings: Mahindra implemented reductions from Sept. 6 with benefits up to Rs 1.56 lakh, Hyundai announced cuts of Rs 60,000–Rs 2.40 lakh, and Tata confirmed model-wise reductions effective Sept. 22.
• Tata also detailed commercial-vehicle cuts of Rs 30,000 to Rs 4.65 lakh, while Renault and BMW announced price drops across select models ahead of the new rates taking effect.
• Revised vehicle fitment places small petrol/LPG/CNG cars up to 1,200 cc (diesel up to 1,500 cc) in the 18% slab, larger cars and SUVs at a flat 40%, and retains a 5% rate for electric vehicles.
• Retail and FMCG sectors are preparing operational changes, with Flipkart telling sellers to revise prices to reflect GST cuts and consumer-goods firms planning price or grammage adjustments.