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How Mahindra Slashed SUV Prices Immediately, Even Before GST Rate Cut Takes Effect On September 22?
How Mahindra Slashed SUV Prices Immediately, Even Before GST Rate Cut Takes Effect On September 22?
Mahindra & Mahindra on Saturday said that it has reduced the prices of its passenger vehicles by up to Rs 1.56 lakh, with immediate effect. Though the GST Council-approved lower tax rates will become effective September 22, Mahindra is able to cut its SUV prices immediately. How?
“Everyone said 22nd Sept. We said NOW. Avail GST benefits starting 6th Sept," said Mahindra & Mahindra while cutting rates up to Rs 1.56 lakh on its SUVs, according to a post shared by its Chairman Anand Mahindra.
How Is It Possible?
Experts said that Mahindra's immediate price cut is a sales strategy.
“Although the new GST rates will legally apply only from September 22, companies like Mahindra are cutting prices immediately by lowering their ex-factory prices," said Aditya Bhattacharya, partner at King Stubb & Kasiva, Advocates and Attorneys.
He explained that GST is charged based on the date of invoicing. “By adjusting the base price now, manufacturers ensure that dealers can issue invoices at lower effective prices, passing the benefit directly to consumers without waiting for the official changeover. This also helps protect dealer margins and smoothens the transition for stock already in the supply chain."
According to him, the move is also strategic. Acting early builds consumer goodwill, gives Mahindra a competitive edge ahead of the festive season, and signals quick compliance with the government's intent that GST benefits should be passed on swiftly.
Rajarshi Dasgupta, executive director (tax) at AQUILAW, said this is essentially a discount.
“There is no reduction in price. It's a discount given to boost sales. Since cess will be abolished from September 22, 2025, companies want to push sales now so that input cess accumulated on stockpiles can be adjusted. Otherwise, customers would simply wait until after September 22 to buy cars, which would dampen dealer sales in the interim," Dasgupta added.
GST Council Rate Cut On Cars
The GST Council approved GST rate rationalisation on September 3, 2025, with effect from September 22, the first day of Navratri.
Petrol, CNG and LPG cars with engine capacity up to 1200cc and length up to 4000 mm will now attract 18% GST, lower from the earlier 28%. Diesel cars with engine capacity up to 1500cc and length up to 4000 mm also get the lower 18% GST rate.
Also Read: Mahindra's Latest Car Prices
Cars with engine capacity above 1200cc (petrol/CNG/LPG) or above 1500cc (diesel) or length more than 4000 mm will now attract a 40% GST, as compared with nearly 50% (28% GST + 17%-22% compensation cess) earlier.
Tata Motors, Renault Also Announce Price Cuts
Tata Motors on Friday said it will cut passenger vehicle prices ranging between Rs 65,000 and Rs 1.45 lakh, effective September 22.
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Its small car Tiago will see a price drop of Rs 75,000, Tigor Rs 80,000, and Altroz Rs 1.10 lakh. Similarly, the price of compact SUV Punch will come down by Rs 85,000 and that of Nexon by Rs 1.55 lakh. Mid-sized model Curvv would also see a price cut of Rs 65,000, Tata Motors said in a statement. Prices of company's premium SUVs – Harrier and Safari, wll see a price reduction of 1.4 lakh and Rs 1.45 lakh respectively, it added.
Renault India on Saturday said it will reduce prices of its vehicles by up to Rs 96,395 to pass on full benefit of the recent GST rate cut to buyers. Price of entry level Kwid will come down by up to Rs 55,095, Triber by Rs 80,195 and Kiger by up to Rs 96,395. The revised pricing will be effective on all deliveries made on or after September 22, 2025, coinciding with the first day of Navratri, the automaker said in a statement.
Source: News18
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