GST cuts: Car, bike, FMCG and online platforms reduce prices

• TNN

• Published On Sep 8, 2025 at 04:16 PM IST

GST rate cuts are translating into lower consumer prices, with automakers, FMCG firms, and online platforms passing on benefits just ahead of the festive season.

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GST cuts by govt have started to result in lower prices for consumers as companies cut prices across segments to pass on the benefits of reduced taxation. Car and two-wheeler companies as well as online platforms and FMCG sellers have started to pass on the benefits, especially as the tax cut has happened during the festive period.SUV major Mahindra & Mahindra on Saturday announced that it would “pass on the full GST benefits to customers” across its entire petrol/diesel portfolio. It said customers could avail of the lower prices, with a peak benefit of ₹1.6 lakh on XUV3XO (diesel) from Saturday itself, instead of Sep 22 when the new tax rates come into effect. Price cuts have also been announced on company models such as Thar (upwards of ₹1 lakh), Scorpio-N (₹1.45 lakh), and XUV700 (₹1.4 crore). Tata Motors on Friday announced price cuts from Sep 22. Renault has said it will slash prices, starting with ₹53,695 on the Triber and the Kiger (higher on premium versions), and ₹40,095 on the Kwid. “We believe this timely initiative will not only make our cars more accessible but also energise demand during the festive season,” Venkatram Mamillapalle, MD of Renault India, said.Classic Legends, which sells iconic bike brands such as Yezdi and Jawa, has also announced price cuts. “Govt’s bold and timely GST reforms will bring a tectonic shift… We will pass on 100% of the GST benefit to our customers,” Anupam Thareja, co-founder of Jawa Yezdi Motorcycles, said. Luxury brand BMW has also announced price cuts. For example, the BMW 3-Series will be priced lower by ₹3.4 lakh and 5-Series by ₹4.1 lakh.Flipkart has asked sellers on its platform to plan price revisions and pass on the GST cut benefits. “You are required to plan revision of prices of the notified goods and services, wherein the rate of tax is proposed to be reduced. Failure to do so is an offence that can attract scrutiny from regulatory authorities,” it said in a note. Queries sent to an Amazon spokesperson did not elicit a response.Flipkart and Amazon are launching their annual festive sales this year from Sep 23 (early access for members). Consumers have been deferring big ticket purchases to avail of the benefits of the new GST rates. FMCG companies, meanwhile, are awaiting guidelines from the govt on re-stickering, packaging and internally figuring out ways through which they will implement the changes on the ground.In consumer goods, a large part of the GST benefits will be passed through increase in grammage given that a lot of consumption in the industry happens through small packs where prices can’t be meaningfully reduced. “Unlike auto or durables, we sell crores of units every month. We are waiting for directions from govt,” said an industry executive on condition of anonymity.

Companies have said they will cut prices of big packs. “At ITC Foods, we propose to pass on the benefits to consumers in terms of either price revisions or additional grammage,” said Hemant Malik, executive director at ITC.

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