By News18,Varun Yadav

Copyright news18

GST Rate Cut On Auto: Passing down the benefits of GST rate rationalization on automobiles from September 22, Tata Motors’ luxury car-maker Jaguar Land Rover (JLR) announced to slash prices up to Rs 30.4 lakh in its lineup, ranging from Discovery to Defender.

Prices of JLR models, including Defender, Discovery and Range Rover are set to drop between Rs 4.5 lakh and Rs 30.4 with the immediate effect. “The GST rationalisation on luxury vehicles is a welcome move for customers and for the industry. This move will provide much-needed impetus, reinforcing our confidence in and commitment to India’s luxury market,” said Rajan Amba, Managing Director of JLR India.

Read More: GST 2.0: Planning To Buy A Car Or Bike? All You Need To Know About Tax Rate Changes On Vehicles

Before GST Cut (₹)
After GST Cut (₹)
Approx. Reduction

Discovery – Dynamic HSE
1.35 Cr – 1.39 Cr
1.30 Cr – 1.34 Cr

Discovery – Metropolitan Edition
1.75 Cr approx.
1.70 Cr approx.

Defender – 90 X-Dynamic HSE
1.10 Cr – 1.45 Cr
1.05 Cr – 1.39 Cr

Defender – 110 X-Dynamic HSE
1.15 Cr – 1.70 Cr
1.10 Cr – 1.65 Cr

Defender – 130 Outbound/Outpace
1.50 Cr – 1.65 Cr
1.44 Cr – 1.60 Cr

Defender – Octa Edition One (V8)
2.70 Cr – 2.98 Cr
2.59 Cr – 2.79 Cr
₹11–19 Lakh

Range Rover – 3.0 Diesel HSE (SWB)
2.40 Cr – 2.55 Cr
2.31 Cr – 2.48 Cr

Range Rover – 3.0 Petrol Autobiography (LWB)
2.60 Cr – 2.85 Cr
2.50 Cr – 2.75 Cr

Range Rover – SV Courage Edition (V8)

Range Rover – SV Masara Edition (Limited)

The government has slashed taxes on smaller vehicles from 28% to 18%. However, the GST rates have also been rationalised for luxury cars, SUVs and high-end motorbikes to 40%, compared with 28% GST (plus 17-22% compensation cess) earlier.

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.

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.

Read More: GST 2.0: Planning To Buy A Car Or Bike? All You Need To Know About Tax Rate Changes On Vehicles

In other news, Volvo Car India also announced to slash prices on internal combustion engine (ICE) models up to Rs 6.9 lakh from September 22.
In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a “historic Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.
Earlier, Jaguar Land Rover (JLR), the UK subsidiary of Tata Motors, provided a muted outlook for FY26, forecasting an EBIT margin between 5% and 7%, a decline from the 8.5% margin it achieved in the previous fiscal year.

In FY25, JLR generated a robust free cash flow of £1.5 billion. However, the company now expects that figure to fall “close to zero” in the current financial year. Despite this short-term weakness, JLR management is optimistic about the medium term, aiming to improve free cash flow from FY27 onward and targeting a return to a 10% EBIT margin—though no specific timeline has been disclosed.

JLR remains a critical driver of Tata Motors’ financial performance, contributing 71% to the company’s revenue and 80% of its overall profit in FY25. The average revenue per unit stood firm at over £70,000 on a year-on-year basis.