India, Sept. 6 -- Major automakers including Tata Motors, Mahindra & Mahindra, and Renault India have announced price cuts across their passenger vehicle portfolios after the Goods and Services Tax (GST) Council slashed rates on cars and auto components earlier this week.

The 56th GST Council decision, effective September 22, reduces the levy on small cars to 18% from the earlier 28%, while bigger cars and SUVs now fall under a flat 40% GST slab without any additional cess. Electric vehicles continue to attract 5% GST.

Petrol and diesel cars of bigger engine capacity, which earlier paid nearly 50% tax (28% GST plus 22% cess), will now face 40%. Diesel cars up to 1500 cc and less than 4,000 mm in length will be taxed at 18%. Small motorc...