With goods and service tax (GST) coming into effect from July 1, 2017, Jaguar Land Rover on Tuesday announced that post GST the company will reduce the prices by up to 12%. 

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Such benefits, which will vary from state to state and will be in the range of Rs. 2 lakh to Rs. 5.7 lakh on Jaguar XE and will go up to Rs. 4 to Rs. 10.9 lakh on Jaguar XJ. On Land Rover models i.e. Discovery Sport and Range Rover Evoque, the benefits will vary from Rs. 3.3 Lakh to Rs. 7.5 lakh, the company said. 

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Commenting on the implementation of GST, Rohit Suri, President and Managing Director, Jaguar Land Rover India, said, “Implementation of GST is a historical moment for India which will not only benefit consumers but is also expected to make the whole tax regime simpler and more transparent. In support of this initiative from the Government of India and in line with Jaguar Land Rover’s Customer First philosophy of also being transparent and dependable, we are pleased to proactively pass on benefits linked to the expected price reduction to our customers with immediate effect.”

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After luxury car makers Mercedes, BMW and Audi announced reduction in the prices post GST, now JLR said that such reduction linked benefits will be passed onto the customers with immediate effect on select stock of vehicles.

The government has announced the base GST rate of 28%, which is lesser for larger vehicles. However, there is an additional 15% cess levied on large cars including luxury vehicles. This brings the GST rate on luxury cars to 43%.

Despite the additional cess the tax on luxury cars is much less than the current rates which are between 47-53%, depending the states.