The Tata Punch has gained significantly from the price advantages out of India’s new GST 2.0 tax regime. The revised tax for small petrol and CNG cars now comes to 18% (since cess is removed), earlier a whopping combined rate of 29%. Immediate drop in ex-showroom prices for various Punch variants. Savings that can be made by buyers depending on trim and transmission, will be a few thousand rupees on entry-level trims going up to nearly Rs 88,000 on top variants. We dive into all changes brought about as well as savings with respect to different trims of the Punch.
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What Changed With GST 2.0?
Under GST 2.0, small cars below 4 metres running on petrol or CNG with engine capacity up to 1,200cc, do not attract
the earlier 1% cess, and higher effective tax rates, which made the total tax incidence go up to 29%. Hence, a flat 18% reduced tax directly translates into price cuts across Punch's entire lineup. The revised tax rates will be applicable from September 22, 2025.
How Much You Save
Savings on car differ based on the variant and gearbox option. Reductions in the petrol manual versions come mostly between Rs 52,700 to Rs 82,800 approximately. For example, Pure variant is reduced from about Rs 5.99 lakh to around Rs 5.67 lakh, whereas for the top-end Creative variants, it can go up to a maximum of Rs 82,800. The actual reductions are even higher for the Automatic Manual Transmission (AMT) variants, with some Creative AMT trims reduced by as much as Rs 87,900. Even the CNG versions get cheaper, with savings falling mostly within the range of Rs 62,000 to Rs 86,600, depending upon variant to variant. These numbers have been updated by the manufacturers after recent changes in taxes.
Petrol, AMT And CNG — Who Gains Most?
Percentage-wise, mid- and top-spec variants see the largest savings because their higher ex-showroom price carried a bigger tax component previously. AMT variants, often pricier than their manual counterparts, therefore register the biggest cuts in absolute terms. CNG buyers benefit not only from lower running costs but also substantial one-time savings after the new tax is applied.
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What This Means For Buyers
Reduced ex-showroom prices result in lower on-road prices as well because registration, insurance, and state levies are all calculated on the declared price of the vehicle. Immediate drops in on-road costs can be expected for deliveries or registrations completed on or after the effective date. However, final on-road pricing will still be determined by state taxes and dealer fees.
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