India’s recent GST overhaul has brought big savings for car buyers — especially for popular models like the Tata Nexon. With revised tax slabs and the removal of cess, certain variants of the Nexon are now more affordable by up to ₹1.55 lakh. Here’s what changed, how it affects you, and which variant offers the best deal.
What Changed at the GST Council
- GST rate adjustments: Small petrol cars (up to 1,200cc) and small diesel cars (up to 1,500cc) measuring under 4,000 mm now attract GST of 18%.
- Luxury tax hike: Higher tax slabs (up to 40%) now apply for luxury cars, which were previously taxed at lower rates.
- Cess removal: The additional cess levied on cars has been abolished, simplifying pricing and reducing cost.
These changes—part of what’s being called GST 2.0—took effect officially from 22 September 2025 for most brands. Tata Motors, however, applied the new taxation benefits earlier, starting 8 September 2025.
Tata Nexon: How Much Will You Save?
Depending on the variant and fuel type, savings on the Tata Nexon range significantly. Here’s a breakdown:
| Variant Type | Estimated Price Drop |
|---|---|
| Petrol models | Around ₹68,100 up to ₹1,25,200 |
| Diesel variants | Savings in the range of ₹99,100 to ₹1,54,700 |
| CNG versions | Decreases from approx ₹76,600 up to ₹1,23,500 |
Some of the more premium trims like “Fearless+ PS DK” or “Creative+ S DK” see the largest drops, often exceeding ₹1 lakh.
Best Value Options
If you’re shopping for value, here are a few trims worth considering:
- Mid-level diesel: The diesel “Pure+ S” or “Creative” trims gives strong fuel economy while offering substantial tax savings.
- Top trims with tech: Higher variants like “Creative+ DK” for both diesel and petrol now provide high-end features and comfort at a more accessible price due to GST cuts.
- CNG variants: For city commuters who want cleaner fuel and lower running costs, the CNG versions are now more affordable than ever.
Things to Keep in Mind
- On-road cost: Price cuts are on ex-showroom pricing. Registration, insurance, state taxes, and any other local levies will still add to the final bill.
- Fuel type & maintenance: Choose based on how you’ll use the car—petrol is cheaper up front, diesel may give better mileage on long drives, and CNG saves fuel cost but requires availability of CNG stations.
- Depreciation & resale: More popular and fuel-efficient variants tend to retain value better. Premium trims lose less value, even if initial purchase cost is higher.
- Dealership offers: Some dealers may combine the GST benefit with other discounts or exchange bonuses, so don’t forget to check what’s on the table when you negotiate.
Who Benefits the Most?
- Family buyers looking at larger variants with all the bells and whistles can finally get more features in the same price bracket thanks to the sizable tax reductions.
- First-time car owners who are open to base or mid trims will see excellent value with lowered entry-level costs.
- Commercial or ride-hailing users especially benefit if opting for variant types that were earlier taxed heavily — diesel or CNG variants are looking especially attractive now.
Final Word
If you’ve been postponing your Nexon purchase, this is a good time to revisit. The new GST regime makes higher variants more affordable and improves value across petrol, diesel, and CNG versions. Just keep an eye on overall cost of ownership—fuel, maintenance, and resale value—rather than just the sticker price.