Tata Tiago Price After GST Cut - Old vs New Price of Tiago

Published on 17 Sept, 2025, 10:13 AM IST

Updated on 17 Sept, 2025, 12:35 PM IST

Team Ackodrive

6 min read

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The Tata Tiago has been a consistent performer in Tata Motors’ lineup, offering a stylish design, solid build quality, and multiple powertrain choices at an accessible price point. It is powered by a 1.2-litre Revotron petrol engine and is also available with factory-fitted CNG variants, making it one of the most versatile hatchbacks in the entry-level segment.

Until now, the Tiago—like other small cars under 4 metres with petrol engines up to 1.2 litres—was taxed at 28% GST plus 1% cess (29% total tax). However, under the new GST 2.0 structure effective from September 22, 2025, this has been replaced with a flat 18% GST.

This results in a significant price drop, making the Tiago more affordable across its petrol and CNG range.

Contents

Tata Tiago (Petrol Variants) New Prices after the GST Cut

The petrol-powered Tiago variants see a significant reduction in ex-showroom prices. Buyers opting for the base XE or the top-spec XZ Plus will benefit from the lower GST structure.

Tiago Variant	Old Price (Ex-showroom)	New Price (Ex-showroom)	Reduction	Reduction (%)
XZA	₹7,54,990	₹6,90,790	₹64,200	8.50%
XZ Plus	₹7,39,990	₹6,76,990	₹63,000	8.51%
XZ Plus (DT)	₹7,39,990	₹6,76,990	₹63,000	8.51%
XZ	₹6,99,990	₹6,40,390	₹59,600	8.51%
XTA	₹6,89,990	₹6,31,290	₹58,700	8.51%
XT	₹6,34,990	₹5,80,990	₹54,000	8.50%
XM	₹5,79,990	₹5,30,690	₹49,300	8.50%
XE	₹4,99,990	₹4,57,490	₹42,500	8.50%

Tata Tiago (CNG Variants) New Prices after the GST Cut

The Tata Tiago CNG variants are also cheaper under the revised GST structure. Since CNG variants fall under the same small car bracket (under 4 metres, 1.2-litre engine), they too shift from 29% tax to 18% flat GST.

Tiago Variant	Old Price (Ex-showroom)	New Price (Ex-showroom)	Reduction	Reduction (%)
XZA CNG	₹8,54,990	₹7,82,190	₹72,800	8.51%
XZ CNG	₹7,99,990	₹7,31,890	₹68,100	8.51%
XTA CNG	₹7,89,990	₹7,22,790	₹67,200	8.51%
XT CNG	₹7,34,990	₹6,72,490	₹62,500	8.50%
XM CNG	₹6,79,990	₹6,22,090	₹57,900	8.51%
XE CNG	₹5,99,990	₹5,48,990	₹51,000	8.50%

Why have the prices been reduced for the Tata Tiago?

The price cut is driven by the government’s tax restructuring on small cars.

Old Tax: 28% GST + 1% cess = 29% total
New Tax: Flat 18% GST

That’s an 11% reduction, directly lowering the ex-showroom prices of all Tiago petrol and CNG trims.

Category	Old GST	Old Cess	Old Total Tax	New GST	New Total Tax	Change in Tax
Small cars (under 4m, ≤1,200cc petrol/CNG)	28%	1%	29%	18%	18%	11% lower than before

When are the new rates applicable?

The new GST rates come into effect from September 22, 2025. All Tata Tiago units invoiced or delivered on or after this date will carry the revised pricing.

If you are in the market for a compact entry-level hatchback, the Tata Tiago is a value-for-money option. With the GST rates revised, you can save up to ₹72,000, depending on the variant you choose.

Disclaimer: The new prices mentioned in this article are tentative and based on the revised GST rates applicable from 22 September 2025. Final ex-showroom prices may vary slightly as manufacturers and dealerships update their pricing structures in line with the new taxation policy.

Frequently Asked Questions

Here are a few commonly asked questions and their answers about the Tata Tiago price cut after the GST reduction.

Which Tata Tiago variants are cheaper now?

All petrol and CNG variants of the Tiago are cheaper under the revised GST.

How big is the price drop?

Depending on the variant, you will see a notable reduction, as the effective tax has dropped from 29% to 18%. The price drop stands at 8.50% to 8.51%, depending on the variant.

Will the on-road price also come down?

Yes. Since the on-road price is calculated based on the ex-showroom price, Tiago buyers will enjoy lower costs overall.

Does the Tiago still get a diesel option?

No, the Tiago is available only with a 1.2-litre petrol and CNG powertrain.

Could Tata adjust prices further?

Yes, while GST reductions directly impact ex-showroom prices, manufacturers may make minor revisions based on production costs and demand.

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