With the government cutting excise and sales tax, tyre-maker Ceat decided to cut prices with immediate effect, passing on the entire benefit of the 2% excise cut to consumers. 

The Steel Authority of India Ltd (SAIL), JSW Steel and Ispat Industries have also decided to cut prices. "The excise duty cut will result in a reduction in the range of Rs 500-600 per tonne," said SK Roongta, chairman of SAIL. Steel products are priced between Rs30,000 to Rs40,000 per tonne. Prices of bulk cement may fall by Rs5 per 50 kg. 

The excise cut in automobiles is only for products currently levied at the general 10% rate, which excludes most vehicles except trucks. Small cars, two-wheelers and buses are at 8% while the excise duty on large cars is at 20%. Maruti Suzuki India chairman RC Bhargava welcomed the decision to continue with lower excise duty slabs beyond March 31.

Sindhu Bhattacharya & Khyati Dharamsi/ DNA-Daily News & Analysis Source: 3D Syndication