India, Sept. 6 -- Mahindra & Mahindra Ltd. (M&M), one of India's leading carmakers, said it is passing on full GST benefits to customers starting September 6, offering a price cut of up to Rs.1.6 lakh on its cars eligible for the Goods and Services Tax reduction announced by the central government earlier this week.

Mahindra & Mahindra manufactures cars only in the SUV segment. GST has been reduced from 28 per cent to 18 per cent on diesel driven motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm.

GST has also been reduced from 28 per cent to 18 per cent on small cars and motorcycles equal to or below 350cc.

Petrol and diesel cars of bigger engine capacity paid an effective tax of nearly 50 per ...