Effect of GST on Car Prices in India, Maxabout News
Effect of GST on Car Prices in India
Influence of GST on Indian Car Industry | Effect of GST on Car Prices in India
Influence of GST on cars was a big positive budge in overall terms. Implementation of GST not just helped government simplify tax structures but on the same time, helped consumers build up happiness with considerable switches in pricing on various products.
When it comes to cars, GST had positive effects in basic segments while clearly visible switches were seen in higher segment. Understanding the influence very first requests the skill of segmentation of cars in India. We will very first let you know how government divides cars that are driven all around the country.
Car segmentation by Government of India
Four different segment of cars are available in our country. These are puny cars, mid-size cars, SUVs and luxury cars. The puny car segment is further divided into two segments that can be classified on the basis of the engine.
Petrol cars with length less than four meters and engine smaller than 1.2L falls in the very first sub-segment while Diesel cars with same length clause and engine less than 1.Five liter fall in the 2nd sub-segment. SUVs include cars which are more than four meter in length, have thicker engine than 1.5L and ground clearance higher than 170mm.
Luxury cars are those which simply does not have the ground clearance clause and rest all remains the same as SUVs. The puny cars presently attract a tax rate of twenty nine percent for petrol and thirty one for diesel engines. After GST, the value remains twenty eight percent plus extra cess of one percent on petrol and three percent on diesel cars.
This counts to the same value and hence, no major switch in price will be was seen in this petite car segment. The switch in ex-showroom price of puny cars in Delhi was around just INR 1,000 while states where high octroi was charged eyed a dip in price of around INR Ten,000-15,000 or more. The same trend was seen in mid size cars as they even were free from the extra charges in most states. The difference was even thicker in this case as they had much fatter ex-factory price tags.
SUVs are cheaper after implementation of GST in India
SUVs were taxed at fifty five percent before GST. This number fell straight to forty three percent after the implementation of GST. This has made cars cheaper by a considerable margin and thus, most luxury brands will see an increase in their overall sales in the coming months. Isuzu recently slashed the price of their recently launched MU-X by INR 1.50 lakhs in India. Even Toyota and Ford are suggesting around INR 2-3 lakh off from their Fortuner and Endeavour.
Luxury cars get yam-sized price cuts with effect from July 1, 2017
Luxury cars were the highest taxed segment of cars and now, they even fall under the same forty three percent GST slab. This resulted in hefty price cuts across all manufacturers, suggesting up to four lakh of price cut for a car that cost around INR fifty lakh. All three German luxury car brands: Mercedes, Audi, and BMW have announced price cut in almost all models and passed the benefit of GST to the customers. The very first session of price cuts were improvised while actual prices were updated on July 1, 2017.
Effect of GST on Car Prices in India, Maxabout News
Effect of GST on Car Prices in India
Influence of GST on Indian Car Industry | Effect of GST on Car Prices in India
Influence of GST on cars was a large positive budge in overall terms. Implementation of GST not just helped government simplify tax structures but on the same time, helped consumers build up happiness with considerable switches in pricing on various products.
When it comes to cars, GST had positive effects in basic segments while clearly visible switches were seen in higher segment. Understanding the influence very first requests the skill of segmentation of cars in India. We will very first let you know how government divides cars that are driven all around the country.
Car segmentation by Government of India
Four different segment of cars are available in our country. These are petite cars, mid-size cars, SUVs and luxury cars. The puny car segment is further divided into two segments that can be classified on the basis of the engine.
Petrol cars with length less than four meters and engine smaller than 1.2L falls in the very first sub-segment while Diesel cars with same length clause and engine less than 1.Five liter fall in the 2nd sub-segment. SUVs include cars which are more than four meter in length, have fatter engine than 1.5L and ground clearance higher than 170mm.
Luxury cars are those which simply does not have the ground clearance clause and rest all remains the same as SUVs. The puny cars presently attract a tax rate of twenty nine percent for petrol and thirty one for diesel engines. After GST, the value remains twenty eight percent plus extra cess of one percent on petrol and three percent on diesel cars.
This counts to the same value and hence, no major switch in price will be was seen in this petite car segment. The switch in ex-showroom price of puny cars in Delhi was around just INR 1,000 while states where high octroi was charged spotted a dip in price of around INR Ten,000-15,000 or more. The same trend was seen in mid size cars as they even were free from the extra charges in most states. The difference was even thicker in this case as they had much thicker ex-factory price tags.
SUVs are cheaper after implementation of GST in India
SUVs were taxed at fifty five percent before GST. This number fell straight to forty three percent after the implementation of GST. This has made cars cheaper by a considerable margin and thus, most luxury brands will see an increase in their overall sales in the coming months. Isuzu recently slashed the price of their recently launched MU-X by INR 1.50 lakhs in India. Even Toyota and Ford are suggesting around INR 2-3 lakh off from their Fortuner and Endeavour.
Luxury cars get gigantic price cuts with effect from July 1, 2017
Luxury cars were the highest taxed segment of cars and now, they even fall under the same forty three percent GST slab. This resulted in thick price cuts across all manufacturers, suggesting up to four lakh of price cut for a car that cost around INR fifty lakh. All three German luxury car brands: Mercedes, Audi, and BMW have announced price cut in almost all models and passed the benefit of GST to the customers. The very first session of price cuts were makeshift while actual prices were updated on July 1, 2017.
Effect of GST on Car Prices in India, Maxabout News
Effect of GST on Car Prices in India
Influence of GST on Indian Car Industry | Effect of GST on Car Prices in India
Influence of GST on cars was a ample positive stir in overall terms. Implementation of GST not just helped government simplify tax structures but on the same time, helped consumers build up happiness with considerable switches in pricing on various products.
When it comes to cars, GST had positive effects in basic segments while clearly visible switches were seen in higher segment. Understanding the influence very first requests the skill of segmentation of cars in India. We will very first let you know how government divides cars that are driven all around the country.
Car segmentation by Government of India
Four different segment of cars are available in our country. These are petite cars, mid-size cars, SUVs and luxury cars. The puny car segment is further divided into two segments that can be classified on the basis of the engine.
Petrol cars with length less than four meters and engine smaller than 1.2L falls in the very first sub-segment while Diesel cars with same length clause and engine less than 1.Five liter fall in the 2nd sub-segment. SUVs include cars which are more than four meter in length, have fatter engine than 1.5L and ground clearance higher than 170mm.
Luxury cars are those which simply does not have the ground clearance clause and rest all remains the same as SUVs. The puny cars presently attract a tax rate of twenty nine percent for petrol and thirty one for diesel engines. After GST, the value remains twenty eight percent plus extra cess of one percent on petrol and three percent on diesel cars.
This counts to the same value and hence, no major switch in price will be was seen in this puny car segment. The switch in ex-showroom price of petite cars in Delhi was around just INR 1,000 while states where high octroi was charged spotted a dip in price of around INR Ten,000-15,000 or more. The same trend was seen in mid size cars as they even were free from the extra charges in most states. The difference was even thicker in this case as they had much fatter ex-factory price tags.
SUVs are cheaper after implementation of GST in India
SUVs were taxed at fifty five percent before GST. This number fell straight to forty three percent after the implementation of GST. This has made cars cheaper by a considerable margin and thus, most luxury brands will see an increase in their overall sales in the coming months. Isuzu recently slashed the price of their recently launched MU-X by INR 1.50 lakhs in India. Even Toyota and Ford are suggesting around INR 2-3 lakh off from their Fortuner and Endeavour.
Luxury cars get large price cuts with effect from July 1, 2017
Luxury cars were the highest taxed segment of cars and now, they even fall under the same forty three percent GST slab. This resulted in large price cuts across all manufacturers, suggesting up to four lakh of price cut for a car that cost around INR fifty lakh. All three German luxury car brands: Mercedes, Audi, and BMW have announced price cut in almost all models and passed the benefit of GST to the customers. The very first session of price cuts were improvised while actual prices were updated on July 1, 2017.
Effect of GST on Car Prices in India, Maxabout News
Effect of GST on Car Prices in India
Influence of GST on Indian Car Industry | Effect of GST on Car Prices in India
Influence of GST on cars was a massive positive stir in overall terms. Implementation of GST not just helped government simplify tax structures but on the same time, helped consumers build up happiness with considerable switches in pricing on various products.
When it comes to cars, GST had positive effects in basic segments while clearly visible switches were seen in higher segment. Understanding the influence very first requests the skill of segmentation of cars in India. We will very first let you know how government divides cars that are driven all around the country.
Car segmentation by Government of India
Four different segment of cars are available in our country. These are petite cars, mid-size cars, SUVs and luxury cars. The puny car segment is further divided into two segments that can be classified on the basis of the engine.
Petrol cars with length less than four meters and engine smaller than 1.2L falls in the very first sub-segment while Diesel cars with same length clause and engine less than 1.Five liter fall in the 2nd sub-segment. SUVs include cars which are more than four meter in length, have fatter engine than 1.5L and ground clearance higher than 170mm.
Luxury cars are those which simply does not have the ground clearance clause and rest all remains the same as SUVs. The puny cars presently attract a tax rate of twenty nine percent for petrol and thirty one for diesel engines. After GST, the value remains twenty eight percent plus extra cess of one percent on petrol and three percent on diesel cars.
This counts to the same value and hence, no major switch in price will be was seen in this puny car segment. The switch in ex-showroom price of puny cars in Delhi was around just INR 1,000 while states where high octroi was charged witnessed a dip in price of around INR Ten,000-15,000 or more. The same trend was seen in mid size cars as they even were free from the extra charges in most states. The difference was even fatter in this case as they had much fatter ex-factory price tags.
SUVs are cheaper after implementation of GST in India
SUVs were taxed at fifty five percent before GST. This number fell straight to forty three percent after the implementation of GST. This has made cars cheaper by a considerable margin and thus, most luxury brands will see an increase in their overall sales in the coming months. Isuzu recently slashed the price of their recently launched MU-X by INR 1.50 lakhs in India. Even Toyota and Ford are suggesting around INR 2-3 lakh off from their Fortuner and Endeavour.
Luxury cars get phat price cuts with effect from July 1, 2017
Luxury cars were the highest taxed segment of cars and now, they even fall under the same forty three percent GST slab. This resulted in gigantic price cuts across all manufacturers, suggesting up to four lakh of price cut for a car that cost around INR fifty lakh. All three German luxury car brands: Mercedes, Audi, and BMW have announced price cut in almost all models and passed the benefit of GST to the customers. The very first session of price cuts were makeshift while actual prices were updated on July 1, 2017.
