GST: Automobile prices to switch from July 1
GST: Automobile prices to switch from July 1. Here’s how it will affect you
With just a few days before the Central Government rolls out the Goods and Service Tax (GST), we take a look at how the fresh tax regime will influence the automobile industry and what it means for the consumers. Will the fresh tax regime turn out to be on the customers side or will it affect the industry for the worst? We find out.
We had earlier reported, under GST, cars will attract the top rate of twenty eight per cent and a cess in the range of one to fifteen per cent on top of it. According to the rate structure finalised by the GST Council, all cars, buses, trucks and motorcycles including moped will attract a peak GST of twenty eight per cent.
While puny petrol cars with engine less than 1,200 cc will attract one per cent cess, that with a diesel engine of less than 1,500 cc will attract three per cent cess. Large cars with engine greater than 1,500 cc and SUVs with length more than four metres and engine greater than 1,500 cc will attract a cess of fifteen per cent.
2017 Maruti Suzuki Dzire
Industry analysts said the companies have been coerced to come up with the discounts as potential customers have held back on purchases expecting prices to come down after the implementation of GST.
Taxes on motorcycles are expected to reduce in most states with the implementation of the Goods and Services Tax (GST) from July one 2017, albeit benefits vary from state to state.
Under GST, most of the two-wheelers will attract a tax rate of twenty eight per cent, lower than total tax incidence of around thirty per cent at present. Motorcycles with engine capacity of over three hundred fifty cc, however, will attract an extra cess of three per cent.
ALSO READ: Arun Jaitley hints at no switch in GST rate on hybrid cars
Discounts on various models:
Country’s largest car-maker, Maruti Suzuki has upped its earlier discounts by up to Rs Ten,000. we had earlier reported that Maruti Suzuki is suggesting exchange bonus of up to Rs 25,000 and discounts up to Rs 15,000 on various models.
Hyundai India launched the two thousand seventeen Xcent compact sedan along with the fresh generation Grand i10, while the Tucson SUV was launched last year. For the month of May, Hyundai was suggesting exchange offers and discounts worth Rs 30,000. For the month of June, Hyundai has unofficially enlargened the discount on Grand i10 and Eon by almost dual.
Ford India is suggesting discounts of up to Rs 30,000 on its compact SUV EcoSport, sedan Aspire and hatchback Figo.
On the more premium front, Mercedes Benz announced slashing of prices of its vehicles produced in India by up to Rs seven lakh to pass on benefits of fresh tax rate under GST due in July.
2017 Hyundai Xcent
Audi slashed prices of its models in India by up to Rs ten lakh till June 30. The company sells a range of cars, ranging from A3 sedan to A8 premium sedan presently priced inbetween Rs 30.Five lakh and Rs 1.15 crore.
Isuzu Motors India is suggesting discounts on the freshly launched MU-X and V-Cross of up to Rs 1.Five lakh on ex showroom prices. While the fresh MU-X now comes with a diminished price tag of Rs 1.Five lakh, the V-Cross gets a discount of Rs 60,000.
Tata Motors-owned Jaguar Land Rover (JLR) has diminished prices of select models by up to Rs Ten.9 lakh from instantaneous effect to pass on benefits of fresh tax rates under GST expected to be flipped out in July.
In the two-wheeler space, niche bike maker Royal Enfield is pre-emptively extending the GST benefits to its customers while Bajaj Auto has also announced reduction in prices of its motorcycles by up to Rs Four,500 to pass on the expected benefit of GST to customers.
2015 Ford Aspire
What do the auto-makers have to say:
Rahil Ansari, Head, Audi India said, “As opposed to the market trend, this is not a measure to clear old stock; we are extending the benefits on our fresh cars as well.”
Roland Folger, MD and CEO, Mercedes-Benz India said, “Events like the diesel car ban in Delhi-NCR and GST now are bringing factor of uncertainty into our overall planning and we attempted to deal with it the best way possible. By September we have petrol versions for all our models.”
A Honda spokesperson said, “We are providing price protection to the customers for cars retailed from June ten to June thirty which means that customers will buy the car at pre-GST price now. Post GST implementation whatever the difference in ex-showroom price it will be returned back to the customer by the dealer.”
TVS Motor Company President and CEO K N Radhakrishnan said the GST would bring a lot of ease in doing business.
2017 Audi A4
Finance Minister Arun Jaitley hinted that the tax rate on hybrid cars will not be reviewed, telling the industry requests were not in sync with a explore conducted by tax officers.
The council had immobilized forty three per cent tax (28 per cent GST plus fifteen per cent cess) on hybrid cars, a rate that industry felt was too high for the fuel efficient vehicles.
Jaitley said, “We have done a detailed probe on auto industry request and a paper has been made which will be circulated among members. And, if necessary, it would come up for discussion. The fact that is being introduced (by the industry), according to the paper, is not correct.”
The automakers in their request to the GST Council had asked it to reduce the tax rate on hybrid vehicles to eighteen per cent, arguing that they are much more efficient and eco- friendly but require scale and volume to become economically viable.
Royal Enfield Continental GT
As per the proposed rates under the GST regime, hybrid vehicles have been put in the same category as big petrol and diesel luxury cars attracting twenty eight per cent rate with a cess of fifteen per cent. The tax incidence on hybrid vehicles will go up to forty three per cent from the current effective tax rate of 30.Three per cent. At present, hybrid vehicles attract excise duty of 12.Five per cent, similar to entry-level puny cars such as Tata Nano or Maruti Alto.
Even tho’ hybrid cars are exempt from infrastructure cess, there is a one per cent National Calamity Contingent Duty, two per cent Central Sales Tax and 12.Five per cent VAT, which takes the total incidence to 30.Trio per cent.
GST: Automobile prices to switch from July one
GST: Automobile prices to switch from July 1. Here’s how it will affect you
With just a few days before the Central Government rolls out the Goods and Service Tax (GST), we take a look at how the fresh tax regime will influence the automobile industry and what it means for the consumers. Will the fresh tax regime turn out to be on the customers side or will it affect the industry for the worst? We find out.
We had earlier reported, under GST, cars will attract the top rate of twenty eight per cent and a cess in the range of one to fifteen per cent on top of it. According to the rate structure finalised by the GST Council, all cars, buses, trucks and motorcycles including moped will attract a peak GST of twenty eight per cent.
While petite petrol cars with engine less than 1,200 cc will attract one per cent cess, that with a diesel engine of less than 1,500 cc will attract three per cent cess. Large cars with engine greater than 1,500 cc and SUVs with length more than four metres and engine greater than 1,500 cc will attract a cess of fifteen per cent.
2017 Maruti Suzuki Dzire
Industry analysts said the companies have been compelled to come up with the discounts as potential customers have held back on purchases expecting prices to come down after the implementation of GST.
Taxes on motorcycles are expected to reduce in most states with the implementation of the Goods and Services Tax (GST) from July one 2017, albeit benefits vary from state to state.
Under GST, most of the two-wheelers will attract a tax rate of twenty eight per cent, lower than total tax incidence of around thirty per cent at present. Motorcycles with engine capacity of over three hundred fifty cc, however, will attract an extra cess of three per cent.
ALSO READ: Arun Jaitley hints at no switch in GST rate on hybrid cars
Discounts on various models:
Country’s largest car-maker, Maruti Suzuki has upped its earlier discounts by up to Rs Ten,000. we had earlier reported that Maruti Suzuki is suggesting exchange bonus of up to Rs 25,000 and discounts up to Rs 15,000 on various models.
Hyundai India launched the two thousand seventeen Xcent compact sedan along with the fresh generation Grand i10, while the Tucson SUV was launched last year. For the month of May, Hyundai was suggesting exchange offers and discounts worth Rs 30,000. For the month of June, Hyundai has unofficially enhanced the discount on Grand i10 and Eon by almost dual.
Ford India is suggesting discounts of up to Rs 30,000 on its compact SUV EcoSport, sedan Aspire and hatchback Figo.
On the more premium front, Mercedes Benz announced slashing of prices of its vehicles produced in India by up to Rs seven lakh to pass on benefits of fresh tax rate under GST due in July.
2017 Hyundai Xcent
Audi slashed prices of its models in India by up to Rs ten lakh till June 30. The company sells a range of cars, ranging from A3 sedan to A8 premium sedan presently priced inbetween Rs 30.Five lakh and Rs 1.15 crore.
Isuzu Motors India is suggesting discounts on the freshly launched MU-X and V-Cross of up to Rs 1.Five lakh on ex showroom prices. While the fresh MU-X now comes with a diminished price tag of Rs 1.Five lakh, the V-Cross gets a discount of Rs 60,000.
Tata Motors-owned Jaguar Land Rover (JLR) has diminished prices of select models by up to Rs Ten.9 lakh from instantaneous effect to pass on benefits of fresh tax rates under GST expected to be flipped out in July.
In the two-wheeler space, niche bike maker Royal Enfield is pre-emptively extending the GST benefits to its customers while Bajaj Auto has also announced reduction in prices of its motorcycles by up to Rs Four,500 to pass on the expected benefit of GST to customers.
2015 Ford Aspire
What do the auto-makers have to say:
Rahil Ansari, Head, Audi India said, “As opposed to the market trend, this is not a measure to clear old stock; we are extending the benefits on our fresh cars as well.”
Roland Folger, MD and CEO, Mercedes-Benz India said, “Events like the diesel car ban in Delhi-NCR and GST now are bringing factor of uncertainty into our overall planning and we attempted to deal with it the best way possible. By September we have petrol versions for all our models.”
A Honda spokesperson said, “We are providing price protection to the customers for cars retailed from June ten to June thirty which means that customers will buy the car at pre-GST price now. Post GST implementation whatever the difference in ex-showroom price it will be returned back to the customer by the dealer.”
TVS Motor Company President and CEO K N Radhakrishnan said the GST would bring a lot of ease in doing business.
2017 Audi A4
Finance Minister Arun Jaitley hinted that the tax rate on hybrid cars will not be reviewed, telling the industry requests were not in sync with a examine conducted by tax officers.
The council had motionless forty three per cent tax (28 per cent GST plus fifteen per cent cess) on hybrid cars, a rate that industry felt was too high for the fuel efficient vehicles.
Jaitley said, “We have done a detailed investigate on auto industry request and a paper has been made which will be circulated among members. And, if necessary, it would come up for discussion. The fact that is being introduced (by the industry), according to the paper, is not correct.”
The automakers in their request to the GST Council had asked it to reduce the tax rate on hybrid vehicles to eighteen per cent, arguing that they are much more efficient and eco- friendly but require scale and volume to become economically viable.
Royal Enfield Continental GT
As per the proposed rates under the GST regime, hybrid vehicles have been put in the same category as big petrol and diesel luxury cars attracting twenty eight per cent rate with a cess of fifteen per cent. The tax incidence on hybrid vehicles will go up to forty three per cent from the current effective tax rate of 30.Three per cent. At present, hybrid vehicles attract excise duty of 12.Five per cent, similar to entry-level petite cars such as Tata Nano or Maruti Alto.
Even tho’ hybrid cars are exempt from infrastructure cess, there is a one per cent National Calamity Contingent Duty, two per cent Central Sales Tax and 12.Five per cent VAT, which takes the total incidence to 30.Three per cent.
GST: Automobile prices to switch from July one
GST: Automobile prices to switch from July 1. Here’s how it will affect you
With just a few days before the Central Government rolls out the Goods and Service Tax (GST), we take a look at how the fresh tax regime will influence the automobile industry and what it means for the consumers. Will the fresh tax regime turn out to be on the customers side or will it affect the industry for the worst? We find out.
We had earlier reported, under GST, cars will attract the top rate of twenty eight per cent and a cess in the range of one to fifteen per cent on top of it. According to the rate structure finalised by the GST Council, all cars, buses, trucks and motorcycles including moped will attract a peak GST of twenty eight per cent.
While puny petrol cars with engine less than 1,200 cc will attract one per cent cess, that with a diesel engine of less than 1,500 cc will attract three per cent cess. Large cars with engine greater than 1,500 cc and SUVs with length more than four metres and engine greater than 1,500 cc will attract a cess of fifteen per cent.
2017 Maruti Suzuki Dzire
Industry analysts said the companies have been compelled to come up with the discounts as potential customers have held back on purchases expecting prices to come down after the implementation of GST.
Taxes on motorcycles are expected to reduce in most states with the implementation of the Goods and Services Tax (GST) from July one 2017, albeit benefits vary from state to state.
Under GST, most of the two-wheelers will attract a tax rate of twenty eight per cent, lower than total tax incidence of around thirty per cent at present. Motorcycles with engine capacity of over three hundred fifty cc, however, will attract an extra cess of three per cent.
ALSO READ: Arun Jaitley hints at no switch in GST rate on hybrid cars
Discounts on various models:
Country’s largest car-maker, Maruti Suzuki has upped its earlier discounts by up to Rs Ten,000. we had earlier reported that Maruti Suzuki is suggesting exchange bonus of up to Rs 25,000 and discounts up to Rs 15,000 on various models.
Hyundai India launched the two thousand seventeen Xcent compact sedan along with the fresh generation Grand i10, while the Tucson SUV was launched last year. For the month of May, Hyundai was suggesting exchange offers and discounts worth Rs 30,000. For the month of June, Hyundai has unofficially enhanced the discount on Grand i10 and Eon by almost dual.
Ford India is suggesting discounts of up to Rs 30,000 on its compact SUV EcoSport, sedan Aspire and hatchback Figo.
On the more premium front, Mercedes Benz announced slashing of prices of its vehicles produced in India by up to Rs seven lakh to pass on benefits of fresh tax rate under GST due in July.
2017 Hyundai Xcent
Audi slashed prices of its models in India by up to Rs ten lakh till June 30. The company sells a range of cars, ranging from A3 sedan to A8 premium sedan presently priced inbetween Rs 30.Five lakh and Rs 1.15 crore.
Isuzu Motors India is suggesting discounts on the freshly launched MU-X and V-Cross of up to Rs 1.Five lakh on ex showroom prices. While the fresh MU-X now comes with a diminished price tag of Rs 1.Five lakh, the V-Cross gets a discount of Rs 60,000.
Tata Motors-owned Jaguar Land Rover (JLR) has diminished prices of select models by up to Rs Ten.9 lakh from instant effect to pass on benefits of fresh tax rates under GST expected to be flipped out in July.
In the two-wheeler space, niche bike maker Royal Enfield is pre-emptively extending the GST benefits to its customers while Bajaj Auto has also announced reduction in prices of its motorcycles by up to Rs Four,500 to pass on the expected benefit of GST to customers.
2015 Ford Aspire
What do the auto-makers have to say:
Rahil Ansari, Head, Audi India said, “As opposed to the market trend, this is not a measure to clear old stock; we are extending the benefits on our fresh cars as well.”
Roland Folger, MD and CEO, Mercedes-Benz India said, “Events like the diesel car ban in Delhi-NCR and GST now are bringing factor of uncertainty into our overall planning and we attempted to deal with it the best way possible. By September we have petrol versions for all our models.”
A Honda spokesperson said, “We are providing price protection to the customers for cars retailed from June ten to June thirty which means that customers will buy the car at pre-GST price now. Post GST implementation whatever the difference in ex-showroom price it will be returned back to the customer by the dealer.”
TVS Motor Company President and CEO K N Radhakrishnan said the GST would bring a lot of ease in doing business.
2017 Audi A4
Finance Minister Arun Jaitley hinted that the tax rate on hybrid cars will not be reviewed, telling the industry requests were not in sync with a probe conducted by tax officers.
The council had immobile forty three per cent tax (28 per cent GST plus fifteen per cent cess) on hybrid cars, a rate that industry felt was too high for the fuel efficient vehicles.
Jaitley said, “We have done a detailed investigate on auto industry request and a paper has been made which will be circulated among members. And, if necessary, it would come up for discussion. The fact that is being introduced (by the industry), according to the paper, is not correct.”
The automakers in their request to the GST Council had asked it to reduce the tax rate on hybrid vehicles to eighteen per cent, arguing that they are much more efficient and eco- friendly but require scale and volume to become economically viable.
Royal Enfield Continental GT
As per the proposed rates under the GST regime, hybrid vehicles have been put in the same category as big petrol and diesel luxury cars attracting twenty eight per cent rate with a cess of fifteen per cent. The tax incidence on hybrid vehicles will go up to forty three per cent from the current effective tax rate of 30.Three per cent. At present, hybrid vehicles attract excise duty of 12.Five per cent, similar to entry-level puny cars such as Tata Nano or Maruti Alto.
Even however hybrid cars are exempt from infrastructure cess, there is a one per cent National Calamity Contingent Duty, two per cent Central Sales Tax and 12.Five per cent VAT, which takes the total incidence to 30.Trio per cent.
