GST Cess might increase to 25% on cars!

SachinOnTop

Full Use Else Lose
Due to this recent introduction, Jeep Compass prices have increased significantly.
Earlier its starting price was 14,95,000 and now it starts from 15,16,000. The top variant got an increase of 72,000.

Tata Hexa witness a sharp increase of 76,000 to 95,000 rupees across variants.
Safari Storme also experiencing a hike of upto 86,000 bucks!
 

Yogesh Sarkar

Administrator
What was the tax before GST? It is hard to understand what was the actual increase. For example, if tax earlier was 10% and GST is 28% then increase is 18%.
Mid-size, luxury and SUV car prices are back to what they were, before the introduction of GST.
 

SachinOnTop

Full Use Else Lose
GST was actually supposed to ease off the tax criteria, but what we got in the end is another messed up bundle of rules.
It's still pretty complex for many and people have different (fuming!) opinions about it. The demarcation between regular and luxury cars is a joke now.

Also the forthcoming disastrous push by government to phase out diesel and petrol fed cars by 2030 is already creating a furore in automobile sector.
Honda Car India is among the first ones to indicate that they (including other Japanese players) might shift focus outside India due to unclear and unique tax structure. This could be a big dent in India's expectations of having huge investments for newer automobile technologies like hybrid, fuel-cell, etc.
 

deepam

Super User
GST was actually supposed to ease off the tax criteria, but what we got in the end is another messed up bundle of rules.
It's still pretty complex for many and people have different (fuming!) opinions about it. The demarcation between regular and luxury cars is a joke now.

Also the forthcoming disastrous push by government to phase out diesel and petrol fed cars by 2030 is already creating a furore in automobile sector.
Honda Car India is among the first ones to indicate that they (including other Japanese players) might shift focus outside India due to unclear and unique tax structure. This could be a big dent in India's expectations of having huge investments for newer automobile technologies like hybrid, fuel-cell, etc.
++++++++++++++++++
Honda may decide to shift focus for launching products which are not accepted by Indian customers. They are taking GST and early warning by government on Electric as an excuse.
My colleague who has Honda City CVT Petrol is really pissed off with the suspension set-up.
Mobilio built on Brio platform - they had to pull out due to sales volume.
Not learning the lesson, Honda pushed BRV again built on the same Brio platform.

I had lot of expectations from Honda and the way the service set up is - really pissed me off.

Toyota is not cribbing about losing focus; they are happily selling Innova Crysta and Fortuner in good numbers - accepted and embraced by Indians in spite of steep increase in price!
 

deepam

Super User
Excerpt from GST notification for Cars:
Notification No. 5/2017-Compensation Cess (Rate) dated the 11th September, 2017

  • Motor Vehicles of Petrol Engine <1200 cc and 4 m - Cess is 15% [against 1% earlier] - so new GST will be 28+15 = 43%
  • Motor Vehicles of Diesel Engine < 1500 cc and 4 m - Cess is 15% [against 3% earlier]- so new GST will be 28+15=43%
    • [Dzire, Swift, Bolt, Tiago, Alto, Brezaa, Ecosport, Figo, Aspire, Micra, Pulse, Nexon, i20, Xcent, i10 ..etc] all fall under the above category.
  • Motor Vehicles of Engine capacity < 1500 cc - Cess is 17% [against 15% earlier] - so new GST will be 28+17=45%
    • [Scross, Ertiga, Ciaz, Sunny, Scala, Duster, Terrano, Verna [1.4], Creta [1.4], Captur, City, ..] all fall under the above category.
  • Motor Vehicles of Engine Capacity > 1500 cc [not SUV's, ground clearance below 170 mm] - Cess is 20% - so new GST will be 28+20=48%
    • [Verna [1.6], Elantra, Octavia, ...] all fall under the above category.
  • Motor Vehicles of Engine Capacity > 1500 cc [SUV Category, ground clearance above 170 mm] - Cess is 22% - so new GST will be 28+22=50%
    • [Creta [1.6], XUV 5OO, Hexa, Safari, Jeep Compass]

The ground clearance of 170 mm - is laden or unladen; this clarity is not there in the notification. If it is laden, Creta may fall in 48% bracket, as Unladen it's ground clearance is 180 mm. Laden may bring it out in lower category.

If you look at it the difference for small car tax is lesser by 2%; now this should prompt to relaunch Ford Ecosport in true European spec and this can give good competition to Creta / Duster/ Captur / expected Kicks.
 
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