[DriverR]

Originally Posted by Sawyer

I don't know if this is an answered question, the effect on used car sales.

When the dealer sells the car, in the past did he have to pay VAT? Does he have to pay GST today?

GST Effect on Used Cars Deals: Buyers Pay More, Sellers Fetch Less

The Government has clarified this today. If the used car sale is to an individual then there is no GST applicable. In case a dealer is involved then GST is applied (at the same rates as for new cars). Hence the dealers will be offering a lower amount to buy a car and would be selling them at a higher rate.

[knightrider_7]

Mahindra Thar price has been updated on the website. The ex showroom price for crde is now ₹ 8,67,240.

Also checked its competitor Force Gurkha's price. It is now ₹ 9,23,621, including registration, insurance and handling charges, as per the Force website.

[vsun]

Originally Posted by sgiitk

I think, some state trying to play games apart, we now need:

1. Common road tax across India.

2. Smooth / seamless movement of vehicles across states.

Absolutely true. Same treatment(Common tax) has to be applied to Petrol and Diesel across India.

[imp!]

I have been wondering, with entry tax abolished, will it now become easier to purchase a new car out of state and register in ones home state? If so, then this will level the playing field for discounts nationwide.

[Santoshbhat]

Originally Posted by imp!

I have been wondering, with entry tax abolished, will it now become easier to purchase a new car out of state and register in ones home state? If so, then this will level the playing field for discounts nationwide.

It should be easier now. Tax rates across the country is same and there is no extry tax. So there is nothing stopping someone in KA from going to MH, buying a car and getting it invoiced on a KA address and bring it back to KA and pay the road tax and register it.

I am sure dealers, esp the luxury brands, realise that this gives customers a big edge during hard negotiations. Also if you look at it from their point of view, it is a matter of grave concern if you are a dealer in a big metro, paying metro salaries, metro rent and other overheads and you have to now compete with dealers from smaller towns with lower overheads and lower volumes wanting to grab customers with aggressive pricing. Don't know how the manufacturer is going to deal with dealers cribbing about other dealers undercutting their price and stealing their customers. I won't be surprised if manufacturers issue new set of rules to all dealers making some kind of boundary/ jurisdiction etc...

[Sahil]

I am glad GST has given some brands the chance to correct their price tags without admitting they had initially goofed up. Jeep has given a massive cut.

I wish VW had done so with the Tiguan and Lexus too.

[vikash49]

Originally Posted by DriverR

GST Effect on Used Cars Deals: Buyers Pay More, Sellers Fetch Less

Experiencing this first hand

In the first week of June, I had got a quote of 4.10L for my 2011 Honda City from the local Honda Dealer here.

Come July, the same dealer first offered 3.50L and then maxed out at 3.75L for the same car citing GST and increased tax liability as the main reason.

Tried other used car dealers and all are offering in the range of 3.30L - 3.60L and most echo the view that organised used car business will take a huge hit due to GST.

Originally Posted by imp!

I have been wondering, with entry tax abolished, will it now become easier to purchase a new car out of state and register in ones home state? If so, then this will level the playing field for discounts nationwide.

Don't think this will be possible, because as per recent instructions from District Transport Office here, Car Dealers need to register the vehicles on behalf of the owners at the local DTO and can deliver the vehicles only after completion of registration process and fixation of registration plates.

[Ragavsr]

Originally Posted by vikash49

Don't think this will be possible, because as per recent instructions from District Transport Office here, Car Dealers need to register the vehicles on behalf of the owners at the local DTO and can deliver the vehicles only after completion of registration process and fixation of registration plates.

Well, the dealership from the other state can get the vehicle registered in another state through an agent or by sending over an executive.

[imp!]

Originally Posted by Santoshbhat

It should be easier now. Tax rates across the country is same and there is no extry tax. So there is nothing stopping someone in KA from going to MH, buying a car and getting it invoiced on a KA address and bring it back to KA and pay the road tax and register it.

I am sure dealers, esp the luxury brands, realise that this gives customers a big edge during hard negotiations. Also if you look at it from their point of view, it is a matter of grave concern if you are a dealer in a big metro, paying metro salaries, metro rent and other overheads and you have to now compete with dealers from smaller towns with lower overheads and lower volumes wanting to grab customers with aggressive pricing. Don't know how the manufacturer is going to deal with dealers cribbing about other dealers undercutting their price and stealing their customers. I won't be surprised if manufacturers issue new set of rules to all dealers making some kind of boundary/ jurisdiction etc...

I hope that the pricing becomes more competitive. I'm not sure how manufacturers can set defined regions for dealers. If that does happen, it will be very frustrating. Getting discounts on luxury Germans in Bangalore is much tougher than getting them from Bombay/Delhi. Navnit Bombay offers much larger discounts than Navnit Bangalore. I'd like to be able to buy the car from any dealer in the country quite honestly. Hope I'm able to if/when I buy my first BMW/Mercedes. Even if they do lock down regions, a buy ought to be able to do a temp registration at origin, drive it down the home state and then do a permanent registration.

Incidentally didn't you buy a BMW X3 30D from the Bangalore dealer? Wouldn't you have had an easier time getting it at market value from Delhi or Bombay?

Originally Posted by vikash49

Experiencing this first hand

In the first week of June, I had got a quote of 4.10L for my 2011 Honda City from the local Honda Dealer here.

Come July, the same dealer first offered 3.50L and then maxed out at 3.75L for the same car citing GST and increased tax liability as the main reason.

Tried other used car dealers and all are offering in the range of 3.30L - 3.60L and most echo the view that organised used car business will take a huge hit due to GST.



Don't think this will be possible, because as per recent instructions from District Transport Office here, Car Dealers need to register the vehicles on behalf of the owners at the local DTO and can deliver the vehicles only after completion of registration process and fixation of registration plates.

Used cars sold be dealers will come under purvey of GST; this should mean that individual sales will increase. A temporary registration is fairly cheap, that is one way to work around this I suppose.

Originally Posted by Ragavsr

Well, the dealership from the other state can get the vehicle registered in another state through an agent or by sending over an executive.

Hope all this comes together in a way to allow the consumer to benefit!

[volkman10]

Suzuki Swift, Honda Jazz , Honda City Hybrids could be launched in India provided a favorable tax rate comes in post Aug 5th review meet.

Next GST Council meet may review rates on hybrid cars

Whatever has been raised and is justified will be taken up. When you roll out something as mammoth as the GST, I would say you will always find problems probably coming in till six months or a year, you will find issues that come up

link

[riteshritesh]

I was all happy thinking that I could claim the Input Tax Credit on purchase of a new car under company name for all future purchases, until someone burst my bubble. I was informed that only Transport company/Driving school/Taxi operator can claim ITC as it is for their core business for which the asset is being purchased.

[Stratosphere]

Originally Posted by riteshritesh

I was all happy thinking that I could claim the Input Tax Credit on purchase of a new car under company name for all future purchases, until someone burst my bubble. I was informed that only Transport company/Driving school/Taxi operator can claim ITC as it is for their core business for which the asset is being purchased.

If you can, could you kindly tell if Hotels or Resorts owners can claim Input Tax Credit for purchase of a new car, luxury or non-luxury?
Even I was under the impression that companies could claim Input on all purchases.

Thank you.

[mjumrani]

Volvo pricing in Bangalore post GST.

[yatin]

Originally Posted by volkman10

Suzuki Swift, Honda Jazz , Honda City Hybrids could be launched in India provided a favorable tax rate comes in post Aug 5th review meet.

The link does not mention this at all. Such speculation seems to be as valid or as invalid as it was a few years ago.

Mods: Would you please consider editing that out of that post?

[volkman10]

Originally Posted by yatin

The link does not mention this at all. Such speculation seems to be as valid or as invalid as it was a few years ago.

A few years ago?
Suzuki SWIFT Hybrid has been just launched in Japan, similarly Honda's Jazz and City is launched in July 2017.