Team-BHP > The Indian Car Scene
Register New Topics New Posts Top Thanked Team-BHP FAQ


Reply
  Search this Thread
725,208 views
Old 8th August 2017, 09:38   #646
BHPian
 
Join Date: Nov 2015
Location: Chennai
Posts: 190
Thanked: 407 Times
Re: GST effect on car prices?

Quote:
Originally Posted by volkman10 View Post
All cars more than four metres in length will become more expensive.
Though it is not clear at present, I presume that the higher cess of 25% would be applicable only for cars > 4 meter in length and having engine capacity>1500cc. Therefore, cars/SUVs > 4 meter length but engine capacity < 1500cc may not be affected by the increase. However, more clarity may emerge in the comming days.
DImPo is offline  
Old 8th August 2017, 09:43   #647
Distinguished - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 24,474
Thanked: 72,838 Times
Re: GST effect on car prices?

Quote:
Originally Posted by DImPo View Post
Though it is not clear at present, I presume that the higher cess of 25% would be applicable only for cars > 4 meter in length and having engine capacity>1500cc. Therefore, cars/SUVs > 4 meter length but engine capacity < 1500cc may not be affected by the increase. However, more clarity may emerge in the comming days.
With Maruti Suzuki's chief replying to it( below quote) I guess higher cess seems applicable to cars fulfilling either one of the criteria. S Cross, Ciaz and Ertiga in their portfolio will be impacted.

Plans for global hatchbacks( like Polo,etc ) greater than 4.0m in length is likely to be shelved as India specific products don't make business sense in the current scenario.

Quote:
While Maruti Suzuki chairman RC Bhargava said the company would have to work out the impact of revised rates to determine vehicle prices

Last edited by volkman10 : 8th August 2017 at 09:50.
volkman10 is offline  
Old 8th August 2017, 09:45   #648
Senior - BHPian
 
Arjun Reddy's Avatar
 
Join Date: Jun 2013
Location: Bangalore
Posts: 1,530
Thanked: 2,894 Times
GST effect on car prices?

Quote:
Originally Posted by DImPo View Post
Though it is not clear at present, I presume that the higher cess of 25% would be applicable only for cars > 4 meter in length and having engine capacity>1500cc. Therefore, cars/SUVs > 4 meter length but engine capacity < 1500cc may not be affected by the increase. However, more clarity may emerge in the comming days.

To get into the lower tax bracket the manufacturer must be complaint with both the conditions. Should be less than 4 Mtrs and lower than 1500 cc engine.

Classic case is Ciaz, it will attract higher tax because it's over 4 Mtrs in length though it has a 1300 cc engine. However the Brezza gets away as it is under the 4 Mtrs length, has a 1300 cc engine and has ground clearance of less than 170mm. Even if the Brezza's ground clearance had exceeded 170mm it would be classified as an SUV.

Last edited by Arjun Reddy : 8th August 2017 at 09:51.
Arjun Reddy is offline  
Old 8th August 2017, 10:31   #649
BHPian
 
Join Date: May 2008
Location: KA-09
Posts: 760
Thanked: 1,379 Times
Re: GST effect on car prices?

This is what BMW had to say when GST was announced. Wonder what they will say now
Attached Thumbnails
GST effect on car prices?-bmw-ad.jpg  

octane_100 is offline   (4) Thanks
Old 8th August 2017, 10:47   #650
BHPian
 
Join Date: Mar 2009
Location: chennai
Posts: 226
Thanked: 206 Times

New verna will be impacted as it is a 1.6L engine and bigger than 4M. Ciaz already in higher tax slab due to SVHS. I wonder what more they can increase for ciaz.
drashkum is offline  
Old 8th August 2017, 11:09   #651
BHPian
 
ottocycle's Avatar
 
Join Date: Mar 2010
Location: Hyderabad
Posts: 528
Thanked: 700 Times
Re: GST effect on car prices?

Will Nexon be also affected because of this. Was looking for the Nexon. Looks like Government is keen on bringing the surcharge increase before Nexon is launched
ottocycle is online now  
Old 8th August 2017, 11:13   #652
Senior - BHPian
 
sgiitk's Avatar
 
Join Date: Dec 2007
Location: Gurugram
Posts: 7,971
Thanked: 4,799 Times
Re: GST effect on car prices?

The Govt is still muddled. The recent increase in GST on 'so called' luxury cars is impacting all over. I do not see how the Honda City is a 'luxury car'.

While personally I am all for attacking the SUVs and the like, for Gods Sake use your brains (if you have any left). Or is it the the Govt wants to revert to the M800 days.

Last edited by moralfibre : 9th August 2017 at 09:08. Reason: Typo
sgiitk is offline   (1) Thanks
Old 8th August 2017, 11:28   #653
BHPian
 
Join Date: Apr 2013
Location: New Delhi
Posts: 200
Thanked: 309 Times
Re: GST effect on car prices?

Quote:
Originally Posted by ottocycle View Post
Will Nexon be also affected because of this. Was looking for the Nexon. Looks like Government is keen on bringing the surcharge increase before Nexon is launched
Right now in the famous words of Ford CEO " EVERYTHING IS ON THE TABLE".

The finance ministry has notified it's intent to raise the ceiling of cess from 15% to 25%.

By what quantum shall the cess be raised on various segment of cars will be decided in the GST council meeting in September.

Theoretically the cess can be increased on all the cars to 25% but practically ( though it's difficult define what is "practical" in face of such volatile and adhoc decisions by authorities ) the additional cess will be limited to SUVs and luxury cars. Now what is the definition of a luxury car is anyone's guess.

Our politicians do set a brilliant example by arriving on their powerful chariots cough " German SUVs" only to tell ordinary middle class that ciaz is a luxury car.

Last edited by fuelinmyveins : 8th August 2017 at 11:30.
fuelinmyveins is offline   (5) Thanks
Old 8th August 2017, 11:28   #654
BHPian
 
vkaul1's Avatar
 
Join Date: Oct 2011
Location: Pune
Posts: 240
Thanked: 78 Times
Re: GST effect on car prices?

Well the added impact to people in MH is the additional 2% RTO charges levied by the state govt due to claimed loss of revenues. Will things like those too be rolled back?? Unlikely.

Only the common "tax paying" citizen has to contend with living with small, poorly engineered vehicles while the "bulk" of the people buying / affording the luxury cars will hardly blink for additional 10%.

Yes, India with the population density & lower land mass is less conducive to having a lot of cars on the roads, but then where are the comfortable & reliable mass transit systems?
vkaul1 is offline   (4) Thanks
Old 8th August 2017, 11:28   #655
BHPian
 
Join Date: Mar 2009
Location: chennai
Posts: 226
Thanked: 206 Times

Quote:
Originally Posted by ottocycle View Post
Will Nexon be also affected because of this. Was looking for the Nexon. Looks like Government is keen on bringing the surcharge increase before Nexon is launched
Yes, mostly because it has a ground clearence above 170mm. The government is yet to clarify on that. But mostly yes. Only A and B1 segments are saved from the hike i think

Last edited by drashkum : 8th August 2017 at 11:32.
drashkum is offline  
Old 8th August 2017, 11:35   #656
BHPian
 
Join Date: Mar 2011
Location: Blr/Hyd
Posts: 385
Thanked: 537 Times
Re: GST effect on car prices?

Unless the pre-GST car lease issue is fixed, I think this means that the lease amount will go up even more for those leased cars before GST which is above 4m!

Tweet to the GST council handles @gst_council, @askGST_GoI, @arunjaitley and register your protests.

Last edited by sanchari : 8th August 2017 at 11:36.
sanchari is online now  
Old 8th August 2017, 11:47   #657
BHPian
 
Cooltronics's Avatar
 
Join Date: Oct 2009
Location: Bangalore
Posts: 360
Thanked: 566 Times
Re: GST effect on car prices?

Quote:
Originally Posted by fuelinmyveins View Post
As far as I can remember, there was a slight correction in the prices of the mid size sedans but surely not to the tune of 10%, though I may be wrong on this.
Prices corrected by upto 8% and that is because the decrease happened on the Base Price - Selling Price before taxes.
Upward correction will also happen on Base Price and hence should not be actually 10% of Ex Show Room Price.
Irrespective - this is a retrograde decision and many people like me AKKA Middle Class who supported the reformist policy of the government inspite of seeing every commodity and service getting costlier has to think now whether GST migration is really streamlining since nothing is cheaper than previous VAT avtar
Cooltronics is offline   (1) Thanks
Old 8th August 2017, 11:55   #658
BHPian
 
Join Date: Dec 2016
Location: BANGALORE
Posts: 298
Thanked: 1,306 Times
Re: GST effect on car prices?

Quote:
Originally Posted by AbhisheKulkarni View Post
Let me ask a very simple and basic question:
=====
Not sure what's the problem with this move.
Dear Mr.Kulkarni,

This is what the communists all over the world tried to do and failed on the most accounts. A capitalist society that rewards you for your effort and risk taking ability, coupled with the government being motherly towards weaker section-read a welfare government is the need of the hour.

In first place GST is supposed to even out and combine multiple taxes in to a single tax. It should mean that some of the materials should have costed less(for common man) and luxury items should have costed same. I don't think same thing is happening.

Nothing wrong in taxing the rich - Read this, the GST+CESS on a 30lakh car is 15lakhs, Plus the road tax is 5 lakhs making it 50lakhs OTR. And to pay this 50lakhs we should have earned 71lakhs(add income tax to that 50lakhs).

Do you think this is equitable and reasonable tax system? And after paying all this you can't use the car anywhere in this so called One Nation with One TAX.
aadya is offline   (19) Thanks
Old 8th August 2017, 12:21   #659
BHPian
 
Join Date: Dec 2016
Location: BANGALORE
Posts: 298
Thanked: 1,306 Times
Re: GST effect on car prices?

It suddenly dawns on me whether the government classifies the SUVs by keeping the potholes deeper and Speedhumps taller so that the manufacturers cannot bend the rule by keeping 169mm GC.
aadya is offline   (1) Thanks
Old 8th August 2017, 12:30   #660
BHPian
 
Join Date: Mar 2009
Location: chennai
Posts: 226
Thanked: 206 Times

Quote:
Originally Posted by aadya View Post
It suddenly dawns on me whether the government classifies the SUVs by keeping the potholes deeper and Speedhumps taller so that the manufacturers cannot bend the rule by keeping 169mm GC.
If that happens what will happen to non SUV vehicles ( sedans and hatches) which have GC below 170mm?

If they make the speed bumps taller and roads bumpier anymore we can refrain paying road tax 😂

GST effect on car prices?-1502175538599.jpg
drashkum is offline   (1) Thanks
Reply

Most Viewed


Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks