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Old 16th June 2017, 20:18   #346
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Default Re: GST effect on car prices?

May be this question was asked and I missed it in the thread, apologies in that case. But could someone please clarify if the GST will bring the end of the <4m and >4m concept? I really don't want to see pseudo sedans and psuedo SUV's

Thanks
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Old 19th June 2017, 10:51   #347
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Originally Posted by Revy View Post
What about people who booked before June 10th and will be getting delivery after 1 July ? I am one such person...
You can ask your dealer to confirm this They will be the best persons to contact for a definite answer.
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Old 19th June 2017, 16:51   #348
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Originally Posted by Nikhs View Post
Here is the difference between Current Taxation(considering VAT of 14.5%) and GST.

Note: The Numbers shown here are just my analysis(as per my understanding of current tax system). The final figures may or may not reflect the same.
Pardon my ignorance, but does this mean there is no more restriction on the size of the engine, but just the length of the car? In that case, can we expect better engines on smaller cars in future? Or does that still remain a dream?

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I am of the view here that yes Hybrid norms were exploited by Maruti, and M & M and others but does that mean that just because one apple is rotten we view the whole basket as rotten ?
Sorry to say but the total size of these two apples constitutes around 60% of the total sales in the country. So yes, that does kind of make the entire basket appear rotten.

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Originally Posted by M00M View Post

Auto sector has seen little reforms or help with legislation from the government side in atleast the last 10 years.
I agree with all that you have to say, but the last sentence is the reason why they are still able to get away with a lot of things that otherwise they would not have been able to.
Like say the safety ratings or the emission norms. The fact is, the auto manufacturers have milked this outdated policies to their benefit for a long long time. And the changes are happening very quickly and they dislike it, because that will impact their bottom line.

Last edited by vinit.merchant : 19th June 2017 at 17:00.
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Old 19th June 2017, 16:56   #349
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Default Re: GST effect on car prices?

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Originally Posted by vinit.merchant View Post
Sorry to say but the total size of these two apples constitutes around 60% of the total sales in the country. So yes, that does kind of make the entire basket appear rotten.
All i have been trying to say is that a learned finance minister should have tried to make a distinction between a real technology and a false masquerade of the technology and created different segments for both and clearly laid down the law.

we still use the UPA drafted definition of a small car which is nothing but out of sync with reality.

Auto sector has seen little reforms or help with legislation from the government side in atleast the last 10 years.There is nothing but a constant flip flop in rules and regulations as far as the auto sector is concerned.
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Old 19th June 2017, 22:57   #350
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Default Re: GST effect on car prices?

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Originally Posted by jna4cob View Post
Hello fellow BHPians,

I need your help on making a decision.
So my question is, are the prices of Skoda Rapid 1.5 TDI MT AMBITION variant expected to decrease post GST? Should I wait for the purchase and make an invoice in July? Is the risk worth taking as this offer is till June 30th.
The Skoda dealer in Hyderabad is offering 80k cash discount+20k exchange bonus on TDI AMBITION variant. Post GST the prices may come down up to 50k in some states. Hope this helps.

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Originally Posted by Nitthari View Post
May be this question was asked and I missed it in the thread, apologies in that case. But could someone please clarify if the GST will bring the end of the <4m and >4m concept? I really don't want to see pseudo sedans and psuedo SUV's

Thanks
Still, There will be the concept of < 4m and >4m.

Quote:
Originally Posted by vinit.merchant View Post
Pardon my ignorance, but does this mean there is no more restriction on the size of the engine, but just the length of the car? In that case, can we expect better engines on smaller cars in future? Or does that still remain a dream?
.
There will be restrictions on capacity of engines (< 4m & < 1200cc for petrol or <1500 cc for diesel attracts 28% and rest attracts 28% GST + 13% additional cess). But the government said the additional cess will lapse after 5 years. So hopefully 5 years from now, we will have single tax structure across all segments.
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Old 20th June 2017, 10:57   #351
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Default Re: GST effect on car prices?

Looking at this comparison chat , overall GST is going to be a burden on us more than benefit us.
https://gst.caknowledge.in/gst-rates-comparison-chart/

Petrol/Diesel which has one of the highest form of variable taxation is not included in GST ??

As per this link the following goods are going to cost more.
Telcom, paints, putty, tiles, leather goods, cell phones (3x increase), Ac, Fridges, Washing machines, TV's, watches, furniture, protiens, preserved vegetables,
Butter/Ghee (2x increase) , cheese, serials, dry fruits, jams, books, razors, types, cars, water heaters, Renewable energy devices,

Last edited by Fillmore : 20th June 2017 at 10:59.
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Old 20th June 2017, 19:46   #352
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Default Re: GST effect on car prices?

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Originally Posted by Fillmore View Post
Looking at this comparison chat , overall GST is going to be a burden on us more than benefit us.
https://gst.caknowledge.in/gst-rates-comparison-chart/

Petrol/Diesel which has one of the highest form of variable taxation is not included in GST ??

As per this link the following goods are going to cost more.
Telcom, paints, putty, tiles, leather goods, cell phones (3x increase), Ac, Fridges, Washing machines, TV's, watches, furniture, protiens, preserved vegetables,
Butter/Ghee (2x increase) , cheese, serials, dry fruits, jams, books, razors, types, cars, water heaters, Renewable energy devices,
I never believed the intention for GST was to reduce tax burden on the public. Other than a few gimmick items for popularity, pretty much everything is going to cost more. The revenue neutral goal is for the state taxes I think, the central government definitely wants to increase revenue.
Disclaimer - This is not true for just the current govt, it holds true for any govt. I do not support any particular political party.
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Old 20th June 2017, 19:57   #353
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Default Re: GST effect on car prices?

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Originally Posted by Fillmore View Post
protiens, Butter/Ghee (2x increase), cheese, cereals, dry fruits, books, washing machine, cars, Renewable energy devices
So, a simpleton's summary is that the powers that be don't want me to eat healthy food, gain knowledge, stay clean, work towards a sustainable future or do anything pleasurable.

Great population control measure. Just eat rice/wheat, stay alive and vote.

Last edited by ashwin489 : 20th June 2017 at 19:58.
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Old 21st June 2017, 12:34   #354
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Default Re: GST effect on car prices?

Quote:
Originally Posted by Revy View Post
What about people who booked before June 10th and will be getting delivery after 1 July ? I am one such person...
I believe the date of vehicle invoice is what matters for the billing (booking is just a token of your interest in purchasing the vehicle) and so, GST benefits if any should be applicable if the purchase/delivery date is after July 1
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Old 21st June 2017, 15:12   #355
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Default Re: GST effect on car prices?

Hi Guys,

Any guesses on the price change of Honda Brio in Haryana & Delhi - Post GST?
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Old 22nd June 2017, 16:49   #356
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Bad news seem to be the flavor of the season.

Was reading the article on Economic times

From what i understand it looks like the lease rentals are going to be higher and tax benefits enjoyed till now won't be there any more. Is that true ? Time to sell of the car or wait and watch till GST council comes out with a solution ?
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Old 22nd June 2017, 19:41   #357
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Default Re: GST effect on car prices?

Hello All

I have a question on the impact of GST on existing company car leases. The monthly payment could increase between 15% to 32% depending on the size of the engine which will negate any tax savings an employee might get.

Since Excise and other taxes are already paid for these cars, wouldn't this amount to double taxation . Is there a credit being planned for the taxes already paid in lieu of the higher taxes due to GST?. I plan to terminate my lease in a few days unless there is some clarity on this topic. Would be great to hear what others who are in company car leases are planning on doing.

Tks
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Old 22nd June 2017, 20:55   #358
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Default Re: GST effect on car prices?

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Originally Posted by HentaiDesi View Post
Hello All
Since Excise and other taxes are already paid for these cars, wouldn't this amount to double taxation . Is there a credit being planned for the taxes already paid in lieu of the higher taxes due to GST?. I plan to terminate my lease in a few days unless there is some clarity on this topic. Would be great to hear what others who are in company car leases are planning on doing.
Tks
its a case of double taxation. Checking with employer and the lease company on the eventual impact. I heard existing lease rental will go up by 43% Along with the car lease being costlier, i dont think many of us can afford to pay that extra $$. Transfer/selling the car is also going to be expensive.
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Old 23rd June 2017, 11:08   #359
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Default Re: GST effect on car prices?

Quote:
Originally Posted by HentaiDesi View Post
Hello All

I have a question on the impact of GST on existing company car leases. The monthly payment could increase between 15% to 32% depending on the size of the engine which will negate any tax savings an employee might get.

Since Excise and other taxes are already paid for these cars, wouldn't this amount to double taxation . Is there a credit being planned for the taxes already paid in lieu of the higher taxes due to GST?. I plan to terminate my lease in a few days unless there is some clarity on this topic. Would be great to hear what others who are in company car leases are planning on doing.

Tks
Monthly payment is surely going to go up post July and that's the reason why I have stopped going for it at the last moment. And for the same reason, June is completely a dry month for car leases, most of the people prefer to wait till July.

For surrendering cars which are already leased, there will be a big penalty for premature closure. It has to be seen from that angle as well.
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Old 23rd June 2017, 21:18   #360
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Default Re: GST effect on car prices?

I was planning to buy a car on lease from my employer. I booked Elite i20 Asta (O) (Diesel). But, in the
last moment I had to cancel the booking. My leasing team staff, themselves suggested me to wait for a month till GST is rolled out.

But there was one more reason for me to cancel the booking. The dealer started offering additional 15K
discount on the name of passing GST benefit before its rolled out. Now I don't understand the following.

1. If you go by popular opinion, small diesel cars will get costlier post GST. Then why dealer is offering discount on the vehicle, rather they should hold the stock and sell at a higher price next month.

2. I think post GST, at least in Karnataka, prices would/should fall even for small diesel cars. Why ! becuase we
pay VAT at the highest rate in India. And post GST price correction may be worth more than Rs 15K, hence the dealer may be trying to get away with the stocks by offering some discount.

Is point 2 a good assumption, particularly in the context of Karnataka, Or I am just getting too optimistic (and slightly greedy too) :-)
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