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Old 28th June 2017, 13:46   #391
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Default Re: GST effect on car prices?

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Originally Posted by prabhuferrari View Post
Am I missing something here? Ciaz is like Vento, City, Verna right? How will it get expensive?

It is Ciaz and Ertiga (Diesel) - SHVS variant which falls in the Hybrid range

The petrol variants ( non SHVS )will benefit in reduction of prices.

Last edited by volkman10 : 28th June 2017 at 13:49.
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Old 28th June 2017, 16:48   #392
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Default Re: GST effect on car prices?

Just wondering if GST will have a significant impact on car price depending on the location.

For eg. Ex-showroom price of Creta SX+ Automatic in Delhi is 13 lacs while in Mumbai it is 13.75 lacs. With the concept of GST being one country one tax (because tax is applied at source) I believe ex-showroom Delhi and Mumbai price will now be the same for all cars. Octroi will no longer be applied for cars in Mumbai because all such tax will be subsumed by GST

If this is true then in Mumbai, Creta SX+ Automatic should be available for 13 lacs which is a drop of 75,000.

Also, with the revised tax slab in GST, there will be a 12% drop in tax applicable on SUVs including Creta. So 55% tax will come down to a 43%.

Again taking example of Creta SX+ Automatic
Ex-showroom Delhi price (Pre GST)- INR 13 lacs (55% Tax)
Without tax price - INR 8.39 lacs
Ex-showroom Delhi price (Post GST)- INR 12 lacs (43% Tax)

So with GST, we can see a potential drop in price of INR 1 lac for Creta SX+ Automatic in Delhi and about INR 1.75 lacs in Mumbai. All this with the assumption that manufacturers will pass on the entire benefit to consumers.
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Old 28th June 2017, 18:48   #393
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Here is some clarification on the GST that would be applied on the Sale of Pre-Owned Cars: URL

Quote:
Sale of used cars: GST only on margins made by dealer, says Adhia
The sale of second-hand cars on the vendor platforms will attract goods and services tax (GST) only on the margins made by the dealer, revenue secretary Hasmukh Adhia clarified on Tuesday, removing apprehensions that the tax will apply on the entire sale value. The revenue secretary also said sale of used cars between individuals or by individual to a firm won’t be treated as taxable transaction under GST. The tax will apply only on cars sold by registered vendors.

Last edited by vsrivatsa : 28th June 2017 at 18:52.
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Old 28th June 2017, 19:26   #394
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Default Re: GST effect on car prices?

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Here is some clarification on the GST that would be applied on the Sale of Pre-Owned Cars: URL
Would this mean that if a car is on lease/loan and i sell to individual, there won't be any tax/GST ?

No one giving clarity and need to figure whats the best way - to continue the lease or foreclose. As per current available news, GST will be applicable on rental + transfer/foreclosure.

Thanks,
Sunish
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Old 28th June 2017, 19:35   #395
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Default Re: GST effect on car prices?

I wonder why Auto companies are not announcing post GST prices officially yet. I would presume all information on tax rates etc. needed should be available by now. I can understand that they may not want to cannibalize June sales, but they can mitigate this by offering an equivalent discount. The first ones to the table with this information will have some advantage in bettering their July numbers, since many buyers have been postponing their decisions for months and want to move quickly once post GST prices are known. Auto companies can garner more bookings and ensure a healthy forward sales pipeline.

Last edited by 84.monsoon : 28th June 2017 at 19:36.
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Old 28th June 2017, 20:24   #396
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Default Re: GST effect on car prices?

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Originally Posted by sunishsamuel View Post
Would this mean that if a car is on lease/loan and i sell to individual, there won't be any tax/GST ?

No one giving clarity and need to figure whats the best way - to continue the lease or foreclose. As per current available news, GST will be applicable on rental + transfer/foreclosure.

Thanks,
Sunish
I think that article is a clarification only for Pre-Owned Car Dealers. For an Individual, if you completely own the car, then selling that fully owned car will not attract any GST.

It does not offer clarification regarding a car on lease and as it stands today, the foreclosure would apply at GST specified rates post 01-Jul-2017.
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Old 28th June 2017, 22:10   #397
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Xuv 5OO may become cheaper than Scorpio if we calculate the reduction vs increase in respective prices. Wonder what's M&M thinking right now?
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Old 29th June 2017, 09:26   #398
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Default Re: GST effect on car prices?

I read an interesting article on ACI mentioned below.
It looks like manufacturers may not be passing the entire benefit to the customer which is a shame.

http://www.autocarindia.com/auto-new...on-405230.aspx

Last edited by scarlet.fever : 29th June 2017 at 09:31.
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Old 29th June 2017, 09:50   #399
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Default Re: GST effect on car prices?

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Originally Posted by scarlet.fever View Post
I read an interesting article on ACI mentioned below.
It looks like manufacturers may not be passing the entire benefit to the customer which is a shame.
Today the manufacturers are still no sure of the impact of the GST. Also, the 'high' GST on Hybrids % Electrics appears to be a bad one. I wonder whether it was prompted by the so called hybrids, which were definitely not that, led to this decision. Start-Stop is not a Hybrid.
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Old 29th June 2017, 10:58   #400
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Default Re: GST effect on car prices?

Quote:
Originally Posted by scarlet.fever View Post
I read an interesting article on ACI mentioned below.
It looks like manufacturers may not be passing the entire benefit to the customer which is a shame.
Seems like there is an anti-profiteering clause in the GST bill, primarily to control inflation, which will make sure that all the benefits are passed on to the customer.

Regarding GST for used cars, I think its applicable only on the profit/commission made by the agent and would not be affecting seller or buyer as such.
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Old 29th June 2017, 11:13   #401
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Default Re: GST effect on car prices?

When there are all indications about decrease in prices of luxury cars and SUVs, this article indicate increase in price:
http://www.moneycontrol.com/news/bus...r-2314419.html
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Old 29th June 2017, 12:40   #402
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Default Re: GST effect on car prices?

The following article at autocarindia portal seems interesting and believable:

http://www.autocarindia.com/auto-new...on-405230.aspx

According to this price of all the cars, including small cars, are destined to come down, except the so-called Hybrid cars!

As anticipated earlier, the biggest beneficiary would be the (S)UV segment (reduction in range of 12%). Good days are ahead for automobile industries!
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Old 29th June 2017, 15:46   #403
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Default Re: GST effect on car prices?

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Originally Posted by sups View Post
When there are all indications about decrease in prices of luxury cars and SUVs, this article indicate increase in price:
http://www.moneycontrol.com/news/bus...r-2314419.html
This article looks very amateur. Don't know how accessories will add up to the cost of SUVs !!!
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Old 29th June 2017, 17:38   #404
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Default Re: GST effect on car prices?

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Originally Posted by 84.monsoon View Post
I wonder why Auto companies are not announcing post GST prices officially yet. I would presume all information on tax rates etc. needed should be available by now.
I feel they are overcautious (The govt may postpone the implementation of GST at last minute, or make some other last minute changes). The Auto companies my announce the prices in the first week of July, after the govt implements the GST from 1st July.

I also feel that the Auto companies cannot sell the products from 1st July, until they officially announce the latest prices (I predict this only in cases where there is a decrease in price).
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Old 29th June 2017, 20:08   #405
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Default Re: GST effect on car prices?

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Originally Posted by Prafful_Rathod View Post
This article looks very amateur. Don't know how accessories will add up to the cost of SUVs !!!
Right. This article is the most confusing one. Wonder what the author was smoking.

Most other articles say 12% on SUV, but some clearly indicate the manufacturers will not be able to pass on 12% to customers due to other overheads they will have to bear from GST. So it appears that the net reduction will be around 7% for SUV category.

Last edited by moralfibre : 1st July 2017 at 06:28. Reason: Typo
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