Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 22nd July 2017, 15:15   #601
BHPian
 
Join Date: Sep 2014
Location: noida
Posts: 160
Thanked: 119 Times
Default

Now you can buy your dream Jaguar Land Rover vehicle at more affordable, Post GST, prices.
1. Jaguar XE @ 34.64 Lakh (Ex Showroom)
Price reduced by Rs. 2.61 Lakh
2. Jaguar XF @ 44.89 Lakh (Ex Showroom)
Price reduced by Rs. 4.61 Lakh
3. Land Rover Discovery Sport @ 46.06 Lakh (Ex Showroom)
Price reduced by Rs. 3.76 Lakh
4. Range Rover Evoque @ Rs. 42.86 Lakh (Ex Showroom)
Price reduced by Rs. 3.49 Lakh

Received this message, IMHO the XE and evoque are real VFM offerings at this price!!
dhruvritzed is online now   Reply With Quote
Old 22nd July 2017, 22:48   #602
BHPian
 
Join Date: Apr 2007
Location: Bangalore
Posts: 117
Thanked: 79 Times
Default Re: GST effect on car prices?

Quote:
Originally Posted by volkman10 View Post
A few years ago?
Suzuki SWIFT Hybrid has been just launched in Japan, similarly Honda's Jazz and City is launched in July 2017.
Well, there is no mention of those cars in the link, is there ?

Beyond that, I was talking about the speculation/rumour/leak ... in case there is enough business sense for hybrids (and entry hybrids at that) now but not a few years ago:
- what has that got to do with GST (becoming the same rate as before)
- what is making it possible now anyway (is it going to be performance orientation to justify a maybe ₹15-lakh hatchback ala Polo GT)
yatin is offline   Reply With Quote
Old 25th July 2017, 00:14   #603
BHPian
 
mjumrani's Avatar
 
Join Date: Dec 2011
Location: Bangalore
Posts: 391
Thanked: 284 Times
Default Re: GST effect on car prices?

During negotiations for XC90's i stumbled across something weird. T8 Excellence is 10L cheaper across whole country other than Bangalore, D5 Inscription is 3L cheaper across whole country again. These prices are post GST. I am unable to understand the logic behind this. Freight charges can't be so high, landing port of Volvo cars is Chennai.

Audi , BMW , Merc have same pricing across all cities for their CBU's.

Below are figures ( ex showroom )

XC90 T8 Excellence in Hyderabad , Mumbai post GST : 1.25Cr
XC90 T8 Excellence in Bangalore post GST : 1.37Cr

XC90 D5 Inscription in Hyderabad, Mumbai post GST : 82.90L
XC90 D5 Inscription in Bangalore post GST : 85.90L

Volvo advertises prices in Hyderabad and Mumbai as ex showroom India.

In GST scenario can't I buy the car with temporary registration in Hyderabad and pay road tax in Bangalore and register?

Can someone explain as to what's happening ?

Last edited by mjumrani : 25th July 2017 at 00:14. Reason: More Information
mjumrani is offline   (1) Thanks Reply With Quote
Old 5th August 2017, 07:03   #604
BHPian
 
drnilswap's Avatar
 
Join Date: Apr 2016
Location: Nagpur
Posts: 42
Thanked: 96 Times
Default Re: GST effect on car prices?

Anybody in the market for an SUV or high end Car would do well to go finalize their purchase soon. Govt seems to have finally realized its folly and discussions are on to correct the anomaly in taxes, post GST, regarding SUV/luxury cars wherein there was considerable reduction in taxes for these vehicles leading to significant price cuts post GST. Good news may be coming for hybrid car buyers though.

Snippets from TOI article:

Quote:
The GST Council had agreed to a 15% compensation cess on large vehicles, resulting into a situation where the price of SUVs fell, while hybrid vehicles became more expensive.
Quote:
Now, states led by Tamil Nadu are seeking a review and the issue is scheduled to be taken up on Saturday, sources told TOI. Karnataka too had raised concerns over the levy on hybrid vehicles, which were dismissed by the Centre earlier. When the rate was fixed, some of the states had flagged their concerns over the current regime, which resulted into a 43% levy including cess.
Quote:
Some states are also demanding that GST Council should increase levy on top-end luxury vehicles and SUVs.
Link => http://timesofindia.indiatimes.com/b...w/59923832.cms
drnilswap is offline   Reply With Quote
Old 7th August 2017, 02:17   #605
BHPian
 
Join Date: Apr 2013
Location: New Delhi
Posts: 193
Thanked: 270 Times
Default Re: GST effect on car prices?

As per the latest news on times of India, the government has rejected the review of the cess on hybrid cars where as it's certain that cess on SUVs and luxury cars would be increased from 15% to 25%.

Some customers may prepone their purchase but I feel that as the government will have to amend the law, they might bring in retrospective application of higher cess on vehicles purchased after a certain date. Though I'm neutral against the application of higher cess for SUVs (read gas guzzlers) but such frequent and abrupt changes to the tax doesn't bode well with the spirit of the GST and the confidence of the industry in the tax regime.

I sincerely hope that the council will take a prudent decision keeping all stakeholders in mind.
fuelinmyveins is offline   Reply With Quote
Old 7th August 2017, 02:44   #606
BHPian
 
Join Date: Aug 2007
Location: Mumbai/BLR/USA
Posts: 928
Thanked: 190 Times
Default Re: GST effect on car prices?

Government is planning to impose an additional cess on SUVs and luxury cars , likely to rise from 15% to 25%. Not sure why government is hell bend on imposing so much of taxes. http://timesofindia.indiatimes.com/b...w/59946949.cms
tj123 is offline   Reply With Quote
Old 7th August 2017, 07:18   #607
Senior - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 9,928
Thanked: 15,236 Times
Default Re: GST effect on car prices?

If you are looking out for a SUV or a luxury sedan, you need to ACT fast -as the Goods and Services Tax Council is said to have decided to raise the cess on luxury automobiles to 25% from 15% now.

Quote:
To be sure, the rates may not go up immediately as any increase in the cess will require an amendment to the GST compensation law
Name:  _jpg.png
Views: 1798
Size:  80.9 KB

link

Last edited by volkman10 : 7th August 2017 at 07:24.
volkman10 is offline   (1) Thanks Reply With Quote
Old 7th August 2017, 07:55   #608
BHPian
 
Arjun Reddy's Avatar
 
Join Date: Jun 2013
Location: Bangalore
Posts: 872
Thanked: 990 Times
Default GST effect on car prices?

Quote:
Originally Posted by volkman10 View Post
If you are looking out for a SUV or a luxury sedan, you need to ACT fast -as the Goods and Services Tax Council is said to have decided to raise the cess on luxury automobiles to 25% from 15% now.



Attachment 1664491

link

As per the above screen shot, any car over 4 Mtrs and/or 1500 cc engines will be subject to the additional 10% cess. This will even impact the New Verna, Honda city and even the Ciaz.

The SUVs are already 3% higher on the GST rate and will further go up another 10%. So will the tax rate be the same for say a Verna and a 320d ?
Arjun Reddy is offline   Reply With Quote
Old 7th August 2017, 08:31   #609
BHPian
 
Join Date: Oct 2009
Location: Chennai
Posts: 58
Thanked: 24 Times
Default Re: GST effect on car prices?

Automobile folks must be really going mad over this constant flux. Thanks to Govt changing its policies so often, they just can't plan anything. Diesel policy, Hybrid policy, Electric cars policy and tinkering of tax rates every budget :-(.

In this case, manufacturers had to reduce prices quickly as there was the "anti-profiteering" clause. Now some babu has woken up to the fact that the new rates were lesser than before, didn't they know this earlier? Imagine changing prices constantly like what Ford is doing :-).

And GST is no more "good and simple tax" - multiple tax rates, additional cess and in case of automobiles - road tax and what not. Sad.
partha379 is offline   (4) Thanks Reply With Quote
Old 7th August 2017, 09:24   #610
BHPian
 
Join Date: Sep 2004
Location: Bangalore
Posts: 146
Thanked: 50 Times
Default Re: GST effect on car prices?

It is interesting:

a) When lawmakers cite high-end cars, they name BMW, Audi but when it comes to implementation it is 4m, >1500cc

b) They say SUV - there is no proper definition of SUV. Last time they defined based on GC, the GC was lowered.

c) Wouldn't they have known what the earlier structure was and where they was a low incidence of taxes. They say "anomaly crept in" - means that people in the council were sleeping when the rates were being discussed. It was all over the newspapers but lawmakers in the council did this unknowingly. What a sham of a process.

It was expected from GST that the prices will get "rationalized" meaning some will go up and some will come down but seems the Govt wants to go back same tax structure with many rates but under the ambit of GST. I sincerely hope that for their own credibility with industry they don't change rates for a while.

~m
serious_maniac is offline   (6) Thanks Reply With Quote
Old 7th August 2017, 10:31   #611
BHPian
 
Join Date: Aug 2011
Location: Nasik / Mumbai
Posts: 427
Thanked: 590 Times
Default Re: GST effect on car prices?

Since the 25% cess rate is for >4m AND >1.5l, What rate will be applied on Ecosport petrol, Abarth Punto/Avventura/Urban Cross, Ciaz Petrol and Compass Petrol?

15% cess or 25% cess?
antz.bin is offline   Reply With Quote
Old 7th August 2017, 10:43   #612
BHPian
 
rambo1o1's Avatar
 
Join Date: Nov 2011
Location: Goa
Posts: 443
Thanked: 214 Times
Default

Arghh! And we were waiting for Diwali to pickup a XUV 500... This is really pathetic from the government, never expected them to be so careless with their original decisions.. Speaks volume of their planning.

Now I am in a dilemma, book the car soon and miss out on any offers,/ new rumored engine update or try my luck. As it is I cannot afford any price hike now, already on stretched budget.

Last edited by rambo1o1 : 7th August 2017 at 10:45.
rambo1o1 is online now   Reply With Quote
Old 7th August 2017, 10:53   #613
BHPian
 
Join Date: Dec 2016
Location: UP-14/15, KA 03
Posts: 164
Thanked: 244 Times
Default Re: GST effect on car prices?

Cess on SUVs, high-end cars likely to rise from 15% to 25%. Effective tax would be 28% GST + 25% Cess = 53 %.
So the prices will be at par with the Pre-GST era prices.

SOUCE TOI
Highh5 is offline   Reply With Quote
Old 7th August 2017, 10:57   #614
BHPian
 
Join Date: Jul 2017
Location: Mumbai
Posts: 139
Thanked: 136 Times
Default

Quote:
Originally Posted by antz.bin View Post
Since the 25% cess rate is for >4m AND >1.5l, What rate will be applied on Ecosport petrol, Abarth Punto/Avventura/Urban Cross, Ciaz Petrol and Compass Petrol?

15% cess or 25% cess?
Or for that matter even Ciaz Diesel since it's less than 1500 cc
pathik is offline   Reply With Quote
Old 7th August 2017, 11:19   #615
BHPian
 
ksameer1234's Avatar
 
Join Date: Sep 2014
Location: Pune
Posts: 374
Thanked: 623 Times
Default Re: GST effect on car prices?

This is bad. The reason people somehow bought into GST was because it was told that while some things are becoming expensive, some are becoming cheaper as well. Now, the government seems to have decided that what has become expensive shall remain expensive while what has become cheaper shall be made expensive through random cess. This is totally against the spirit of GST.
ksameer1234 is offline   (3) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
How to get on GST from OMR Chennai? Pedaltothefloor Route / Travel Queries 4 21st December 2012 22:29
Better Route - Chennai 2 Coimbatore via GST road or NH 4 ?? maheshmenon Route / Travel Queries 19 8th December 2010 09:42
NANO effect and EURO effect in Small Car market allwheeldrive The Indian Car Scene 8 15th June 2009 22:29
Directions to get to GST Road, Guindy, Chennai hydrashok Route / Travel Queries 8 10th May 2007 08:05
Effect of budget on used car prices sansjunk The Indian Car Scene 7 10th March 2006 18:20


All times are GMT +5.5. The time now is 00:59.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks