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Old 30th August 2017, 17:28   #721
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Default Re: GST effect on car prices?

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Originally Posted by pathik View Post
For invoicing to be possible, you need to make the full payment (or down-payment plus loan disbursement) AND the Vehicle needs to be alotted to you - so you need the VIN and Chassis number of the car.
Depends, I could convince the dealer to invoice with 25% payment.
The dealer also must be getting some days credit from the manufacturer that is why he must have agreed. Do know know how they manage however it worked out for the end buyer like me is what matters.
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Old 30th August 2017, 17:47   #722
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Originally Posted by DriveOnceMore View Post
Hi..

Can anyone help me regarding a confusion I am having about the prices of MS S-Cross after this revision in cess?
As S-cross is longer than 4m, will this car also come under 25% cess bracket?
Or only 1.6 variant will fall under this ?

I think I only have 10 more days in my hand, before GST counsil officially rolls this out.

I think you will have more than 10 days. The GST council will also have to approve, then an ordinance will be passed and finally it needs the nod from the President of India. This process will surely take a month from here.

According to few reports there is some confusion that only cars above 20 lakhs and also the SUVs might have the increase. This will be decided in the GST council meet on the 9th.
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Old 30th August 2017, 20:20   #723
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Default Re: GST effect on car prices?

Reading the following article & a few others on this subject, it looks like the 10% may not be the final number. The cabinet seems to have approved it as the ceiling, but its upto to GCT council to fix the final number, or so it seems. It may very well be less than 10% or perhaps even a bit more sensible by having an range of values for different segments. One can only wait and watch. Manufacturers may even absorb some of the increase, who knows...

http://www.moneycontrol.com/news/aut...y-2373377.html
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Old 30th August 2017, 20:36   #724
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Originally Posted by SR-71 View Post
Reading the following article & a few others on this subject, it looks like the 10% may not be the final number. The cabinet seems to have approved it as the ceiling, but its upto to GCT council to fix the final number, or so it seems. It may very well be less than 10% or perhaps even a bit more sensible by having an range of values for different segments. One can only wait and watch. Manufacturers may even absorb some of the increase, who knows...

http://www.moneycontrol.com/news/aut...y-2373377.html
If I heard right, FM was saying that they would increase the cess by 7% to make it 50% from the current rate of 43%
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Old 3rd September 2017, 20:09   #725
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Can we claim GST input credit, if the car is purchased in a company's name for company's use?
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Old 3rd September 2017, 20:27   #726
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Default GST effect on car prices?

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Originally Posted by Chethan B G View Post
Can we claim GST input credit, if the car is purchased in a company's name for company's use?

No. Anything that you claim depreciation on is not allowed under GST.if that was allowed you would get your cars at 53% off. Lol

Last edited by Arjun Reddy : 3rd September 2017 at 20:35.
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Old 3rd September 2017, 21:10   #727
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LOL thanks for the clarification!

By the way, 53% includes cess. Cess can't be credited back even if depreciation is not claimed for the item purchased..

Just thinking, if the car is held for only a couple of years, does it make sense to just claim GST input credit and not bother about claiming depreciation?
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Old 3rd September 2017, 21:26   #728
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Originally Posted by Chethan B G View Post
LOL thanks for the clarification!

By the way, 53% includes cess. Cess can't be credited back even if depreciation is not claimed for the item purchased..

Just thinking, if the car is held for only a couple of years, does it make sense to just claim GST input credit and not bother about claiming depreciation?

It's not a choice. It just isn't allowed.

An extract from clear tax.

Items on which credit is not allowed
Motor vehicles and conveyances except the below cases
Such motor vehicles and conveyances are further supplied i.e. sold
Transport of passengers
used for imparting training on driving, flying, navigating such vehicle or conveyances
Transportation of goods

Last edited by Arjun Reddy : 3rd September 2017 at 21:27.
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Old 3rd September 2017, 21:40   #729
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It just isn't allowed.
correct, not allowed as ITC but any clue if GST portion on Lease Rental can be claimed back as ITC?

https://www.hubco.in/articles/12-cas...d-with-example

https://cleartax.in/s/gst-cases-wher...is-unavailable
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Old 4th September 2017, 12:38   #730
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Originally Posted by pathik View Post
For invoicing to be possible, you need to make the full payment (or down-payment plus loan disbursement) AND the Vehicle needs to be alotted to you - so you need the VIN and Chassis number of the car.
The Hyundai dealer asked me to pay 75% of the payment so that he can get the invoice prepared immediately. My question was, if the vehicle is already in their stockyard or is in transit, why do they require upfront payment. They can as well allot it to me and get the payment after it is made available for an inspection.

Prior to GST introduction, the dealers were asking to book immediately as prices will increase by a lac. Turned out, the prices decreased by almost a lac. Now again they are asking people to book immediately as prices will increase by a lac, without really knowing for sure for which segment and vehicles, the prices will actually increase. Either way, dealers are looking at converting bookings by playing on this fear.
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Old 4th September 2017, 23:16   #731
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Default Re: GST effect on car prices?

Attaching GST notification sent to me by hyundai dealer. However the notification doesn't specify the date from when it is effective. Looks like govt is pushing for cess hike ASAP.
Attached Files
File Type: pdf GST Cess - Gazette Notifcn.pdf (60.2 KB, 246 views)
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Old 5th September 2017, 06:30   #732
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Default Re: GST effect on car prices?

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Originally Posted by Nikhs View Post
Attaching GST notification sent to me by hyundai dealer. However the notification doesn't specify the date from when it is effective. Looks like govt is pushing for cess hike ASAP.
Now that is alright scary from a car buyers viewpoint. It is only a matter of time before it is notified & we pay more to the govt. for nothing. 9 Sep17, I believe is the next GST council meet.
Taking all things into consideration, think it will be wise to have your car invoiced for all who are sitting on the fence.
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Old 5th September 2017, 07:00   #733
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Default Re: GST effect on car prices?

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Originally Posted by Nikhs View Post
Attaching GST notification sent to me by hyundai dealer.
Which car did you book? What's the waiting period and approximate delivery date?

I am stuck with 1 month minimum waiting period for Creta top end that I booked on 30.08.17. No news on its status so far. :(

Quote:
Originally Posted by goswami.j View Post
Taking all things into consideration, think it will be wise to have your car invoiced for all who are sitting on the fence.
Risky method for some IMHO.

Not wise to invoice the car without seeing it in person.

I could have invoiced my Creta to escape the cess but I am worried if I get a car with an issue how would Hyundai deal with it.

Last edited by a4anurag : 5th September 2017 at 07:26.
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Old 5th September 2017, 11:30   #734
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Default Re: GST effect on car prices?

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Originally Posted by a4anurag View Post
Which car did you book? What's the waiting period and approximate delivery date?

I am stuck with 1 month minimum waiting period for Creta top end that I booked on 30.08.17. No news on its status so far. :(
Have pre Booked Verna, the Invoice and Temp Registration have been done yesterday. As per the Kun United Hyundai dealer in AP, just getting the invoice won't help as the updated ex-showroom price will be sent to RTO and we end up paying life tax on updated price, so went ahead and got the TR done yesterday though I will be taking delivery on Aug 22nd.
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Old 5th September 2017, 12:58   #735
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Default Re: GST effect on car prices?

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Originally Posted by Nikhs View Post
Have pre Booked Verna, the Invoice and Temp Registration have been done yesterday. As per the Kun United Hyundai dealer in AP, just getting the invoice won't help as the updated ex-showroom price will be sent to RTO and we end up paying life tax on updated price, so went ahead and got the TR done yesterday though I will be taking delivery on Aug 22nd.
You have done a good thing (getting TR done). You are in the safe zone now.
I think there is a typo. is the delivery date Sep 22nd?
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