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Old 12th September 2017, 18:14   #751
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Default Re: GST effect on car prices?

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Originally Posted by krishnadevjs View Post

1. Petrol vehicles less than 4m & 1200 cc - 1% (Total 29% GST) - Alto,i20, Swift, Kwid, Amaze etc.
2. Diesel Vehicles less than 4m & 1500cc - 3% (Total 31% GST) - Alto,i20, Swift, Kwid, Amaze etc.
3. Petrol Vehicle less than 4m & 1200cc - 1500cc - 15% (Total 43% GST) - Ford Ecosport 1.5, Fiat Punto Abarth etc.
4. All vehicles more than 4m and less than 1500cc - 17% (Total 45% GST) - City, Verna, Vento
5. All vehicles more than 4m and more than 1500cc - 20% (Total 48% GST) - Octavia, BMW, Merc, Audi
6. All vehicles more than 4m, 1500cc & 170mm GC - 22% (Total 50% GST) - All SUVs

I guess this should be accurate.
Thanks. Makes it quite simple for chaps like me.

Would it be also possible to add how the original/ total tax was prior the GST, so that a layman like me can make out what's the actual impact after all this hoopla?
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Old 12th September 2017, 18:14   #752
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Default Re: GST effect on car prices?

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Originally Posted by krishnadevjs View Post
4. All vehicles more than 4m and less than 1500cc - 17% (Total 45% GST) - City, Verna, Vento
Verna would fall under 20% and is the only car in the segment to be heavily affected.
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Old 12th September 2017, 18:19   #753
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Default Re: GST effect on car prices?

Hyundai has removed all cars/SUV >4m from their website price list.

GST effect on car prices?-screenshot_20170912174215.png

It is getting updated.
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Old 12th September 2017, 18:26   #754
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Originally Posted by pathik View Post
Verna would fall under 20% and is the only car in the segment to be heavily affected.

You're right. Verna is >1.5L. Editing my post. Thanks for pointing it out.
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Old 17th November 2017, 08:49   #755
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Default Re: GST effect on car prices?

Yesterday gave my car for some major servicing.

GST on spares is at 28% and
GST on service charge is at 18%

Ended up paying around 7.5k only on Tax
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Old 17th November 2017, 10:57   #756
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Default Re: GST effect on car prices?

GST on most parts should be now 18% although I doubt there will be any change in MRP so effectively they will increase basic prices as seen elsewhere. Also note that prior to GST there were 2 components - excise @12% or so and VAT which varried from 5-14%. So even at 28% GST taxes are lower than Pre-GST era. On services though there is an increase. Perhaps Government should bring those to 12% slab.

Last edited by Turbanator : 17th November 2017 at 10:58.
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Old 17th November 2017, 16:22   #757
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Default Tax implication on marginally increasing size of compact cars

I have a doubt regarding the length compact sedan and compact SUV segment and its tax implication.

The length of majority of the cars in the compact segment (apart from Ecosport and WR-V) are in the range of 3990 to 3995 mm in length. Technically a 4mm difference is like the width of a mobile phone charger pin and hardly makes any difference to the actual length of the car. But when manufacturer projects the boot size, it can be shown to be significantly larger with this small change. In this age of competition what prevents the car manufacturers to increase the length by 4/9mm from 3990/3995mm to 3999mm?
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Old 17th November 2017, 16:42   #758
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Default Re: Tax implication on marginally increasing size of compact cars

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Originally Posted by subhro1988 View Post
I have a doubt regarding the length compact sedan and compact SUV segment and its tax implication.

The length of majority of the cars in the compact segment (apart from Ecosport and WR-V) are in the range of 3990 to 3995 mm in length. Technically a 4mm difference is like the width of a mobile phone charger pin and hardly makes any difference to the actual length of the car. But when manufacturer projects the boot size, it can be shown to be significantly larger with this small change. In this age of competition what prevents the car manufacturers to increase the length by 4/9mm from 3990/3995mm to 3999mm?
The additional length has nothing to do with boot size. It boils down to how well the manufacturer has packaged the car inside. Slimmer seats, body panels, rear seat inclination, depth etc. a lot of factors can help to increase boot space. The rear bumper in Ecosport had small extensions at the corners which itself would easily measure about 1-2cm(~=20mm).
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Old 17th November 2017, 16:55   #759
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Default Re: Tax implication on marginally increasing size of compact cars

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Originally Posted by subhro1988 View Post
But when manufacturer projects the boot size, it can be shown to be significantly larger with this small change. In this age of competition what prevents the car manufacturers to increase the length by 4/9mm from 3990/3995mm to 3999mm?
How can an 'extra' 4-9mm length can result in 'significantly larger' boot size?

The boot size is anyway measured in 'litres' and a few millilitres will not make any substantial impact.

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Originally Posted by PrideRed View Post
The additional length has nothing to do with boot size. It boils down to how well the manufacturer has packaged the car inside. Slimmer seats, body panels, rear seat inclination, depth etc. a lot of factors can help to increase boot space. The rear bumper in Ecosport had small extensions at the corners which itself would easily measure about 1-2cm(~=20mm).
True. As a matter of fact, the Ecosport measures well over 4m with that spare tire mounted at the rear! The length given on specs sheet is without considering the rear spare tire.

Regards,
Saket
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Old 18th November 2017, 14:34   #760
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Default Re: GST effect on car prices?

Hi all there are certain grey areas in GST as already previously discussed but was wondering if any clarification has come across yet or not?

I am stuck in a dilema. My vehicle is in my Pvt. Co. name and i was looking to sell it. I finally managed finding a buyer who has agreed to buy it at its book value. Now when i spoke to my CA regarding the GST to be charged at the invoice he's told me that i need to charge the same as a new car of that category which is 48%

The buyer will never pay this tax as even with VAT @ 5% earlier it was incorporated in the selling price and with 48% it becomes prohibitively expensive for the buyer!

Speaking to all the rest of the people in our circle i found out that most of the pvt. company owners had transferred their vehicles from the company to their individual names and then the car can be sold with nil GST.

Now i'm stuck and i guess i'll just have to run my car to the ground since i don't foresee any way out of this!
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Old 18th November 2017, 14:53   #761
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Default Re: GST effect on car prices?

Take second opinion, I don’t think your CA is correct.
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Old 18th November 2017, 15:31   #762
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Take second opinion, I don't think your CA is correct.

Thanks Turbanator I just cross checked with some of the dealership owners and they all are saying the same thing that is since there is no clarity they're also charging the same rates for used car sales as new cars unless it's an individual seller in which case there is no gst. They've all already transferred their personal use vehicles into their own names too!

It all seems pretty hopeless here and I tried checking online but there is no clarity for business owned cars even online.
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Old 18th November 2017, 15:35   #763
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Default Re: GST effect on car prices?

Quote:
Originally Posted by rugsrags View Post
Hi all there are certain grey areas in GST as already previously discussed but was wondering if any clarification has come across yet or not?

I am stuck in a dilema. My vehicle is in my Pvt. Co. name and i was looking to sell it. I finally managed finding a buyer who has agreed to buy it at its book value. Now when i spoke to my CA regarding the GST to be charged at the invoice he's told me that i need to charge the same as a new car of that category which is 48%

The buyer will never pay this tax as even with VAT @ 5% earlier it was incorporated in the selling price and with 48% it becomes prohibitively expensive for the buyer!

Speaking to all the rest of the people in our circle i found out that most of the pvt. company owners had transferred their vehicles from the company to their individual names and then the car can be sold with nil GST.

Now i'm stuck and i guess i'll just have to run my car to the ground since i don't foresee any way out of this!
There was a clarification from the GST council that GST will be applicable only on margin made by the dealer whenever a used car is sold. The rate of GST being same as that on new cars. So if you bought the car for 2.00L and sold it for 2.50L , you have to pay GST on Rs. 50K which is your profit.

Here we will have to treat your Pvt. Ltd. co as a registered dealer who bought the new car for XX amount. Now since you are selling it (used) at a depreciated amount, you are not making any profit as such and so GST will not be attracted. This is my interpretation and I have taken this stand when I sold one of our company cars last month.
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Old 18th November 2017, 15:51   #764
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Quote:
Originally Posted by Santoshbhat View Post
There was a clarification from the GST council that GST will be applicable only on margin made by the dealer whenever a used car is sold. The rate of GST being same as that on new cars. So if you bought the car for 2.00L and sold it for 2.50L , you have to pay GST on Rs. 50K which is your profit.



Here we will have to treat your Pvt. Ltd. co as a registered dealer who bought the new car for XX amount. Now since you are selling it (used) at a depreciated amount, you are not making any profit as such and so GST will not be attracted. This is my interpretation and I have taken this stand when I sold one of our company cars last month.

Dear Santoshbhat thank you so much for your clarification and I'll discuss this with my ca too but isn't there a caveat that the registered dealer would be the one in the business of buying and selling used cars? Since this is not what my companies normal business is won't that be a cause of contention?

Also when you did sell your company car you charged no gst wasn't there any objection from the auditors since they're telling me that this same clause is applied to used machinery too and a car falls in the same category so gst has to be charged regardless! Going by what they say an invoice apparently can not be raised with no gst!!
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Old 18th November 2017, 16:13   #765
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Default Re: GST effect on car prices?

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that this same clause is applied to used machinery too and a car falls in the same category so gst has to be charged regardless! Going by what they say an invoice apparently can not be raised with no gst!!
GST ITC is not allowed on Cars at first place unlike machinery or anything else. Though I have been told that some people are actually seeing the credit on the portal.

Again, GST on used cars at full rate is impossible to enforce especially if credit is not given at first place and given the daily changes in GST laws, you can sell the car without ant GST, I don't think anyone will be bothered.
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