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Old 10th September 2017, 11:41   #196
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by Mindgrinder View Post
Hyundai would be hit at all models even Verna, because of 1.6 engine it would get 5% increase.
I agree.

There was a long standing differential tax treatment for engines below 1500cc before the GST kicked in. It was there along with (or even before) the "small car" norms came in some years back.

If I remember correctly, Ford launched their second generation Fiesta with its engines designed to be under 1500cc. Almost all new motors in the Indian market since then are designed to be under 1500cc.

Hyundai continued with their 1.6 engines and now their Verna is almost seems top be singled out in this somewhat punitive cess regime. Wonder whether they will downsize their engines to <1500cc.
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Old 10th September 2017, 11:49   #197
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by pathik View Post
Seems wrong. They have missed the 5% Cess Category for Verna etc.
I observed that too. But then told myself that (considering the nature of how things are being done) maybe the gst council were chauffeured around in a new verna and they loved the engine refinement so much that they decided to just raise the cess by 2%. And since they can't differentiate between elantra and verna they might have thought both cars were the same and hyundai might have accidentally put 2 different badges.

But one thing I totally understood- Somebody knows something, nobody knows everything, everybody knows nothing!
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Old 10th September 2017, 12:22   #198
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by pathik View Post
Seems wrong. They have missed the 5% Cess Category for Verna etc.
+1 to that. They also seems to have ignored the fact that engine capacity should also be more than 1.5 litre to be classified as a SUV. So, Ertiga, 1.4 CRDI Creta, Honda BRV, Renault Lodgy, Duster 1.4 dCi and Jeep Compass 1.4 Multi Air would all get only 2% increase as they would be classified as mid-segment cars.

Best way to overcome the engine capacity issue is to bring Turbo Versions of engine capacity less than 1.5 Litre like the 1.4 MultiAir Fiat Engine.
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Old 10th September 2017, 12:42   #199
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by DImPo View Post
Jeep Compass 1.4 Multi Air would all get only 2% increase as they would be classified as mid-segment cars.

Best way to overcome the engine capacity issue is to bring Turbo Versions of engine capacity less than 1.5 Litre like the 1.4 MultiAir Fiat Engine.
I think petrol engines that are 1200 cc and below would enjoy the benefits. Based on this assumption, 1.4 MultiAir would have the same effect as that of the 2.0 MJD.
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Old 10th September 2017, 12:52   #200
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

Though the current structure still not perfect, I'm glad that at-least they didn't blindly increase the Cess equally in all segments, which had been proposed earlier - and would have been stupid.
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Old 10th September 2017, 12:57   #201
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Originally Posted by GrammarNazi View Post
Hike applicable tomorrow onwards.



Attachment 1674503



Happy Festive Season.

Sorry if i sound like a noob so does this mean cars bought tomorrow will be affected by the hike or the cars bought Tuesday onwards. If the official notification is to come out on the 11th I presume the taxes will rise from 12th of September. Important as my might buy the Toyota Corolla tomorrow if he can get it for the pre Cess price or wait for the Jeep 4*4 to be delivered if the Cess has already increased.
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Old 10th September 2017, 13:09   #202
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by ece2k2 View Post
I think petrol engines that are 1200 cc and below would enjoy the benefits. Based on this assumption, 1.4 MultiAir would have the same effect as that of the 2.0 MJD.
The 1.2 litre petrol engine restriction is only for small cars having length less than 4 meter. To qualify for mid-segment, the engine capacity should not exceed 1.5 litre, irrespective of whether it is Petrol or Diesel.
So we could see more vehicles fitted with Eco-boost(Ford), Boosterjet(Maruti), VTEC Turbo (Honda), TSI Twincharger (Volkswagen) etc.
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Old 10th September 2017, 13:23   #203
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Originally Posted by ToyotaFan View Post
Sorry if i sound like a noob so does this mean cars bought tomorrow will be affected by the hike or the cars bought Tuesday onwards. If the official notification is to come out on the 11th I presume the taxes will rise from 12th of September. Important as my might buy the Toyota Corolla tomorrow if he can get it for the pre Cess price or wait for the Jeep 4*4 to be delivered if the Cess has already increased.
Cess will be effective from 00:00 hours on 11th September. So any car that gets invoiced after 11:59 pm today will attract the new Cess

Last edited by pathik : 10th September 2017 at 13:26.
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Old 10th September 2017, 14:09   #204
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by Mindgrinder View Post
Hyundai would be hit at all models even Verna, because of 1.6 engine it would get 5% increase. People who got Verna before this announcement are lucky.
Well if I were to buy a car in that segment, it would be the main reason to avoid buying the Verna.

That 100 cc extra it has over it's competition is a liability not only when it comes this cess, but also in third party insurance premiums. Cars above 1500 cc are charged 10K odd while below 1500cc, its only 3.5K. Over the lifecycle of say 10 years, you will save 65K even when accounting for the current difference in premium.

The 1.6 diesel is blast to drive , but I won't be paying around 1 lakh extra for it. The difference in power is negligible.
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Old 10th September 2017, 14:32   #205
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Originally Posted by Ragavsr View Post
Well if I were to buy a car in that segment, it would be the main reason to avoid buying the Verna.

That 100 cc extra it has over it's competition is a liability not only when it comes this cess, but also in third party insurance premiums. Cars above 1500 cc are charged 10K odd while below 1500cc, its only 3.5K. Over the lifecycle of say 10 years, you will save 65K even when accounting for the current difference in premium.

The 1.6 diesel is blast to drive , but I won't be paying around 1 lakh extra for it. The difference in power is negligible.
3% additional cess on ex-factory price should not result in a price difference of more than 30-40k. This and the fact that Verna is already priced aggressively means that City will still be expensive compared to Verna if you compare model by model.
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Old 10th September 2017, 14:42   #206
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by pathik View Post
Cess will be effective from 00:00 hours on 11th September. So any car that gets invoiced after 11:59 pm today will attract the new Cess
Cess would be applicable from 11 SEP, but it wouldn't affect the buyer until the company revised the price. While most of them would be quick to revise, some may absorb it. Just like how they decided whether to pass on the GST benefit fully/partially to the consumers.

PS: Those who advertise prices as "starting at 9.99L" etc would try to absorb the difference.
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Old 10th September 2017, 14:50   #207
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by civic-sense View Post
Cess would be applicable from 11 SEP, but it wouldn't affect the buyer until the company revised the price.
Revision of the pricing once it is implemented will be instantly done. I don't think any of the hike will be absorbed by the manufacturer.

At least they could have put this hike implementation post festival. Life would have been happier for all. Just my opinion.
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Old 10th September 2017, 15:00   #208
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

With SUVs getting a different cess and the definition of SUV having the GC>170mm as a criteria, I am wondering whether the recent decision to consider the Laden GC was some sort of a colluded plan by the ARAI and the manufacturers so as to get the lower tax bracket.
Because as I see it, only the proper off roaders/ladder frame cars would have a GC>170mm(laden). Pretty much all soft roaders even the luxury ones would duck under this.
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Old 10th September 2017, 15:10   #209
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

The increased cess is going to impact leasing companies business badly.
50% GST will be applied on rentals that includes 12-15% interest component making it effectively 18-22.5% interest.
They need to come with innovative business model or keep contended with cars upto 31% GST.
Only these cars would be worth the hassle for prospective car buyer employees.
Message is clear, this perk is dead.
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Old 10th September 2017, 15:49   #210
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

Quote:
Originally Posted by pathik View Post
Cess will be effective from 00:00 hours on 11th September. So any car that gets invoiced after 11:59 pm today will attract the new Cess
I am about to pick up a Superb L&K TSI. Dealer said they would invoice the car today to avoid cess hike.
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