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Old 10th September 2017, 15:54   #211
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

Quote:
Originally Posted by pathik View Post
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.
Not really, i spoke to the dealer he told me that it's not the actual cost of the car and then the taxes are applied even before the ex showroom cost.
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Old 10th September 2017, 18:27   #212
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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
Not really, i spoke to the dealer he told me that it's not the actual cost of the car and then the taxes are applied even before the ex showroom cost.
Here is the way to calculate the ex showroom price post cess hike.

(Current ex-showroom price/1.43)*(1.43+cess hike)

As per this calculation Verna 1.6 CRDI EX model ex-showroom will be increased from 999000 to 1034860 and CRDI SX ex-showroom price will be increased from 1111900 to 1150777. It still undercuts Honda city diesel variants.

People who booked EX CRDI variant are going to get hit badly as RTO life tax slabs increases in various states on > 10 lakhs EX-showroom price vehicles.

Last edited by theMAG : 11th September 2017 at 04:28. Reason: Typo fixed.
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Old 10th September 2017, 21:08   #213
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

Hyundai is unlikely to increase the prices of the EX models as the objective of pricing it at Rs 9,99,000 is to give consumers the benefit of lower prices below 10 lakhs INR. They will most likely increase prices of SX and SX(O) but not EX model

Quote:
Originally Posted by Nikhs View Post
Here is the way to calculate the ex showroom price post cess hike.

(Current ex-showroom price/1.43)*(1.43+cess hike)

As per this calculation Verna 1.6 CRDI EX model ex-showroom will be increased from 9999000 to 1034860 and CRDI SX ex-showroom price will be increased from 1111900 to 1150777. It still undercuts Honda city diesel variants.

People who booked EX CRDI variant are going to get hit badly as RTO life tax slabs increases in various states on > 10 lakhs EX-showroom price vehicles.

Last edited by theMAG : 11th September 2017 at 04:28. Reason: Typo fixed
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Old 10th September 2017, 21:15   #214
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by bhpfaninblr View Post
They will most likely increase prices of SX and SX(O) but not EX model
I presume this will be for all models​ in the Hyundai range, right?

I have booked a Creta 1.6L CRDi SX (O). Yet to get an update my SA. Hopefully by tomorrow everything will be clear.
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Old 10th September 2017, 21:28   #215
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

We have to see how much of the hikes are passed on to consumers across the model range. My guess is the 10L + ex-showroom priced car buyers will not be as deterred by an increase as much as the sub-10L ex-showroom priced car buyers. Passing on the entire hike to the consumers might be unfair as they did not pass on the full benefits of GST in some cases.

Below is the list from http://www.moneycontrol.com/news/bus...e-2383529.html

Looks like the Creta will be dearer by 63K for some versions and the Verna by 16K.

By the way, a4anuraag: Love your posts and wish you all the best with your new Creta. Looks like we both were on track for S-cross and are going to the Hyundai stable for different cars - me for a sedan and you for a SUV with the same 1.6 engine. If you are looking for a SUV, you might want to consider the Ecosport that could come with the Ecoblue diesel engine that kicks in torque from 1250 rpm



Quote:
Originally Posted by a4anurag View Post
I presume this will be for all models​ in the Hyundai range, right?

I have booked a Creta 1.6L CRDi SX (O). Yet to get an update my SA. Hopefully by tomorrow everything will be clear.

Last edited by bhpfaninblr : 10th September 2017 at 21:38.
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Old 10th September 2017, 22:06   #216
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Quote:
Originally Posted by agambhandari View Post
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.

With this definition of laden GC even the Jeep compass (almost a proper SUV) comes under the Sedan category and with the unladen criteria the Toyota Corolla with 185mm rated GC will come under the SUV category. Considering the overlap of car segments with respect to ground clearance I find it idiotic to tax cars based on it. Roads in India want a person to buy a car with the highest GC possible and the government is hell bent in preventing that.

My cousin called up the SA at uttam Toyota to get his Corolla invoiced today but it being a Sunday and the dealership was closed so his car will only be invoiced tomorrow. The SA had no clue whether the Corolla will be classified in the 2% or the 7% bracket till now. There's too much ambiguity in the single tax regimen. Lets see what happens. If its unladen weight the car is set to get dearer by 1L+.
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Old 10th September 2017, 22:08   #217
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Quote:
Originally Posted by bhpfaninblr View Post
We have to see how much of the hikes are passed on to consumers across the model range. My guess is the 10L + ex-showroom priced car buyers will not be as deterred by an increase as much as the sub-10L ex-showroom priced car buyers. Passing on the entire hike to the consumers might be unfair as they did not pass on the full benefits of GST in some cases.
..
The total increase on Elantra is around 50k or more including road tax and insurance in Delhi

Mod's note: Trimming an entire quoted post in the best interests of readability

I just checked the difference in Elantra SX(O) petrol automatic ex-showroom with the dealer, the cess hike on Elantra is 5% as it is >1500CC and longer than 4m
Old price was: 17,36,309
New price is: 18,14,202
so the difference is 77,000 in ex-showroom price.
Fortunately i have been able to invoice a silver car today from a different dealer at the old price, the only caveat is that the car is a February manufactured, will do a PDI on Tuesday.

Last edited by theMAG : 11th September 2017 at 04:26. Reason: Back-back posts < 20 mins. Please EDIT moving forward.
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Old 10th September 2017, 23:14   #218
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

Have gone through FM breifing yesterday and the reason citied for increase in cess hike was to match the taxes that were during pregnancy GST era.

The tax on spare parts were raised from 16% to 28% in GST. Unfortunately they won't revise these taxes as it hurts their revenue.

Overall the cost of ownership has increased significantly after GST with 3% increase in taxes on labor, insurance and almost 10% increases in taxes on spare parts.

These additional cess should lapse after 5 years. Let's see what happens after 5 years.



Quote:
Originally Posted by bhpfaninblr View Post
Hyundai is unlikely to increase the prices of the EX models as the objective of pricing it at 9999000 is to give consumers the benefit of lower prices below 10 lakhs INR. They will most likely increase prices of SX and SX(O) but not EX model
I don't think manufacturer will absorb 30k cess hike on EX variant. However, to keep price under 10lakhs Hyundai may trim some features in EX variant.
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Old 10th September 2017, 23:27   #219
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

Correct me if I am wrong but isn't the GST paid by the manufacturer itself when the car is being taken out from the factory ? The GST component is already loaded in the ex factory price.

So, the price rise on account of the change in GST would be applicable to all vehicles leaving the manufacturer's premises from 11th Sept. It will not be applicable to vehicles already in transit and those vehicles already with dealers. So, it is wrong to assume that all cars will see a price increase fro the 11th. Those cars already with dealers should not realistically bear the brunt of increased GST rates.
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Old 11th September 2017, 01:10   #220
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

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Originally Posted by RedRaider View Post
Correct me if I am wrong but isn't the GST paid by the manufacturer itself when the car is being taken out from the factory ? The GST component is already loaded in the ex factory price.
Let's say, a manufacturer sells an SUV to a dealer on 5Sep at @15% cess, however, by the time the car reaches a dealership on 11Sep, the cess is increased to 22%. Now if the invoice for the sale of this SUV to the consumer is done in the latter period, the dealer has to sell the car at 22% cess - because invoicing as well as sale of goods has happened in the 22% period. Being an indirect tax, the end consumer has to bear the entire tax prevalent on that particular day. The dealer, who has paid the 15% cess at the factory price to the manufacturer will take input tax credit on the tax already paid out by him, add his profit margins and then recover either the entire tax from the consumer or absorb the 7% additional cess as a loss (highly unlikely), & pay the same to the Govts account @22%. In some cases, the manufacturer might absorb this 7% for some period or for the cars already in stock at dealerships or in transit. But in any case post 11Sep, the total tax (28% GST + 22% CESS) has to be paid by someone, the government doesn't care by who. Hope I was able to explain

PS - Manufacturers were very slow in announcing the post GST prices, some even took more than a week, as the majority of the prices were being reduced. But I m expecting immediate price announcements from tomorrow as the manufacturers/dealers won't want to bear the additional cess by themselves
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Old 11th September 2017, 07:53   #221
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Default re: GST cess on midsize sedans, SUVs & luxury cars hiked

With the additional cess in effect, almost all automakers will pass on the additional cess to the buyers.

Here is the prospective new price tag,

Name:  Capture.JPG
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Mass market auto makers are not too worried, but the luxury makers fume,

GST cess on midsize sedans, SUVs & luxury cars hiked-60455881.jpg

Maruti Suzuki:
Quote:
As far as Maruti Suzuki is concerned, there is no change. And a two percentage point increase in cess on midsized cars is neither here nor there, and would not make a difference… The market was absorbing the same prices two months ago
Hyundai :
Quote:
We foresee no major change in demand and expect a positive demand pull in the coming months as the industry will witness a heightened level of customer interest in a seamless, unified single market.
Toyota:
Quote:
The prices of our products would go up proportionately, nearly reflecting the pre-GST scenario. This would alter the market demand growth trends… in turn hampering the nation’s revenue collections that are moving positively with the prevailing GST rates.
Audi:
Quote:
The taxes on this industry were already very high, and we expected the unfulfilled potential of this segment to increase after the implementation of GST and rationalisation of taxes. Even if the rumoured cess increase of 10% was not concluded, the prices will go up again, which is disappointing. We will need to study the impact of this increase on buyer sentiment.
Mercedes Benz:
Quote:
By continuous taxation of the segment, the overall revenue generation is going to be hurt, as the increase in price is going to hurt demand… With this increase in cess now, the prices are bound to leap back to the pre-GST regime — in some cases, higher than the pre-GST regime — and negate altogether the benefits of GST
LINK

Last edited by volkman10 : 11th September 2017 at 08:02.
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Old 11th September 2017, 10:33   #222
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Default Re: GST cess on midsize sedans, SUVs & luxury cars hiked

Quote:
Originally Posted by bhpfaninblr View Post
Hyundai is unlikely to increase the prices of the EX models as the objective of pricing it at Rs 9,99,000 is to give consumers the benefit of lower prices below 10 lakhs INR. They will most likely increase prices of SX and SX(O) but not EX model
At the launch of Verna, Hyundai had clearly announced that they will protect the price for the first 20,000 customers. As of now around 7000-8000 Verna's have been sold, so I guess they will not increase prices immediately for any variant. They probably knew this was coming and decided to give some incentive to customers to book Verna. Sales are bound to increase further now.

On a side note, manufacturers must now try to absorb the increased cess at least till the festive season is over so that people will make a mad rush to book vehicles before Diwali and they can increase their volumes, if not the margins
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Old 11th September 2017, 15:51   #223
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Default Re: GST cess on midsize sedans, SUVs & luxury cars hiked

I booked mt Creta first week of August. When Govt announced they are reviewing the Cess, pushed my dealer to get me a car by end of August itself. Did not want to risk till even 9th Sept. Did not get my choice of color (White) and instead got Red as it was available.
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Old 11th September 2017, 16:19   #224
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Proposed rates of compensation cess on vehicles is attached.
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GST cess on midsize sedans, SUVs & luxury cars hiked-1505126879702.jpg  

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Old 11th September 2017, 17:38   #225
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Default Re: GST cess on midsize sedans, SUVs & luxury cars hiked

Isn't the ground clearance as per the definition of "laden weight" by ARAI ?

http://www.team-bhp.com/forum/techni...en-weight.html (2017 ground clearance update - ARAI now measuring GC with laden weight)

I guess in that case many vehicles would be spared of the 170mm definition ?
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