Team-BHP - GST effect on car prices?
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Experts,

Need your opinion on cars that were classified as mild-hybrids.

What would be the GST impact on cars like Ertiga (SHVS) diesel and Scorpio IntelliHybrid. Were these cars on the 30% Excise or on the 12.5% Excise meant for hybrids?

If these were in the 12.5% Excise as of now, then post GST these cars would become expensive I guess.

Yes you are right. As things stand now, mild hybrids will become more expensive.

True leaders, these are - Full ET Article.

Quote:

Leading automobile companies including Maruti Suzuki, Bajaj Auto and Hyundai Motor India have agreed to absorb losses to dealers on inventories at their stockyards as the country transitions to goods and services tax.

No more cess on 28% GST for automobiles clap:

http://www.drivespark.com/four-wheel...22-022431.html

Quote:

No more cess on 28% GST for automobiles
Cannot be correct, it is simply not going to happen.

Through the Taxation Law Amendment Act 2017, The Industries (Development and Regulation) Act 151 – cess on automobiles (cars and motorcycles) will no longer be applicable.

GST effect on car prices?-123.png


link

Quote:

Originally Posted by Turbanator (Post 4212936)
Cannot be correct, it is simply not going to happen.

I agree, no way are they going to give up the 15% GST Cess. I think they are talking about additional cesses levied in earlier budgets like infra cess. My guess is the GST drafts are unclear whether these cesses will continue in addtional to GST levy. So I guess the Govt. has now clarified.

Quote:

Originally Posted by Herbie98 (Post 4212491)
Experts,

Need your opinion on cars that were classified as mild-hybrids.

What would be the GST impact on cars like Ertiga (SHVS) diesel and Scorpio IntelliHybrid. Were these cars on the 30% Excise or on the 12.5% Excise meant for hybrids?

If these were in the 12.5% Excise as of now, then post GST these cars would become expensive I guess.

Ciaz SHVS and Ertiga SHVS prices will definitely increase to the tune of 10% on ex-showroom. We've been told to liquidate all stocks by month end else the buyers will have to bear the additional cost.

what happened to the GST revision for hybrid cars ? have they cancelled it and finalised 28% +15 % on hybrid as final ?

Quote:

Originally Posted by M00M (Post 4213114)
what happened to the GST revision for hybrid cars ? have they cancelled it and finalised 28% +15 % on hybrid as final ?

Basically they have clamped down on the so called hybrids which were obviously not. Like cars with auto start-stop and the like. Position regarding true hybrids and electrics is not clear If they want to start phasing out the IC engine within a decade, then some sops are necessary.

Quote:

Originally Posted by volkman10 (Post 4213006)
Through the Taxation Law Amendment Act 2017, The Industries (Development and Regulation) Act 151 – cess on automobiles (cars and motorcycles) will no longer be applicable.

Attachment 1646609


link

I think the amendment is just to support the GST before implementation on July 1st. The article reads "its just to ease the GST roll out"

Quote:

Originally Posted by blackwasp (Post 4213081)
Ciaz SHVS and Ertiga SHVS prices will definitely increase to the tune of 10% on ex-showroom. We've been told to liquidate all stocks by month end else the buyers will have to bear the additional cost.


So what happens to luxury cars with a similar function for example the Mercedes C Class. Will it be 28+ 15% cess instead of 28+13%. So a Mercedes with this auto stop function will be 2% costlier than one without that function.

Quote:

Originally Posted by Arjun Reddy (Post 4213182)
So what happens to luxury cars with a similar function for example the Mercedes C Class. Will it be 28+ 15% cess instead of 28+13%. So a Mercedes with this auto stop function will be 2% costlier than one without that function.

No, the luxury car companies were not as creative with the Start Stop function to call them mild hybrid and lower the tax liability.

Read: no affect on luxury cars.

Quote:

Originally Posted by Arjun Reddy (Post 4213182)
So what happens to luxury cars with a similar function for example the Mercedes C Class. Will it be 28+ 15% cess instead of 28+13%. So a Mercedes with this auto stop function will be 2% costlier than one without that function.

Quote:

Originally Posted by BeamerBoy (Post 4213191)
No, the luxury car companies were not as creative with the Start Stop function to call them mild hybrid and lower the tax liability.

Read: no affect on luxury cars.

The luxury cars such as the C-Class have an auto start-stop that merely acts as a smart tool to turn the engine off and on when you're at a stand still, and doesn't have any of the other systems that the mild-hybrids have such as the brake energy regeneration. It is therefore not considered in the mild-hybrid category.

Quote:

doesn't have any of the other systems that the mild-hybrids have such as the brake energy regeneration.
I think BMW EcoPlus mode does exactly same and even display extended mileage that you got due to driving in that mode but they never termed it hybrid.


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