[DImPo]

Originally Posted by volkman10

All cars more than four metres in length will become more expensive.

Though it is not clear at present, I presume that the higher cess of 25% would be applicable only for cars > 4 meter in length and having engine capacity>1500cc. Therefore, cars/SUVs > 4 meter length but engine capacity < 1500cc may not be affected by the increase. However, more clarity may emerge in the comming days.

[volkman10]

Originally Posted by DImPo

Though it is not clear at present, I presume that the higher cess of 25% would be applicable only for cars > 4 meter in length and having engine capacity>1500cc. Therefore, cars/SUVs > 4 meter length but engine capacity < 1500cc may not be affected by the increase. However, more clarity may emerge in the comming days.

With Maruti Suzuki's chief replying to it( below quote) I guess higher cess seems applicable to cars fulfilling either one of the criteria. S Cross, Ciaz and Ertiga in their portfolio will be impacted.

Plans for global hatchbacks( like Polo,etc ) greater than 4.0m in length is likely to be shelved as India specific products don't make business sense in the current scenario.

While Maruti Suzuki chairman RC Bhargava said the company would have to work out the impact of revised rates to determine vehicle prices

[Arjun Reddy]

Originally Posted by DImPo

Though it is not clear at present, I presume that the higher cess of 25% would be applicable only for cars > 4 meter in length and having engine capacity>1500cc. Therefore, cars/SUVs > 4 meter length but engine capacity < 1500cc may not be affected by the increase. However, more clarity may emerge in the comming days.

To get into the lower tax bracket the manufacturer must be complaint with both the conditions. Should be less than 4 Mtrs and lower than 1500 cc engine.

Classic case is Ciaz, it will attract higher tax because it's over 4 Mtrs in length though it has a 1300 cc engine. However the Brezza gets away as it is under the 4 Mtrs length, has a 1300 cc engine and has ground clearance of less than 170mm. Even if the Brezza's ground clearance had exceeded 170mm it would be classified as an SUV.

[octane_100]

This is what BMW had to say when GST was announced. Wonder what they will say now

[drashkum]

New verna will be impacted as it is a 1.6L engine and bigger than 4M. Ciaz already in higher tax slab due to SVHS. I wonder what more they can increase for ciaz.

[ottocycle]

Will Nexon be also affected because of this. Was looking for the Nexon. Looks like Government is keen on bringing the surcharge increase before Nexon is launched

[sgiitk]

The Govt is still muddled. The recent increase in GST on 'so called' luxury cars is impacting all over. I do not see how the Honda City is a 'luxury car'.

While personally I am all for attacking the SUVs and the like, for Gods Sake use your brains (if you have any left). Or is it the the Govt wants to revert to the M800 days.

[fuelinmyveins]

Originally Posted by ottocycle

Will Nexon be also affected because of this. Was looking for the Nexon. Looks like Government is keen on bringing the surcharge increase before Nexon is launched

Right now in the famous words of Ford CEO " EVERYTHING IS ON THE TABLE".

The finance ministry has notified it's intent to raise the ceiling of cess from 15% to 25%.

By what quantum shall the cess be raised on various segment of cars will be decided in the GST council meeting in September.

Theoretically the cess can be increased on all the cars to 25% but practically ( though it's difficult define what is "practical" in face of such volatile and adhoc decisions by authorities ) the additional cess will be limited to SUVs and luxury cars. Now what is the definition of a luxury car is anyone's guess.

Our politicians do set a brilliant example by arriving on their powerful chariots cough " German SUVs" only to tell ordinary middle class that ciaz is a luxury car.

[vkaul1]

Well the added impact to people in MH is the additional 2% RTO charges levied by the state govt due to claimed loss of revenues. Will things like those too be rolled back?? Unlikely.

Only the common "tax paying" citizen has to contend with living with small, poorly engineered vehicles while the "bulk" of the people buying / affording the luxury cars will hardly blink for additional 10%.

Yes, India with the population density & lower land mass is less conducive to having a lot of cars on the roads, but then where are the comfortable & reliable mass transit systems?

[drashkum]

Originally Posted by ottocycle

Will Nexon be also affected because of this. Was looking for the Nexon. Looks like Government is keen on bringing the surcharge increase before Nexon is launched

Yes, mostly because it has a ground clearence above 170mm. The government is yet to clarify on that. But mostly yes. Only A and B1 segments are saved from the hike i think

[sanchari]

Unless the pre-GST car lease issue is fixed, I think this means that the lease amount will go up even more for those leased cars before GST which is above 4m!

Tweet to the GST council handles @gst_council, @askGST_GoI, @arunjaitley and register your protests.

[Cooltronics]

Originally Posted by fuelinmyveins

As far as I can remember, there was a slight correction in the prices of the mid size sedans but surely not to the tune of 10%, though I may be wrong on this.

Prices corrected by upto 8% and that is because the decrease happened on the Base Price - Selling Price before taxes.
Upward correction will also happen on Base Price and hence should not be actually 10% of Ex Show Room Price.
Irrespective - this is a retrograde decision and many people like me AKKA Middle Class who supported the reformist policy of the government inspite of seeing every commodity and service getting costlier has to think now whether GST migration is really streamlining since nothing is cheaper than previous VAT avtar

[aadya]

Originally Posted by AbhisheKulkarni

Let me ask a very simple and basic question:
=====
Not sure what's the problem with this move.

Dear Mr.Kulkarni,

This is what the communists all over the world tried to do and failed on the most accounts. A capitalist society that rewards you for your effort and risk taking ability, coupled with the government being motherly towards weaker section-read a welfare government is the need of the hour.

In first place GST is supposed to even out and combine multiple taxes in to a single tax. It should mean that some of the materials should have costed less(for common man) and luxury items should have costed same. I don't think same thing is happening.

Nothing wrong in taxing the rich - Read this, the GST+CESS on a 30lakh car is 15lakhs, Plus the road tax is 5 lakhs making it 50lakhs OTR. And to pay this 50lakhs we should have earned 71lakhs(add income tax to that 50lakhs).

Do you think this is equitable and reasonable tax system? And after paying all this you can't use the car anywhere in this so called One Nation with One TAX.

[aadya]

It suddenly dawns on me whether the government classifies the SUVs by keeping the potholes deeper and Speedhumps taller so that the manufacturers cannot bend the rule by keeping 169mm GC.

[drashkum]

Originally Posted by aadya

It suddenly dawns on me whether the government classifies the SUVs by keeping the potholes deeper and Speedhumps taller so that the manufacturers cannot bend the rule by keeping 169mm GC.

If that happens what will happen to non SUV vehicles ( sedans and hatches) which have GC below 170mm?

If they make the speed bumps taller and roads bumpier anymore we can refrain paying road tax 😂