[Flyer]

GST On Electric Car Batteries Could Come Down Drastically.

GST on electric car batteries could be reduced from 28 per cent to 12 per cent as per a proposal that has been put forward by the Government. That could result in a drop in electric car prices in India.

Source

[Turbanator]

Originally Posted by Flyer

GST On Electric Car Batteries Could Come Down Drastically.

I don’t think it will make any difference as the end product has higher GST % so any reduction in input GST won’t impact.

[volkman10]

Cars costing over Rs 10 lakh to carry extra tax

Cars priced higher than Rs 10 lakh may start costing Indians more, following the latest directive from the Central Board of Indirect Taxes and Customs (CBIC).

The government has said goods and services tax (GST) is payable on the invoice value plus tax collected at source (TCS) under income tax and not just on the value of the goods. The clarification implies that consumers will have to cough up GST on the value of tax collected by an auto dealer.

Link

[Turbanator]

Originally Posted by volkman10

Cars costing over Rs 10 lakh to carry extra tax

This cannot be correct, TCS portion does not go to the dealer or manufacturer, from the same article-

Quote..

TCS is principally not a consideration for the goods sold but is merely the collection of income tax on behalf of the buyer, hence the applicability of GST appears to be incorrect

since TCS is essentially collected and paid on behalf of the buyer, logically it should not be subject to GST and the government should consider amending the law, if needed

[born_free]

Originally Posted by Turbanator

And as per another Notification, Input credit on Lease/ Rental will also be not available, though I am not sure on this given the high repercussions.

Attachment 1847036

Does it mean that employees who have taken car lease from their employer will get affected ?

[Turbanator]

Originally Posted by born_free

Does it mean that employees who have taken car lease from their employer will get affected ?

From what I understand, this will affect companies who had got the vehicles on lease and were taking ITC on the GST portion of lease. For an individual there should be no change unless the company had got into some agreement with an employee that they deduct only basic amount and not GST portion on the lease. Or some self employed persons who have GST number in their own name, they will no longer get ITC for this. Since the Government never allowed ITC on the vehicles, I see this more as technical correction.

[FrodoOfTheShire]

Originally Posted by volkman10

Cars costing over Rs 10 lakh to carry extra tax

Originally Posted by Turbanator

This cannot be correct, TCS portion does not go to the dealer or manufacturer, from the same article-

Customers have already started paying it. Quoting below post from Tata Harrier thread by the first BHPian to get delivery of the Harrier

Originally Posted by hridayjyoti

Yes, TCS is 24375 with taxes (16250+50% GST) and handling charges of 9500.

[hridayjyoti]

Originally Posted by FrodoOfTheShire

Customers have already started paying it. Quoting below post from Tata Harrier thread by the first BHPian to get delivery of the Harrier

Sorry, I forgot to mention I have taken the Tata Harrier on company lease by leaseplan. However, Hartron Motors asking for it for individual buyers as well. Here is the normal quotation for direct buyers.

[A M]

The list in the above post specifically mentions 4x2. Is it an indication from Tata that they are planning an AWD version?

[S.MJet]

As per this article, Kerela High Court has put a stay on this. It was published on 21st Jan, not sure if there is another ruling overriding this.

Kerala High Court stays GST on tax collected at source on cars.

In a temporary relief to the auto industry among others, the Kerala high court has stayed the imposition of goods and services tax (GST) on tax collected at source (TCS).

[Turbanator]

Originally Posted by FrodoOfTheShire

Customers have already started paying it. Quoting below post from Tata Harrier thread by the first BHPian to get delivery of the Harrier

Completely defies the common sense. How can Bureaucrats even come up with such proposals. Why don't they simply raise the GST % and include every-thing.

I am not entirely sure if the dealerships will be actually depositing GST on TCS so if they insist, we must ask for a proper GST Invoice.

[Th!ru]

Originally Posted by hridayjyoti

Sorry, I forgot to mention I have taken the Tata Harrier on company lease by leaseplan. However, Hartron Motors asking for it for individual buyers as well. Here is the normal quotation for direct buyers.

Interesting to find a new shade 'Atlas black' in that pricelist. Has Tata added it officially? I don't see that in their website.

[Arjun Reddy]

A clarification issued by the government.

GST will not be collected on the TCS amount.


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[Venkatesh]

After several requests from vehicle manufacturers in India, the Centre has hinted that it is ready for negotiations to reduce GST rates on cars and two-wheelers.

From Maruti to Honda, car and two-wheeler manufacturers in India have raised the issue of high GST rates and have sought Centre's help to rationalise it in order to make vehicles more affordable and boost sales.

Source

[theredliner]

Originally Posted by Venkatesh

After several requests from vehicle manufacturers in India, the Centre has hinted that it is ready for negotiations to reduce GST rates on cars and two-wheelers.

Looking at how the manufacturers have got used to increasing prices every few months, whatever tax reduction that's going to happen (if at all) will be eaten up by them within a year and they'll be back to complaining.

I remember there was a reduction in CBU duties on bikes after Trump had made some noise. Some portion of it was passed on to the customers, but the prices were back to what they were before, after a year or so. I remember this at least with the Honda Fireblade.

So, instead of cutting GST, I'd be happier if the income tax paying individuals are allowed to claim refund of whatever reduction is going to happen based on the taxable income. Making the rich farmers and income tax evading businessmen pay less would only lead to further increase in fuel prices and income tax.

One nation one road tax was one good thing that would have brought about some good changes in the Southern states, but with the centre defaulting on GST compensation to the states, they'd not bother bringing up the proposal for another 10 years.