[rx100]

Originally Posted by Clown Prince

But Cess is already 22%. Then how will they reduce it from 28 to 22%?

When I bought my Alcazar last November, cess was @ 17% and GST charged @ 28%.

Originally Posted by .sushilkumar

Cess is always imposed on Tax.

Compensation Cess for automobiles was not charged on top of GST. It is a separate component on top of actual cost of vehicle.
In my case, for Alcazar, Ex showroom price defined as below

Ex showroom price = Actual cost of vehicle (A)
+ 28% of A + 17% of A

Net value = Cost of vehicle + 45% of cost.

[Clown Prince]

Originally Posted by .sushilkumar

Money control article is bit misleading.

Originally Posted by rx100

When I bought my Alcazar last November, cess was @ 17% and GST charged @ 28%.

Thanks for pointing the article out. It indeed was misleading. Also Sushil Sir, Cess on cars is additional tax as pointed out by rx100 Sir. I also know there is no 22% tax slab but the way article was written confused me.
I was partly wrong but I right to ask why he was angry Seltos tax slab won't change. SUVs are to be taxed as earlier. Government has kind of clubbed SUV with MUV and XUV, resulting in MUVs and XUVs to be taxed same as SUVs. Now all MUVs eg Innova, Ertiga will be more expensive. MUV and XUV cess is increasing from 15 or 20 to 22.
These officals really need some fresh air. They are not helping the industry or buyer in any way.

[Carlove_83]

Originally Posted by jaaz

Normally Cess is Tax on Tax, but not in the Case of GST Cess. They should've come out with a different name.

It is just additional Tax in our case. Current Tax on Kia Seltos would be 28+22 = 50%. So, a saving of 6% on Ex-factory price will make a difference. But I don't think the govt. is reducing tax, rather thinking of increasing it by changing the classification of MUV.

Current Tax on Seltos is not 50%. It is 45% (28 GST+17 Cess)
So 1.6 Engine should make it 50%, I believe

[.sushilkumar]

Originally Posted by rx100

It is a separate component on top of actual cost of vehicle.
In my case, for Alcazar, Ex showroom price defined as below

Ex showroom price = Actual cost of vehicle (A)
+ 28% of A + 17% of A

Net value = Cost of vehicle + 45% of cost.

My bad. you are right. I just had a look at my invoice and it is indeed 17% on top of actual cost of car.

[sohu9]

Will this increase in GST impact the cost of GLA? I am considering buying it in the near future. I am not sure which models are going to be impacted by this increase. Thanks in advance.

[Maky]

An excerpt from an article on Times of India website on new GST changes. Mentioned is change for what is classified as SUV:



1500cc displacement and >4m in length.

Not sure what the definition of SUVs was before but would love some clarification by someone who knows please. If possible with an example on what car/suv will become cheaper or more expensive.
Also mentioned is Sedans being classified separately.

[Geta]

Originally Posted by Maky

Mentioned is change for what is classified as SUV

1500cc displacement and >4m in length.

Not sure what the definition of SUVs was before but would love some clarification by someone who knows please.

I don't know about the Tax part. But I sincerely hope this definition puts an end to the cringeworthy monikers like "Micro SUV","Urban SUV" "Nano SUV" and so on...

[true_sedan]

I’m just confused even more. Let’s take XUV700 for example.
1) What was the cess before and what is the cess now?
2) Does this tax change only affect MUVs?

[.sushilkumar]

Originally Posted by Maky

An excerpt from an article on Times of India website on new GST changes. Mentioned is change for what is classified as SUV:
.

If i am correct, Any car meeting one of the below criterion will be eligible to receive this tax

https://www.financialexpress.com/bus...dsuvs-3166286/

The council has decided to include all Utility Vehicles, no matter what they are called — SUV, MUV, MPV, and so on. The council has said that no matter what the vehicle is called, as long it meets set parameters, it will attract a 22 percent compensation cess, over and above 28 percent GST.

As per the update, all vehicles that measure more than 4000mm in length, have an engine displacement of more than 1.5 litres, and with a ground clearance of 170mm or more will attract a 22 percent compensation cess over and above 28 percent GST.

[GS-R]

Originally Posted by true_sedan

I’m just confused even more. Let’s take XUV700 for example.
1) What was the cess before and what is the cess now?
2) Does this tax change only affect MUVs?

XUV700 had a GST of 28% and a Cess of 22% already as it is over 4M in length, engine over 1.5L and Ground clearance over 170MM. So the tax remains the same at 50% total. (Excl Road tax)

[thanixravindran]

Originally Posted by .sushilkumar

If i am correct, Any car meeting one of the below criterion will be eligible to receive this tax

https://www.financialexpress.com/bus...dsuvs-3166286/

Refer below post from December in this same thread. Babus inserted a condition called should be popularly called as SUV which led to confusion.

https://www.team-bhp.com/forum/india...ml#post5459018 (GST effect on car prices?)

I guess they tried to avoid the sedans but looks like wiser sense now prevailed. So now Sedans too got increased cess if they meet other 3 conditions?

[Mohan Mathew A]

Originally Posted by thanixravindran

Refer below post from December in this same thread. Babus inserted a condition called should be popularly called as SUV which led to confusion.

https://www.team-bhp.com/forum/india...ml#post5459018 (GST effect on car prices?)

I guess they tried to avoid the sedans but looks like wiser sense now prevailed. So now Sedans too got increased cess if they meet other 3 conditions?

As far as I understand sedans are classified separately. This is applicable only for UVs. It just brought parity between SUVs and MUVs.
Also all the 3 criteria have to be met plus it has to be a UV.
So a Hycross petrol and a Crysta will be affected by a 2% increase but a Hycross Hybrid will not be affected as it is a Hybrid and Hybrids have a cess of 15% (Total 43%).

[mithun]

Originally Posted by Mohan Mathew A

As far as I understand sedans are classified separately. This is applicable only for UVs. It just brought parity between SUVs and MUVs.
Also all the 3 criteria have to be met plus it has to be a UV.
So a Hycross petrol and a Crysta will be affected by a 2% increase but a Hycross Hybrid will not be affected as it is a Hybrid and Hybrids have a cess of 15% (Total 43%).

So in the case of Carens which is an UV with GC - 195 mm, Length - 4540 mm and a displacement of 1497 CC, there won't be any increase of cess because its <1500 CC, right?

[GS-R]

Originally Posted by mithun

So in the case of Carens which is an UV with GC - 195 mm, Length - 4540 mm and a displacement of 1497 CC, there won't be any increase of cess because its <1500 CC, right?

Since the Engine is not over 1.5L, the cess remains the same even though the other conditions are met. (more than 4M and >170mm ground clearance)

[toretto]

In VW website, Tiguan exshowroom price has increased to 35.16 lakhs. When checking with dealer, they mentioned ex-showroom increased by 46,000 due to cess increase by Government. This rate is applicable from today - 1st Aug. :(