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Quote:
Originally Posted by Adsc0230
(Post 5583661)
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It's just government's new ingenious plan to facilitate the buyers and boost car sales by increasing tax slabs. Now MUVs and other Utility vehicles whatever they are called will be taxed as same as an SUV. They just clubbed all the UVs under a single category to provide the utmost benefit to the buyers and for easier classification, we were having big trouble there rl:
Now Innova will be taxed same as Fortuner. The Cess is increased from 18 to 22%. The same has been discussed under GST impact on cars Thread.
Sarcasm is fully intended, if anyone don't get it.
The GST Council met for the 50th time this week to discuss a long-standing loophole that allowed certain models to avoid high compensation cess levied on SUVs. The government has now clarified the definition of UVs, which include SUVs, MUVs and crossovers.
According to the revised definition, 22% cess would be levied on SUVs, MUVs and crossovers with lengths exceeding 4,000 mm, engine capacity exceeding 1,500cc and unladen ground clearance of 170 mm and above.
This means sedans with a ground clearance of 170 mm or more will not come under the higher cess bracket. Sub-4 meter crossovers, midsize SUVs and MPVs with engines smaller than 1,500cc will attract lower compensation cess. The government has also maintained the lower 15% cess rate on hybrid vehicles.
How will this affect vehicle prices?
SUVs and MPVs like the Mahindra XUV700 and Toyota Innova Hycross will get costlier by 2%. However, the hybrid Innova Hycross and the Maruti Invicto would benefit from the lower cess rate, making them more popular in the long run.
Source:
TOI Link to Team-BHP News
Quote:
Originally Posted by TusharK
(Post 5584198)
SUVs and MPVs like the Mahindra XUV700 and Toyota Innova Hycross will get costlier by 2%. However, the hybrid Innova Hycross and the Maruti Invicto would benefit from the lower cess rate, making them more popular in the long run.
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This 2% increase is on the base price of the car, which means corresponding increase in road tax and insurance as well.
Does this affect prices of current SUVs like Thar and Jimny? Do they become cheaper?
A really weird way to define a utility vehicle. Is the government taking any effort to make roads such that Unladen GC of 170mm would work?
Now expect all cars to scrape speed breakers and crash into potholes since the manufacturers are expected to reduce the GC to fit into lower tax brackets just like they sliced SUVs' when the length was restricted to 4000mm.
Very very bad move.
One question which i cannot wrap my head around is why were Hybrid cars charged with 43% tax previously? Has this changed to now 15%? Wouldn't this be applicable for sedans too?
Quote:
Originally Posted by Rohan1511
(Post 5584395)
One question which i cannot wrap my head around is why were Hybrid cars charged with 43% tax previously? Has this changed to now 15%? Wouldn't this be applicable for sedans too?
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There are no changes here for hybrids. It will stil be 28% GST + 15% Cess = 42% Total Tax (excl Roadtax)
So micro SUV prices would also rise since they all exceed 170mm ground clearance.
Whats the impact on cars like Creta , Seltos etc ? Will they also get the hike ?
The government wants to cash in on the UV demand in the country. Even the smaller hatchback-sort-of cars are being sold with some kind of fancy UV name. The Indian consumer seems to be buying it and the formula seems to be working for the car manufacturers.
Quote:
Originally Posted by wolf_lone
(Post 5584427)
So micro SUV prices would also rise since they all exceed 170mm ground clearance.
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What I understand is that if the vehicle fulfills the criteria of 1) GC greater than 170 mm 2) Longer than 4 meters, and 3) an engine capacity of over 1,500 cc will fall under the UV category.
PS: These kinds of actions are going to dismantle the automobile sector piece by piece.
So the tax rule is ‘and’ or ‘or’ . Do all criterion need to fulfill or only one of them to fulfill the higher tax
Quote:
Originally Posted by Gamemaztr
(Post 5584327)
A really weird way to define a utility vehicle. Is the government taking any effort to make roads such that Unladen GC of 170mm would work?
Now expect all cars to scrape speed breakers and crash into potholes since the manufacturers are expected to reduce the GC to fit into lower tax brackets just like they sliced SUVs' when the length was restricted to 4000mm.
Very very bad move.
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Don't discount the smartness of auto OEMs. In the not so distant past, when such a tax was imposed based on GC, a major Indian OEM just included a small metal plate below the vehicle. This theoretically reduced the GC (out of factory) and broke off the first speed breaker you crossed right after delivery. I am sure such plans will be implemented albeit when the discrimination on SUVs gets bigger.
So is as per this definition can the Jimny and Thar become cheaper?
Thar and Jimny doesn’t fulfill the 4m criteria. Further, Jimmy doesn’t qualify the 1500cc criteria.
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