GST Affect Car Price, Cars Get Cheaper After GST, GST Influence on Cars
How GST Affects Car Prices – Revised Price Lists Inwards
GST is perhaps the most significant economic tax reform in latest times. With the Goods and Services Tax bill, the Government aims to create a uniform tax structure across the country. Automobile manufacturers are divided over the implications of GST on car and bike prices. The implementation of GST will affect each segment differently. Most buyers are presently facing a similar dilemma – “Should I buy car after GST?” Many of you might also be wondering – “How will GST Affect Car Price?”. Let’s take a look at how car prices might be affected following the implementation of GST. We will attempt to reaction all these questions in this post here. We have also listed out Maruti Car Prices after GST. Post-GST prices of all popular manufacturers and cars will be added in due course of time.
GST Influence – GST Effect on Car Prices
Maruti Car Prices After GST
Maruti Suzuki, which has been India’s largest selling carmaker since time immemorial, has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki models have come down by upto 3%. The rate of reduction varies across locations depending on the VAT rates applicable prior to GST. However, owing to withdrawal of tax concessions on mild hybrid vehicles, prices of the Ciaz Diesel and Ertiga Diesel have gone up by over Rs one lakh. The fresh prices have been effective from July 1, 2017.
Hyundai India
Hyundai Motor India Limited, the country’s 2nd largest car manufacturer and the largest passenger car exporter has determined to pass on the GST benefit on vehicles to its customers. The rate of reduction varies from state to state across the car range depending on the earlier VAT rates. The price reduction will be upto Five.9% Ex-showroom Delhi.
Honda Cars India
Honda Cars India is suggesting a price cut of Rs 12,279 on the Brio and Rs 14,825 on the Amaze. Even the Jazz has got a price cut of Rs Ten,031. The BRV gets a discount of Rs 30,387 and the City of upto Rs 30,387.
Toyota Car Prices after GST
Mahindra
Popular UV manufacturer Mahindra has also given sizeable price cuts on most of its vehicles. On an average, prices are down by toughly 6.9 percent.
Ford India
The very loveable Endeavour is now cheaper by upto Rs three lakh!
Nissan India
Nissan Motor India Pvt. Ltd. announced that it will pass on the benefits of the GST (Goods and Services Tax) to its customers pan India. Ex-showroom prices of the company’s products have been diminished by an average of 3% depending on city and model specification.
Arun Malhotra, managing director, Nissan India Private Ltd. said, “The implementation of the GST is a positive stir for both automobile manufacturers and customers. We are blessed to pass on the benefits to our customers for a more attractive value proposition.”
Renault India Prices after GST
Luxury Cars
Manufacturers like Audi, Mercedes-Benz, BMW and Jaguar Land Rover India have diminished prices by superb extents. Mercedes claims an average price drop of 4% on the ex-showroom price of its models. Audi has diminished prices of its cars by upto Rs ten lakh. BMW is suggesting benefits of upto 12% on ex-showroom prices of its cars. These benefits include advantages due to GST, a diminished rate of interest of 7.9%, free one year insurance and free service coupons for three years. Jaguar Land Rover India has also determined to pass on benefits of up to 12% to buyers.
Mercedes India Prices after GST
BMW India Prices after GST
Audi India Prices after GST
Jaguar India Prices After GST
Mr. Vikram Pawah, President of BMW Group India said “BMW Group India welcomes the implementation of Goods and Service Tax (GST) in India. We strongly believe that GST will strengthen and foster growth in the country and benefit consumers at large. BMW is the fastest to suggest preponed GST benefits to our customers much before the roll-out of GST itself. We are certain that our customers and prospects will love their Sheer Driving Pleasure with value enhanced benefits such as a lower rate of interest, assured buyback and complementary service and insurance in addition to the GST benefits.”
How Cars Cost Less After GST?
Since GST proposes a more unified tax structure, car makers will be able to charge a uniform price across the country. Which means ex-showroom prices of vehicles across India will be the same. However, GST does not subsume taxes such as road tax, which varies across states. This means on-road price across the country will not be the same. Puny cars will fall under the 28% GST slab. There will be an extra 1% cess on Petrol and 3% cess on Diesel cars. While prices of almost every car will drop to at least some extent, hybrid cars will get costlier. The price difference inbetween diesel and petrol variants will also increase. Mid-size cars (length greater than four m, engine smaller than 1500cc) such as Maruti Ciaz will cost more or less the same, with only a very petite price cut expected for these cars.
However, while luxury cars will also fall under the 28% tax slab, an extra 15% cess will be imposed on them to ensure the Government does not incur major losses in revenue. Despite the extra cess, premium luxury cars will attract less tax, which means they will get cheaper.
Luxury cars will get cheaper
The Finance Minister has stated that the maximum tax levied will be 40%. In a bid to shove electrified vehicles, the Government has ensured they fall under the lowest tax bracket of 12%. However, rather remarkably, hybrid vehicles have been kept in the highest bracket (28% + 15%). This is a big setback for manufacturers in India who have been planning big investments towards the introduction of energy-efficient hybrid vehicles. Also, under the old tax structure, various states levied extra taxes on vehicles (eg. Octroi in Maharashtra). With the introduction of GST, these taxes will not be applicable, which means the overall percentage switch in prices of cars will vary from state to state.
No benefits for Hybrid cars under GST Bill
Puny Cars
Mostly, puny cars will get cheaper by a slight extent. The decrease in prices of petrol and diesel cars could vary. Also, from our calculations, it’s clear that states where Octroi is not applicable could see petite cars selling for only a slightly lower price after GST. However, the switch in price will be slightly more significant in states where people have been paying Octroi.
Medium Size Cars
This particular segment will not see much switch in prices. The overall tax incidence on cars such as the Ciaz and City will remain almost the same. However, as is presently the case, the Ciaz diesel thanks to the SHVS mild hybrid tech benefits from a lower VAT rate in Delhi. Under the current GST bill proposed by the Government, hybrids will be taxed the same as normal petrol/diesel cars. Unless there are revisions before GST’s implementation in July, the price of Maruti Ciaz diesel is likely to go up. Cars like the Honda City, however, are likely to cost slightly less. Also See- Post-GST Price of Maruti Ciaz | Post-GST Price of Honda City
Luxury Cars/SUVs
Luxury cars and medium and full-size SUVs will witness a definite drop in prices. In fact, manufacturers like Mercedes-Benz, Audi, BMW and Jaguar have already embarked passing benefits of GST on to customers. But this reduction is applicable only on models that are manufactured in India and not on CBUs. SUVs such as the Hyundai Creta and Tata Hexa will see a drop in prices thanks to a lower overall tax of 43% from 44.50% earlier.
Is It Better to Buy a Car After GST?
The implementation of GST will affect each segment differently. Puny cars will get cheaper by a slight margin. The effect on the prices of mid-segment cars such as the City will be negligible. The Maruti Ciaz Diesel, which is a mild hybrid, is likely to cost more now. However, luxury cars and SUVs will get cheaper, while the largest beneficiary will be hybrid vehicles. So, yes, you should buy a car after GST in case you were planning to buy a luxury car, SUV or a Hybrid. Most mass market cars, however, will not get truly cheaper after the introduction of GST. Also, cost of spares and servicing is set to go up post the introduction of GST.
GST Affect Car Price, Cars Get Cheaper After GST, GST Influence on Cars
How GST Affects Car Prices – Revised Price Lists Inwards
GST is perhaps the most significant economic tax reform in latest times. With the Goods and Services Tax bill, the Government aims to create a uniform tax structure across the country. Automobile manufacturers are divided over the implications of GST on car and bike prices. The implementation of GST will affect each segment differently. Most buyers are presently facing a similar dilemma – “Should I buy car after GST?” Many of you might also be wondering – “How will GST Affect Car Price?”. Let’s take a look at how car prices might be affected following the implementation of GST. We will attempt to reaction all these questions in this post here. We have also listed out Maruti Car Prices after GST. Post-GST prices of all popular manufacturers and cars will be added in due course of time.
GST Influence – GST Effect on Car Prices
Maruti Car Prices After GST
Maruti Suzuki, which has been India’s largest selling carmaker since time immemorial, has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki models have come down by upto 3%. The rate of reduction varies across locations depending on the VAT rates applicable prior to GST. However, owing to withdrawal of tax concessions on mild hybrid vehicles, prices of the Ciaz Diesel and Ertiga Diesel have gone up by over Rs one lakh. The fresh prices have been effective from July 1, 2017.
Hyundai India
Hyundai Motor India Limited, the country’s 2nd largest car manufacturer and the largest passenger car exporter has determined to pass on the GST benefit on vehicles to its customers. The rate of reduction varies from state to state across the car range depending on the earlier VAT rates. The price reduction will be upto Five.9% Ex-showroom Delhi.
Honda Cars India
Honda Cars India is suggesting a price cut of Rs 12,279 on the Brio and Rs 14,825 on the Amaze. Even the Jazz has got a price cut of Rs Ten,031. The BRV gets a discount of Rs 30,387 and the City of upto Rs 30,387.
Toyota Car Prices after GST
Mahindra
Popular UV manufacturer Mahindra has also given sizeable price cuts on most of its vehicles. On an average, prices are down by harshly 6.9 percent.
Ford India
The very loveable Endeavour is now cheaper by upto Rs three lakh!
Nissan India
Nissan Motor India Pvt. Ltd. announced that it will pass on the benefits of the GST (Goods and Services Tax) to its customers pan India. Ex-showroom prices of the company’s products have been diminished by an average of 3% depending on city and model specification.
Arun Malhotra, managing director, Nissan India Private Ltd. said, “The implementation of the GST is a positive budge for both automobile manufacturers and customers. We are glad to pass on the benefits to our customers for a more attractive value proposition.”
Renault India Prices after GST
Luxury Cars
Manufacturers like Audi, Mercedes-Benz, BMW and Jaguar Land Rover India have diminished prices by excellent extents. Mercedes claims an average price drop of 4% on the ex-showroom price of its models. Audi has diminished prices of its cars by upto Rs ten lakh. BMW is suggesting benefits of upto 12% on ex-showroom prices of its cars. These benefits include advantages due to GST, a diminished rate of interest of 7.9%, free one year insurance and free service coupons for three years. Jaguar Land Rover India has also determined to pass on benefits of up to 12% to buyers.
Mercedes India Prices after GST
BMW India Prices after GST
Audi India Prices after GST
Jaguar India Prices After GST
Mr. Vikram Pawah, President of BMW Group India said “BMW Group India welcomes the implementation of Goods and Service Tax (GST) in India. We strongly believe that GST will strengthen and foster growth in the country and benefit consumers at large. BMW is the fastest to suggest preponed GST benefits to our customers much before the roll-out of GST itself. We are certain that our customers and prospects will love their Sheer Driving Pleasure with value enhanced benefits such as a lower rate of interest, assured buyback and complementary service and insurance in addition to the GST benefits.”
How Cars Cost Less After GST?
Since GST proposes a more unified tax structure, car makers will be able to charge a uniform price across the country. Which means ex-showroom prices of vehicles across India will be the same. However, GST does not subsume taxes such as road tax, which varies across states. This means on-road price across the country will not be the same. Petite cars will fall under the 28% GST slab. There will be an extra 1% cess on Petrol and 3% cess on Diesel cars. While prices of almost every car will drop to at least some extent, hybrid cars will get costlier. The price difference inbetween diesel and petrol variants will also increase. Mid-size cars (length greater than four m, engine smaller than 1500cc) such as Maruti Ciaz will cost more or less the same, with only a very petite price cut expected for these cars.
However, while luxury cars will also fall under the 28% tax slab, an extra 15% cess will be imposed on them to ensure the Government does not incur major losses in revenue. Despite the extra cess, premium luxury cars will attract less tax, which means they will get cheaper.
Luxury cars will get cheaper
The Finance Minister has stated that the maximum tax levied will be 40%. In a bid to shove electrified vehicles, the Government has ensured they fall under the lowest tax bracket of 12%. However, rather remarkably, hybrid vehicles have been kept in the highest bracket (28% + 15%). This is a big setback for manufacturers in India who have been planning big investments towards the introduction of energy-efficient hybrid vehicles. Also, under the old tax structure, various states levied extra taxes on vehicles (eg. Octroi in Maharashtra). With the introduction of GST, these taxes will not be applicable, which means the overall percentage switch in prices of cars will vary from state to state.
No benefits for Hybrid cars under GST Bill
Puny Cars
Mostly, petite cars will get cheaper by a slight extent. The decrease in prices of petrol and diesel cars could vary. Also, from our calculations, it’s clear that states where Octroi is not applicable could see petite cars selling for only a slightly lower price after GST. However, the switch in price will be slightly more significant in states where people have been paying Octroi.
Medium Size Cars
This particular segment will not see much switch in prices. The overall tax incidence on cars such as the Ciaz and City will remain almost the same. However, as is presently the case, the Ciaz diesel thanks to the SHVS mild hybrid tech benefits from a lower VAT rate in Delhi. Under the current GST bill proposed by the Government, hybrids will be taxed the same as normal petrol/diesel cars. Unless there are revisions before GST’s implementation in July, the price of Maruti Ciaz diesel is likely to go up. Cars like the Honda City, however, are likely to cost slightly less. Also See- Post-GST Price of Maruti Ciaz | Post-GST Price of Honda City
Luxury Cars/SUVs
Luxury cars and medium and full-size SUVs will witness a definite drop in prices. In fact, manufacturers like Mercedes-Benz, Audi, BMW and Jaguar have already commenced passing benefits of GST on to customers. But this reduction is applicable only on models that are manufactured in India and not on CBUs. SUVs such as the Hyundai Creta and Tata Hexa will see a drop in prices thanks to a lower overall tax of 43% from 44.50% earlier.
Is It Better to Buy a Car After GST?
The implementation of GST will affect each segment differently. Petite cars will get cheaper by a slight margin. The effect on the prices of mid-segment cars such as the City will be negligible. The Maruti Ciaz Diesel, which is a mild hybrid, is likely to cost more now. However, luxury cars and SUVs will get cheaper, while the fattest beneficiary will be hybrid vehicles. So, yes, you should buy a car after GST in case you were planning to buy a luxury car, SUV or a Hybrid. Most mass market cars, however, will not get indeed cheaper after the introduction of GST. Also, cost of spares and servicing is set to go up post the introduction of GST.
GST Affect Car Price, Cars Get Cheaper After GST, GST Influence on Cars
How GST Affects Car Prices – Revised Price Lists Inwards
GST is perhaps the most significant economic tax reform in latest times. With the Goods and Services Tax bill, the Government aims to create a uniform tax structure across the country. Automobile manufacturers are divided over the implications of GST on car and bike prices. The implementation of GST will affect each segment differently. Most buyers are presently facing a similar dilemma – “Should I buy car after GST?” Many of you might also be wondering – “How will GST Affect Car Price?”. Let’s take a look at how car prices might be affected following the implementation of GST. We will attempt to reaction all these questions in this post here. We have also listed out Maruti Car Prices after GST. Post-GST prices of all popular manufacturers and cars will be added in due course of time.
GST Influence – GST Effect on Car Prices
Maruti Car Prices After GST
Maruti Suzuki, which has been India’s largest selling carmaker since time immemorial, has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki models have come down by upto 3%. The rate of reduction varies across locations depending on the VAT rates applicable prior to GST. However, owing to withdrawal of tax concessions on mild hybrid vehicles, prices of the Ciaz Diesel and Ertiga Diesel have gone up by over Rs one lakh. The fresh prices have been effective from July 1, 2017.
Hyundai India
Hyundai Motor India Limited, the country’s 2nd largest car manufacturer and the largest passenger car exporter has determined to pass on the GST benefit on vehicles to its customers. The rate of reduction varies from state to state across the car range depending on the earlier VAT rates. The price reduction will be upto Five.9% Ex-showroom Delhi.
Honda Cars India
Honda Cars India is suggesting a price cut of Rs 12,279 on the Brio and Rs 14,825 on the Amaze. Even the Jazz has got a price cut of Rs Ten,031. The BRV gets a discount of Rs 30,387 and the City of upto Rs 30,387.
Toyota Car Prices after GST
Mahindra
Popular UV manufacturer Mahindra has also given sizeable price cuts on most of its vehicles. On an average, prices are down by toughly 6.9 percent.
Ford India
The very loveable Endeavour is now cheaper by upto Rs three lakh!
Nissan India
Nissan Motor India Pvt. Ltd. announced that it will pass on the benefits of the GST (Goods and Services Tax) to its customers pan India. Ex-showroom prices of the company’s products have been diminished by an average of 3% depending on city and model specification.
Arun Malhotra, managing director, Nissan India Private Ltd. said, “The implementation of the GST is a positive budge for both automobile manufacturers and customers. We are blessed to pass on the benefits to our customers for a more attractive value proposition.”
Renault India Prices after GST
Luxury Cars
Manufacturers like Audi, Mercedes-Benz, BMW and Jaguar Land Rover India have diminished prices by good extents. Mercedes claims an average price drop of 4% on the ex-showroom price of its models. Audi has diminished prices of its cars by upto Rs ten lakh. BMW is suggesting benefits of upto 12% on ex-showroom prices of its cars. These benefits include advantages due to GST, a diminished rate of interest of 7.9%, free one year insurance and free service coupons for three years. Jaguar Land Rover India has also determined to pass on benefits of up to 12% to buyers.
Mercedes India Prices after GST
BMW India Prices after GST
Audi India Prices after GST
Jaguar India Prices After GST
Mr. Vikram Pawah, President of BMW Group India said “BMW Group India welcomes the implementation of Goods and Service Tax (GST) in India. We strongly believe that GST will strengthen and foster growth in the country and benefit consumers at large. BMW is the fastest to suggest preponed GST benefits to our customers much before the roll-out of GST itself. We are certain that our customers and prospects will love their Sheer Driving Pleasure with value enhanced benefits such as a lower rate of interest, assured buyback and complementary service and insurance in addition to the GST benefits.”
How Cars Cost Less After GST?
Since GST proposes a more unified tax structure, car makers will be able to charge a uniform price across the country. Which means ex-showroom prices of vehicles across India will be the same. However, GST does not subsume taxes such as road tax, which varies across states. This means on-road price across the country will not be the same. Petite cars will fall under the 28% GST slab. There will be an extra 1% cess on Petrol and 3% cess on Diesel cars. While prices of almost every car will drop to at least some extent, hybrid cars will get costlier. The price difference inbetween diesel and petrol variants will also increase. Mid-size cars (length greater than four m, engine smaller than 1500cc) such as Maruti Ciaz will cost more or less the same, with only a very petite price cut expected for these cars.
However, while luxury cars will also fall under the 28% tax slab, an extra 15% cess will be imposed on them to ensure the Government does not incur major losses in revenue. Despite the extra cess, premium luxury cars will attract less tax, which means they will get cheaper.
Luxury cars will get cheaper
The Finance Minister has stated that the maximum tax levied will be 40%. In a bid to shove electrified vehicles, the Government has ensured they fall under the lowest tax bracket of 12%. However, rather remarkably, hybrid vehicles have been kept in the highest bracket (28% + 15%). This is a big setback for manufacturers in India who have been planning big investments towards the introduction of energy-efficient hybrid vehicles. Also, under the old tax structure, various states levied extra taxes on vehicles (eg. Octroi in Maharashtra). With the introduction of GST, these taxes will not be applicable, which means the overall percentage switch in prices of cars will vary from state to state.
No benefits for Hybrid cars under GST Bill
Puny Cars
Mostly, petite cars will get cheaper by a slight extent. The decrease in prices of petrol and diesel cars could vary. Also, from our calculations, it’s clear that states where Octroi is not applicable could see petite cars selling for only a slightly lower price after GST. However, the switch in price will be slightly more significant in states where people have been paying Octroi.
Medium Size Cars
This particular segment will not see much switch in prices. The overall tax incidence on cars such as the Ciaz and City will remain almost the same. However, as is presently the case, the Ciaz diesel thanks to the SHVS mild hybrid tech benefits from a lower VAT rate in Delhi. Under the current GST bill proposed by the Government, hybrids will be taxed the same as normal petrol/diesel cars. Unless there are revisions before GST’s implementation in July, the price of Maruti Ciaz diesel is likely to go up. Cars like the Honda City, however, are likely to cost slightly less. Also See- Post-GST Price of Maruti Ciaz | Post-GST Price of Honda City
Luxury Cars/SUVs
Luxury cars and medium and full-size SUVs will witness a definite drop in prices. In fact, manufacturers like Mercedes-Benz, Audi, BMW and Jaguar have already commenced passing benefits of GST on to customers. But this reduction is applicable only on models that are manufactured in India and not on CBUs. SUVs such as the Hyundai Creta and Tata Hexa will see a drop in prices thanks to a lower overall tax of 43% from 44.50% earlier.
Is It Better to Buy a Car After GST?
The implementation of GST will affect each segment differently. Petite cars will get cheaper by a slight margin. The effect on the prices of mid-segment cars such as the City will be negligible. The Maruti Ciaz Diesel, which is a mild hybrid, is likely to cost more now. However, luxury cars and SUVs will get cheaper, while the fattest beneficiary will be hybrid vehicles. So, yes, you should buy a car after GST in case you were planning to buy a luxury car, SUV or a Hybrid. Most mass market cars, however, will not get indeed cheaper after the introduction of GST. Also, cost of spares and servicing is set to go up post the introduction of GST.
GST Affect Car Price, Cars Get Cheaper After GST, GST Influence on Cars
How GST Affects Car Prices – Revised Price Lists Inwards
GST is perhaps the most significant economic tax reform in latest times. With the Goods and Services Tax bill, the Government aims to create a uniform tax structure across the country. Automobile manufacturers are divided over the implications of GST on car and bike prices. The implementation of GST will affect each segment differently. Most buyers are presently facing a similar dilemma – “Should I buy car after GST?” Many of you might also be wondering – “How will GST Affect Car Price?”. Let’s take a look at how car prices might be affected following the implementation of GST. We will attempt to response all these questions in this post here. We have also listed out Maruti Car Prices after GST. Post-GST prices of all popular manufacturers and cars will be added in due course of time.
GST Influence – GST Effect on Car Prices
Maruti Car Prices After GST
Maruti Suzuki, which has been India’s largest selling carmaker since time immemorial, has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki models have come down by upto 3%. The rate of reduction varies across locations depending on the VAT rates applicable prior to GST. However, owing to withdrawal of tax concessions on mild hybrid vehicles, prices of the Ciaz Diesel and Ertiga Diesel have gone up by over Rs one lakh. The fresh prices have been effective from July 1, 2017.
Hyundai India
Hyundai Motor India Limited, the country’s 2nd largest car manufacturer and the largest passenger car exporter has determined to pass on the GST benefit on vehicles to its customers. The rate of reduction varies from state to state across the car range depending on the earlier VAT rates. The price reduction will be upto Five.9% Ex-showroom Delhi.
Honda Cars India
Honda Cars India is suggesting a price cut of Rs 12,279 on the Brio and Rs 14,825 on the Amaze. Even the Jazz has got a price cut of Rs Ten,031. The BRV gets a discount of Rs 30,387 and the City of upto Rs 30,387.
Toyota Car Prices after GST
Mahindra
Popular UV manufacturer Mahindra has also given sizeable price cuts on most of its vehicles. On an average, prices are down by harshly 6.9 percent.
Ford India
The very loveable Endeavour is now cheaper by upto Rs three lakh!
Nissan India
Nissan Motor India Pvt. Ltd. announced that it will pass on the benefits of the GST (Goods and Services Tax) to its customers pan India. Ex-showroom prices of the company’s products have been diminished by an average of 3% depending on city and model specification.
Arun Malhotra, managing director, Nissan India Private Ltd. said, “The implementation of the GST is a positive stir for both automobile manufacturers and customers. We are blessed to pass on the benefits to our customers for a more attractive value proposition.”
Renault India Prices after GST
Luxury Cars
Manufacturers like Audi, Mercedes-Benz, BMW and Jaguar Land Rover India have diminished prices by superb extents. Mercedes claims an average price drop of 4% on the ex-showroom price of its models. Audi has diminished prices of its cars by upto Rs ten lakh. BMW is suggesting benefits of upto 12% on ex-showroom prices of its cars. These benefits include advantages due to GST, a diminished rate of interest of 7.9%, free one year insurance and free service coupons for three years. Jaguar Land Rover India has also determined to pass on benefits of up to 12% to buyers.
Mercedes India Prices after GST
BMW India Prices after GST
Audi India Prices after GST
Jaguar India Prices After GST
Mr. Vikram Pawah, President of BMW Group India said “BMW Group India welcomes the implementation of Goods and Service Tax (GST) in India. We strongly believe that GST will strengthen and foster growth in the country and benefit consumers at large. BMW is the fastest to suggest preponed GST benefits to our customers much before the roll-out of GST itself. We are certain that our customers and prospects will love their Sheer Driving Pleasure with value enhanced benefits such as a lower rate of interest, assured buyback and complementary service and insurance in addition to the GST benefits.”
How Cars Cost Less After GST?
Since GST proposes a more unified tax structure, car makers will be able to charge a uniform price across the country. Which means ex-showroom prices of vehicles across India will be the same. However, GST does not subsume taxes such as road tax, which varies across states. This means on-road price across the country will not be the same. Puny cars will fall under the 28% GST slab. There will be an extra 1% cess on Petrol and 3% cess on Diesel cars. While prices of almost every car will drop to at least some extent, hybrid cars will get costlier. The price difference inbetween diesel and petrol variants will also increase. Mid-size cars (length greater than four m, engine smaller than 1500cc) such as Maruti Ciaz will cost more or less the same, with only a very petite price cut expected for these cars.
However, while luxury cars will also fall under the 28% tax slab, an extra 15% cess will be imposed on them to ensure the Government does not incur major losses in revenue. Despite the extra cess, premium luxury cars will attract less tax, which means they will get cheaper.
Luxury cars will get cheaper
The Finance Minister has stated that the maximum tax levied will be 40%. In a bid to shove electrical vehicles, the Government has ensured they fall under the lowest tax bracket of 12%. However, rather remarkably, hybrid vehicles have been kept in the highest bracket (28% + 15%). This is a big setback for manufacturers in India who have been planning big investments towards the introduction of energy-efficient hybrid vehicles. Also, under the old tax structure, various states levied extra taxes on vehicles (eg. Octroi in Maharashtra). With the introduction of GST, these taxes will not be applicable, which means the overall percentage switch in prices of cars will vary from state to state.
No benefits for Hybrid cars under GST Bill
Puny Cars
Mostly, petite cars will get cheaper by a slight extent. The decrease in prices of petrol and diesel cars could vary. Also, from our calculations, it’s clear that states where Octroi is not applicable could see puny cars selling for only a slightly lower price after GST. However, the switch in price will be slightly more significant in states where people have been paying Octroi.
Medium Size Cars
This particular segment will not see much switch in prices. The overall tax incidence on cars such as the Ciaz and City will remain almost the same. However, as is presently the case, the Ciaz diesel thanks to the SHVS mild hybrid tech benefits from a lower VAT rate in Delhi. Under the current GST bill proposed by the Government, hybrids will be taxed the same as normal petrol/diesel cars. Unless there are revisions before GST’s implementation in July, the price of Maruti Ciaz diesel is likely to go up. Cars like the Honda City, however, are likely to cost slightly less. Also See- Post-GST Price of Maruti Ciaz | Post-GST Price of Honda City
Luxury Cars/SUVs
Luxury cars and medium and full-size SUVs will witness a definite drop in prices. In fact, manufacturers like Mercedes-Benz, Audi, BMW and Jaguar have already began passing benefits of GST on to customers. But this reduction is applicable only on models that are manufactured in India and not on CBUs. SUVs such as the Hyundai Creta and Tata Hexa will see a drop in prices thanks to a lower overall tax of 43% from 44.50% earlier.
Is It Better to Buy a Car After GST?
The implementation of GST will affect each segment differently. Puny cars will get cheaper by a slight margin. The effect on the prices of mid-segment cars such as the City will be negligible. The Maruti Ciaz Diesel, which is a mild hybrid, is likely to cost more now. However, luxury cars and SUVs will get cheaper, while the largest beneficiary will be hybrid vehicles. So, yes, you should buy a car after GST in case you were planning to buy a luxury car, SUV or a Hybrid. Most mass market cars, however, will not get truly cheaper after the introduction of GST. Also, cost of spares and servicing is set to go up post the introduction of GST.
GST Affect Car Price, Cars Get Cheaper After GST, GST Influence on Cars
How GST Affects Car Prices – Revised Price Lists Inwards
GST is perhaps the most significant economic tax reform in latest times. With the Goods and Services Tax bill, the Government aims to create a uniform tax structure across the country. Automobile manufacturers are divided over the implications of GST on car and bike prices. The implementation of GST will affect each segment differently. Most buyers are presently facing a similar dilemma – “Should I buy car after GST?” Many of you might also be wondering – “How will GST Affect Car Price?”. Let’s take a look at how car prices might be affected following the implementation of GST. We will attempt to response all these questions in this post here. We have also listed out Maruti Car Prices after GST. Post-GST prices of all popular manufacturers and cars will be added in due course of time.
GST Influence – GST Effect on Car Prices
Maruti Car Prices After GST
Maruti Suzuki, which has been India’s largest selling carmaker since time immemorial, has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki models have come down by upto 3%. The rate of reduction varies across locations depending on the VAT rates applicable prior to GST. However, owing to withdrawal of tax concessions on mild hybrid vehicles, prices of the Ciaz Diesel and Ertiga Diesel have gone up by over Rs one lakh. The fresh prices have been effective from July 1, 2017.
Hyundai India
Hyundai Motor India Limited, the country’s 2nd largest car manufacturer and the largest passenger car exporter has determined to pass on the GST benefit on vehicles to its customers. The rate of reduction varies from state to state across the car range depending on the earlier VAT rates. The price reduction will be upto Five.9% Ex-showroom Delhi.
Honda Cars India
Honda Cars India is suggesting a price cut of Rs 12,279 on the Brio and Rs 14,825 on the Amaze. Even the Jazz has got a price cut of Rs Ten,031. The BRV gets a discount of Rs 30,387 and the City of upto Rs 30,387.
Toyota Car Prices after GST
Mahindra
Popular UV manufacturer Mahindra has also given sizeable price cuts on most of its vehicles. On an average, prices are down by harshly 6.9 percent.
Ford India
The very loveable Endeavour is now cheaper by upto Rs three lakh!
Nissan India
Nissan Motor India Pvt. Ltd. announced that it will pass on the benefits of the GST (Goods and Services Tax) to its customers pan India. Ex-showroom prices of the company’s products have been diminished by an average of 3% depending on city and model specification.
Arun Malhotra, managing director, Nissan India Private Ltd. said, “The implementation of the GST is a positive stir for both automobile manufacturers and customers. We are blessed to pass on the benefits to our customers for a more attractive value proposition.”
Renault India Prices after GST
Luxury Cars
Manufacturers like Audi, Mercedes-Benz, BMW and Jaguar Land Rover India have diminished prices by superb extents. Mercedes claims an average price drop of 4% on the ex-showroom price of its models. Audi has diminished prices of its cars by upto Rs ten lakh. BMW is suggesting benefits of upto 12% on ex-showroom prices of its cars. These benefits include advantages due to GST, a diminished rate of interest of 7.9%, free one year insurance and free service coupons for three years. Jaguar Land Rover India has also determined to pass on benefits of up to 12% to buyers.
Mercedes India Prices after GST
BMW India Prices after GST
Audi India Prices after GST
Jaguar India Prices After GST
Mr. Vikram Pawah, President of BMW Group India said “BMW Group India welcomes the implementation of Goods and Service Tax (GST) in India. We strongly believe that GST will strengthen and foster growth in the country and benefit consumers at large. BMW is the fastest to suggest preponed GST benefits to our customers much before the roll-out of GST itself. We are certain that our customers and prospects will love their Sheer Driving Pleasure with value enhanced benefits such as a lower rate of interest, assured buyback and complementary service and insurance in addition to the GST benefits.”
How Cars Cost Less After GST?
Since GST proposes a more unified tax structure, car makers will be able to charge a uniform price across the country. Which means ex-showroom prices of vehicles across India will be the same. However, GST does not subsume taxes such as road tax, which varies across states. This means on-road price across the country will not be the same. Puny cars will fall under the 28% GST slab. There will be an extra 1% cess on Petrol and 3% cess on Diesel cars. While prices of almost every car will drop to at least some extent, hybrid cars will get costlier. The price difference inbetween diesel and petrol variants will also increase. Mid-size cars (length greater than four m, engine smaller than 1500cc) such as Maruti Ciaz will cost more or less the same, with only a very puny price cut expected for these cars.
However, while luxury cars will also fall under the 28% tax slab, an extra 15% cess will be imposed on them to ensure the Government does not incur major losses in revenue. Despite the extra cess, premium luxury cars will attract less tax, which means they will get cheaper.
Luxury cars will get cheaper
The Finance Minister has stated that the maximum tax levied will be 40%. In a bid to thrust electrical vehicles, the Government has ensured they fall under the lowest tax bracket of 12%. However, rather remarkably, hybrid vehicles have been kept in the highest bracket (28% + 15%). This is a big setback for manufacturers in India who have been planning big investments towards the introduction of energy-efficient hybrid vehicles. Also, under the old tax structure, various states levied extra taxes on vehicles (eg. Octroi in Maharashtra). With the introduction of GST, these taxes will not be applicable, which means the overall percentage switch in prices of cars will vary from state to state.
No benefits for Hybrid cars under GST Bill
Puny Cars
Mostly, petite cars will get cheaper by a slight extent. The decrease in prices of petrol and diesel cars could vary. Also, from our calculations, it’s clear that states where Octroi is not applicable could see petite cars selling for only a slightly lower price after GST. However, the switch in price will be slightly more significant in states where people have been paying Octroi.
Medium Size Cars
This particular segment will not see much switch in prices. The overall tax incidence on cars such as the Ciaz and City will remain almost the same. However, as is presently the case, the Ciaz diesel thanks to the SHVS mild hybrid tech benefits from a lower VAT rate in Delhi. Under the current GST bill proposed by the Government, hybrids will be taxed the same as normal petrol/diesel cars. Unless there are revisions before GST’s implementation in July, the price of Maruti Ciaz diesel is likely to go up. Cars like the Honda City, however, are likely to cost slightly less. Also See- Post-GST Price of Maruti Ciaz | Post-GST Price of Honda City
Luxury Cars/SUVs
Luxury cars and medium and full-size SUVs will witness a definite drop in prices. In fact, manufacturers like Mercedes-Benz, Audi, BMW and Jaguar have already began passing benefits of GST on to customers. But this reduction is applicable only on models that are manufactured in India and not on CBUs. SUVs such as the Hyundai Creta and Tata Hexa will see a drop in prices thanks to a lower overall tax of 43% from 44.50% earlier.
Is It Better to Buy a Car After GST?
The implementation of GST will affect each segment differently. Puny cars will get cheaper by a slight margin. The effect on the prices of mid-segment cars such as the City will be negligible. The Maruti Ciaz Diesel, which is a mild hybrid, is likely to cost more now. However, luxury cars and SUVs will get cheaper, while the fattest beneficiary will be hybrid vehicles. So, yes, you should buy a car after GST in case you were planning to buy a luxury car, SUV or a Hybrid. Most mass market cars, however, will not get truly cheaper after the introduction of GST. Also, cost of spares and servicing is set to go up post the introduction of GST.