GST Rates: If you’re buying a car or bike, read this very first
The GST Council, in its 14th meeting has finalised the GST across all categories of goods including automobiles. In addition to the base rate, the Government has also proposed to levy a cess of 1% and 3% on petite cars with petrol and diesel engines, respectively.
The base GST rates for the automobile segment have been set at 28%, which is broadly in line with overall indirect tax rates at present.
«The rates are as per the expectations of the industry and almost all segments of the industry have benefitted by way of a diminished overall tax cargo in varying degree. This will pave the way for stimulating request and strengthening the automotive market in the country, paving the way for meeting the vision laid down in the Automotive Mission Plan 2016-26», said Vinod Dasari, President, SIAM.
ALSO READ
“Considering GST will subsume infrastructure-cess presently levied on domestic passenger vehicle industry, proposed tax rate for puny car is likely to be price neutral. Thicker sedans (engine size > 1,500cc and length >Four,000 cm) and SUVs (engine size > 1,500cc and ground clearance > 170mm) may see lower taxation and eventually reduction in vehicle prices, despite 15% cess above the base GST rate of 28%,” ICRA said.
Vaibhav Agrawal, Head of Research and ARQ, Angel Broking said, “While GST council has announced 28% GST on passenger vehicles, there is yet no clarity if there will be different tax slabs for different sized cars. Assuming 28% tax rate, puny cars will become expensive by about 2-3% while luxury cars will become cheaper by the same extent which could be counter intuitive.”
ALSO READ
Subrata Ray, Senior Group Vice President – ICRA Limited, said, “the prices of relatively price sensitive puny cars may increase marginally post GST, while OEMs would pass on the benefit of lower taxes on Thicker Vehicles and SUVs to customers.”
He further mentioned that GST rates are likely to be almost neutral for the Commercial Vehicle and Two Wheeler and would marginally increase for Three Wheelers as it didn`t attract extra NCCD earlier.
There will also be an extra cess levied on certain automobile categories, which could prove to be costly for the industry as well as people who are looking to buy the car after the implementation of GST.
Petite cars could take a hit as the GST Council has determined to levy an extra cess of 1% on puny petrol cars and 3% on puny diesel cars, apart from the 28% GST rate.
Luxury cars will get much more costlier as they face an extra 15% cess, besides the 28% GST.
In addition, bikes with an engine capacity of over 350cc will be seen as luxury goods and see a fresh cess of 3%.
The extra cess the government will impose as it attempted to recover the revenue loss due to implementation of GST.
This is expected to have a big influence on the automobile industry and could result in price hikes, which could have an influence on sales in the near term. The most affected would be puny cars as these GST rates are a significant hike in taxes in comparison to the taxation policy they are following presently.
Presently, puny cars have to pay an excise duty of 12.5% and Value Added Tax (VAT) of another 12.5-14.5%, according to an Economic Times report.
So does this mean bad news for the puny car segment?
According to one automobile analyst we spoke on the condition of anonymity said that he did not think that this will have much of an influence on the request for petite cars. «A few percent increase in the tax will not have much difference in puny car sales. Customers might be in a little disadvantage as the puny car prices will increase by a bit, but I don’t think that will influence their buying decision.»
He further says that in terms of the extra cess, he says that will not have much of an influence as some of the vehicles have been already paying Green Cess. In fact, prices of mid-segment cars such as SUVs and sedans will become cheaper, he said.
For bikes, he said that Royal Enfield sales will not be impacted much as the highest selling bikes of the company are the 350cc. It will only be the Classic 500cc and some other which are over 350cc engines which will incur the extra cess.
When asked whether he expects to see higher sales in rest of May and June as result of GST implementation in July, he says that a puny increase in the prices are not going to see much of an influence on request.
Another automobile analyst too said that the GST rates of 28% were expected by the automobile industry and that even with the extra cess it is very close to the current taxation rates.
«Even for petite cars the GST rate will come to the similar to the tax rates now. There may be a difference of a 1-2% but this will not have any significant influence on request for the automobile industry,» he said.
“If we assume that the current tax slabs will not go through any revision, we don’t see any material difference on companies as these prices will be passed on to the consumers and request will not be hit severely by 2-3% price increase,” Agrawal of Angel Broking said.
GST Rates: If you – re buying a car or bike, read this very first, Latest News – Updates at Daily News – Analysis
GST Rates: If you’re buying a car or bike, read this very first
Collin Furtado | Updated: May Nineteen, 2017, 09:00 PM IST, zeebiz.com
The GST Council, in its 14th meeting has finalised the GST across all categories of goods including automobiles. In addition to the base rate, the Government has also proposed to levy a cess of 1% and 3% on puny cars with petrol and diesel engines, respectively.
The base GST rates for the automobile segment have been set at 28%, which is broadly in line with overall indirect tax rates at present.
«The rates are as per the expectations of the industry and almost all segments of the industry have benefitted by way of a diminished overall tax cargo in varying degree. This will pave the way for stimulating request and strengthening the automotive market in the country, paving the way for meeting the vision laid down in the Automotive Mission Plan 2016-26», said Vinod Dasari, President, SIAM.
Must Read
GST Rates: Decoding the influence on your monthly household budget
“Considering GST will subsume infrastructure-cess presently levied on domestic passenger vehicle industry, proposed tax rate for puny car is likely to be price neutral. Thicker sedans (engine size > 1,500cc and length >Four,000 cm) and SUVs (engine size > 1,500cc and ground clearance > 170mm) may see lower taxation and eventually reduction in vehicle prices, despite 15% cess above the base GST rate of 28%,” ICRA said.
Vaibhav Agrawal, Head of Research and ARQ, Angel Broking said, “While GST council has announced 28% GST on passenger vehicles, there is yet no clarity if there will be different tax slabs for different sized cars. Assuming 28% tax rate, puny cars will become expensive by about 2-3% while luxury cars will become cheaper by the same extent which could be counter intuitive.”
Must Read
Fresh GST Rates: All you need to know
Subrata Ray, Senior Group Vice President – ICRA Limited, said, “the prices of relatively price sensitive petite cars may increase marginally post GST, while OEMs would pass on the benefit of lower taxes on Fatter Vehicles and SUVs to customers.”
He further mentioned that GST rates are likely to be almost neutral for the Commercial Vehicle and Two Wheeler and would marginally increase for Three Wheelers as it didn`t attract extra NCCD earlier.
There will also be an extra cess levied on certain automobile categories, which could prove to be costly for the industry as well as people who are looking to buy the car after the implementation of GST.
Puny cars could take a hit as the GST Council has determined to levy an extra cess of 1% on petite petrol cars and 3% on puny diesel cars, apart from the 28% GST rate.
Luxury cars will get much more costlier as they face an extra 15% cess, besides the 28% GST.
In addition, bikes with an engine capacity of over 350cc will be seen as luxury goods and see a fresh cess of 3%.
The extra cess the government will impose as it attempted to recover the revenue loss due to implementation of GST.
This is expected to have a big influence on the automobile industry and could result in price hikes, which could have an influence on sales in the near term. The most affected would be petite cars as these GST rates are a significant hike in taxes in comparison to the taxation policy they are following presently.
Presently, petite cars have to pay an excise duty of 12.5% and Value Added Tax (VAT) of another 12.5-14.5%, according to an Economic Times report.
So does this mean bad news for the puny car segment?
According to one automobile analyst we spoke on the condition of anonymity said that he did not think that this will have much of an influence on the request for puny cars. «A few percent increase in the tax will not have much difference in petite car sales. Customers might be in a little disadvantage as the puny car prices will increase by a bit, but I don’t think that will influence their buying decision.»
He further says that in terms of the extra cess, he says that will not have much of an influence as some of the vehicles have been already paying Green Cess. In fact, prices of mid-segment cars such as SUVs and sedans will become cheaper, he said.
For bikes, he said that Royal Enfield sales will not be impacted much as the highest selling bikes of the company are the 350cc. It will only be the Classic 500cc and some other which are over 350cc engines which will incur the extra cess.
When asked whether he expects to see higher sales in rest of May and June as result of GST implementation in July, he says that a puny increase in the prices are not going to see much of an influence on request.
Another automobile analyst too said that the GST rates of 28% were expected by the automobile industry and that even with the extra cess it is very close to the current taxation rates.
«Even for petite cars the GST rate will come to the similar to the tax rates now. There may be a difference of a 1-2% but this will not have any significant influence on request for the automobile industry,» he said.
“If we assume that the current tax slabs will not fall under any revision, we don’t see any material difference on companies as these prices will be passed on to the consumers and request will not be hit severely by 2-3% price increase,” Agrawal of Angel Broking said.
GST Rates: If you – re buying a car or bike, read this very first, Latest News – Updates at Daily News – Analysis
GST Rates: If you’re buying a car or bike, read this very first
The GST Council, in its 14th meeting has finalised the GST across all categories of goods including automobiles. In addition to the base rate, the Government has also proposed to levy a cess of 1% and 3% on petite cars with petrol and diesel engines, respectively.
The base GST rates for the automobile segment have been set at 28%, which is broadly in line with overall indirect tax rates at present.
«The rates are as per the expectations of the industry and almost all segments of the industry have benefitted by way of a diminished overall tax cargo in varying degree. This will pave the way for stimulating request and strengthening the automotive market in the country, paving the way for meeting the vision laid down in the Automotive Mission Plan 2016-26», said Vinod Dasari, President, SIAM.
ALSO READ
“Considering GST will subsume infrastructure-cess presently levied on domestic passenger vehicle industry, proposed tax rate for petite car is likely to be price neutral. Fatter sedans (engine size > 1,500cc and length >Four,000 cm) and SUVs (engine size > 1,500cc and ground clearance > 170mm) may see lower taxation and eventually reduction in vehicle prices, despite 15% cess above the base GST rate of 28%,” ICRA said.
Vaibhav Agrawal, Head of Research and ARQ, Angel Broking said, “While GST council has announced 28% GST on passenger vehicles, there is yet no clarity if there will be different tax slabs for different sized cars. Assuming 28% tax rate, petite cars will become expensive by about 2-3% while luxury cars will become cheaper by the same extent which could be counter intuitive.”
ALSO READ
Subrata Ray, Senior Group Vice President – ICRA Limited, said, “the prices of relatively price sensitive puny cars may increase marginally post GST, while OEMs would pass on the benefit of lower taxes on Thicker Vehicles and SUVs to customers.”
He further mentioned that GST rates are likely to be almost neutral for the Commercial Vehicle and Two Wheeler and would marginally increase for Three Wheelers as it didn`t attract extra NCCD earlier.
There will also be an extra cess levied on certain automobile categories, which could prove to be costly for the industry as well as people who are looking to buy the car after the implementation of GST.
Petite cars could take a hit as the GST Council has determined to levy an extra cess of 1% on petite petrol cars and 3% on puny diesel cars, apart from the 28% GST rate.
Luxury cars will get much more costlier as they face an extra 15% cess, besides the 28% GST.
In addition, bikes with an engine capacity of over 350cc will be seen as luxury goods and see a fresh cess of 3%.
The extra cess the government will impose as it attempted to recover the revenue loss due to implementation of GST.
This is expected to have a big influence on the automobile industry and could result in price hikes, which could have an influence on sales in the near term. The most affected would be petite cars as these GST rates are a significant hike in taxes in comparison to the taxation policy they are following presently.
Presently, puny cars have to pay an excise duty of 12.5% and Value Added Tax (VAT) of another 12.5-14.5%, according to an Economic Times report.
So does this mean bad news for the petite car segment?
According to one automobile analyst we spoke on the condition of anonymity said that he did not think that this will have much of an influence on the request for puny cars. «A few percent increase in the tax will not have much difference in petite car sales. Customers might be in a little disadvantage as the puny car prices will increase by a bit, but I don’t think that will influence their buying decision.»
He further says that in terms of the extra cess, he says that will not have much of an influence as some of the vehicles have been already paying Green Cess. In fact, prices of mid-segment cars such as SUVs and sedans will become cheaper, he said.
For bikes, he said that Royal Enfield sales will not be impacted much as the highest selling bikes of the company are the 350cc. It will only be the Classic 500cc and some other which are over 350cc engines which will incur the extra cess.
When asked whether he expects to see higher sales in rest of May and June as result of GST implementation in July, he says that a petite increase in the prices are not going to see much of an influence on request.
Another automobile analyst too said that the GST rates of 28% were expected by the automobile industry and that even with the extra cess it is very close to the current taxation rates.
«Even for puny cars the GST rate will come to the similar to the tax rates now. There may be a difference of a 1-2% but this will not have any significant influence on request for the automobile industry,» he said.
“If we assume that the current tax slabs will not go through any revision, we don’t see any material difference on companies as these prices will be passed on to the consumers and request will not be hit severely by 2-3% price increase,” Agrawal of Angel Broking said.
GST Rates: If you – re buying a car or bike, read this very first, Latest News – Updates at Daily News – Analysis
GST Rates: If you’re buying a car or bike, read this very first
The GST Council, in its 14th meeting has finalised the GST across all categories of goods including automobiles. In addition to the base rate, the Government has also proposed to levy a cess of 1% and 3% on puny cars with petrol and diesel engines, respectively.
The base GST rates for the automobile segment have been set at 28%, which is broadly in line with overall indirect tax rates at present.
«The rates are as per the expectations of the industry and almost all segments of the industry have benefitted by way of a diminished overall tax cargo in varying degree. This will pave the way for stimulating request and strengthening the automotive market in the country, paving the way for meeting the vision laid down in the Automotive Mission Plan 2016-26», said Vinod Dasari, President, SIAM.
ALSO READ
“Considering GST will subsume infrastructure-cess presently levied on domestic passenger vehicle industry, proposed tax rate for petite car is likely to be price neutral. Fatter sedans (engine size > 1,500cc and length >Four,000 cm) and SUVs (engine size > 1,500cc and ground clearance > 170mm) may see lower taxation and eventually reduction in vehicle prices, despite 15% cess above the base GST rate of 28%,” ICRA said.
Vaibhav Agrawal, Head of Research and ARQ, Angel Broking said, “While GST council has announced 28% GST on passenger vehicles, there is yet no clarity if there will be different tax slabs for different sized cars. Assuming 28% tax rate, petite cars will become expensive by about 2-3% while luxury cars will become cheaper by the same extent which could be counter intuitive.”
ALSO READ
Subrata Ray, Senior Group Vice President – ICRA Limited, said, “the prices of relatively price sensitive puny cars may increase marginally post GST, while OEMs would pass on the benefit of lower taxes on Fatter Vehicles and SUVs to customers.”
He further mentioned that GST rates are likely to be almost neutral for the Commercial Vehicle and Two Wheeler and would marginally increase for Three Wheelers as it didn`t attract extra NCCD earlier.
There will also be an extra cess levied on certain automobile categories, which could prove to be costly for the industry as well as people who are looking to buy the car after the implementation of GST.
Puny cars could take a hit as the GST Council has determined to levy an extra cess of 1% on petite petrol cars and 3% on puny diesel cars, apart from the 28% GST rate.
Luxury cars will get much more costlier as they face an extra 15% cess, besides the 28% GST.
In addition, bikes with an engine capacity of over 350cc will be seen as luxury goods and see a fresh cess of 3%.
The extra cess the government will impose as it attempted to recover the revenue loss due to implementation of GST.
This is expected to have a big influence on the automobile industry and could result in price hikes, which could have an influence on sales in the near term. The most affected would be petite cars as these GST rates are a significant hike in taxes in comparison to the taxation policy they are following presently.
Presently, puny cars have to pay an excise duty of 12.5% and Value Added Tax (VAT) of another 12.5-14.5%, according to an Economic Times report.
So does this mean bad news for the petite car segment?
According to one automobile analyst we spoke on the condition of anonymity said that he did not think that this will have much of an influence on the request for petite cars. «A few percent increase in the tax will not have much difference in petite car sales. Customers might be in a little disadvantage as the puny car prices will increase by a bit, but I don’t think that will influence their buying decision.»
He further says that in terms of the extra cess, he says that will not have much of an influence as some of the vehicles have been already paying Green Cess. In fact, prices of mid-segment cars such as SUVs and sedans will become cheaper, he said.
For bikes, he said that Royal Enfield sales will not be impacted much as the highest selling bikes of the company are the 350cc. It will only be the Classic 500cc and some other which are over 350cc engines which will incur the extra cess.
When asked whether he expects to see higher sales in rest of May and June as result of GST implementation in July, he says that a puny increase in the prices are not going to see much of an influence on request.
Another automobile analyst too said that the GST rates of 28% were expected by the automobile industry and that even with the extra cess it is very close to the current taxation rates.
«Even for petite cars the GST rate will come to the similar to the tax rates now. There may be a difference of a 1-2% but this will not have any significant influence on request for the automobile industry,» he said.
“If we assume that the current tax slabs will not go through any revision, we don’t see any material difference on companies as these prices will be passed on to the consumers and request will not be hit severely by 2-3% price increase,” Agrawal of Angel Broking said.
GST Rates: If you – re buying a car or bike, read this very first, Latest News – Updates at Daily News – Analysis
GST Rates: If you’re buying a car or bike, read this very first
Collin Furtado | Updated: May Nineteen, 2017, 09:00 PM IST, zeebiz.com
The GST Council, in its 14th meeting has finalised the GST across all categories of goods including automobiles. In addition to the base rate, the Government has also proposed to levy a cess of 1% and 3% on puny cars with petrol and diesel engines, respectively.
The base GST rates for the automobile segment have been set at 28%, which is broadly in line with overall indirect tax rates at present.
«The rates are as per the expectations of the industry and almost all segments of the industry have benefitted by way of a diminished overall tax cargo in varying degree. This will pave the way for stimulating request and strengthening the automotive market in the country, paving the way for meeting the vision laid down in the Automotive Mission Plan 2016-26», said Vinod Dasari, President, SIAM.
Must Read
GST Rates: Decoding the influence on your monthly household budget
“Considering GST will subsume infrastructure-cess presently levied on domestic passenger vehicle industry, proposed tax rate for petite car is likely to be price neutral. Fatter sedans (engine size > 1,500cc and length >Four,000 cm) and SUVs (engine size > 1,500cc and ground clearance > 170mm) may see lower taxation and eventually reduction in vehicle prices, despite 15% cess above the base GST rate of 28%,” ICRA said.
Vaibhav Agrawal, Head of Research and ARQ, Angel Broking said, “While GST council has announced 28% GST on passenger vehicles, there is yet no clarity if there will be different tax slabs for different sized cars. Assuming 28% tax rate, puny cars will become expensive by about 2-3% while luxury cars will become cheaper by the same extent which could be counter intuitive.”
Must Read
Fresh GST Rates: All you need to know
Subrata Ray, Senior Group Vice President – ICRA Limited, said, “the prices of relatively price sensitive puny cars may increase marginally post GST, while OEMs would pass on the benefit of lower taxes on Thicker Vehicles and SUVs to customers.”
He further mentioned that GST rates are likely to be almost neutral for the Commercial Vehicle and Two Wheeler and would marginally increase for Three Wheelers as it didn`t attract extra NCCD earlier.
There will also be an extra cess levied on certain automobile categories, which could prove to be costly for the industry as well as people who are looking to buy the car after the implementation of GST.
Puny cars could take a hit as the GST Council has determined to levy an extra cess of 1% on puny petrol cars and 3% on petite diesel cars, apart from the 28% GST rate.
Luxury cars will get much more costlier as they face an extra 15% cess, besides the 28% GST.
In addition, bikes with an engine capacity of over 350cc will be seen as luxury goods and see a fresh cess of 3%.
The extra cess the government will impose as it attempted to recover the revenue loss due to implementation of GST.
This is expected to have a big influence on the automobile industry and could result in price hikes, which could have an influence on sales in the near term. The most affected would be petite cars as these GST rates are a significant hike in taxes in comparison to the taxation policy they are following presently.
Presently, puny cars have to pay an excise duty of 12.5% and Value Added Tax (VAT) of another 12.5-14.5%, according to an Economic Times report.
So does this mean bad news for the puny car segment?
According to one automobile analyst we spoke on the condition of anonymity said that he did not think that this will have much of an influence on the request for puny cars. «A few percent increase in the tax will not have much difference in petite car sales. Customers might be in a little disadvantage as the puny car prices will increase by a bit, but I don’t think that will influence their buying decision.»
He further says that in terms of the extra cess, he says that will not have much of an influence as some of the vehicles have been already paying Green Cess. In fact, prices of mid-segment cars such as SUVs and sedans will become cheaper, he said.
For bikes, he said that Royal Enfield sales will not be impacted much as the highest selling bikes of the company are the 350cc. It will only be the Classic 500cc and some other which are over 350cc engines which will incur the extra cess.
When asked whether he expects to see higher sales in rest of May and June as result of GST implementation in July, he says that a puny increase in the prices are not going to see much of an influence on request.
Another automobile analyst too said that the GST rates of 28% were expected by the automobile industry and that even with the extra cess it is very close to the current taxation rates.
«Even for petite cars the GST rate will come to the similar to the tax rates now. There may be a difference of a 1-2% but this will not have any significant influence on request for the automobile industry,» he said.
“If we assume that the current tax slabs will not go through any revision, we don’t see any material difference on companies as these prices will be passed on to the consumers and request will not be hit severely by 2-3% price increase,” Agrawal of Angel Broking said.