Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.

Log in to CarWale

Please enter your password
Forgot password?
Please enter your registered email

Sign up to CarWale

Please enter your name
+91
Please enter your mobile number
Please enter your password
Please enter your password
Ad

Small cars unaffected by GST, SUVs might get cheaper

May 20, 2017, 03:44 PM IST by Omkar Thakur
Small cars unaffected by GST, SUVs might get cheaper

The latest developments indicate that GST might be implemented as scheduled from July onwards. While there is still a little ambiguity about the exact taxation for cars, the picture is a little clearer than before. Since cars have been traditionally classified under luxury items, it might attract the highest GST slab of 28 per cent.

The slabs have not been specified yet and manufacturers have been wanting to push the compact cars (the sub-four metre, less than 1.2-litre petrol and 1.5-litre diesel engine cars) in the 18 per cent slab, the chances seem bleak. Also, in addition to the standard tax slabs, the government has prescribed three slabs for additional cess as well. At 1, 3 and 15 per cent, the slabs will be prescribed on the basis of classification into necessary or luxury items.

For example, the budget cars like the Altos or the Nanos might be classified under the 3 per cent slab while the bigger cars might attract additional cess of 15 per cent. As per the industry estimates, the taxation should range from 31 per cent to 43 per cent as against 26 to almost 50 per cent taxation as per current norms.

This means that the prices of small cars might actually go up by a notch while the bigger cars might actually get a price cut. We should be able to get more clarity closer to the implementation dates. It is said that invalid carriages, cars for the disabled, might be stacked in the 18 per cent slab making cars more affordable for the differently-abled as the current public transport infrastructure is not really disabled-friendly.

The GST rules also back the government’s all-electric target by 2032. Hybrid cars that were used to excise duty sops will now be categorised normally under the 28 per cent slab while electric cars will attract the 12 per cent slab under GST. Also, with no additional cesses to pay, manufacturers will have to ditch their hybrid plans and push for all-electrics.

 
Tags:Maruti Suzuki,Alto 800,Maruti Suzuki Alto 800
Show CommentsHide Comments
Ad

Maruti Suzuki Alto 800 Price in Popular Cities

CityOn-Road Prices
New Delhi₹ 2.86 Lakhs onwards
Hyderabad₹ 3.19 Lakhs onwards
Mumbai₹ 3.18 Lakhs onwards
Chennai₹ 3.21 Lakhs onwards
Kolkata₹ 3.08 Lakhs onwards
Bangalore₹ 3.32 Lakhs onwards
  • Upcoming Cars

Mercedes-Benz V-ClassMercedes-Benz V-Class

24th Jan 2019

75L - ₹ 85L
Mahindra XUV300Mahindra XUV300

14th Feb 2019

8L - ₹ 12L
Audi New Q3Audi New Q3

Feb 2019

33L - ₹ 44L
Audi New A8 LAudi New A8 L

Feb 2019

1.20Cr - ₹ 1.50Cr
Tata 45XTata 45X

Mar 2019

8L - ₹ 10L
All Upcoming Cars
Ask the experts1800 2090 230Mon-Fri (9 AM - 8 PM)
Sat (9 AM - 5:30 PM)
Sun (9 AM - 7 PM)
Toll free

Select your city to avail offers

Currently available only in