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Impact of GST on car prices


Goods & Service Tax (GST) comes into effect on July 1, 2017 and it will replaces multiple state and central taxes with a single levy, Most buyers are currently facing a similar dilemma – “Should I buy car after GST?” Many of you might also be wondering – “How will GST Affect Car Price?”. Here are some highlights on car prices


classification of cars is carried over (high probability), there will be four broad categories of cars:


1. Small cars – Cars under four-meter length powered by a petrol engine not greater than 1.2-litre or a diesel engine not greater than 1.5-litre by displacement.Tax distribution will be as 28% + 1% or 3% cess


2. Mid-size cars – Cars over four-meter length powered by either a petrol or a diesel engine not greater than 1.5-litre displacement




Tax distribution will be as 28% + 15% cess


3. Luxury cars – Cars over four-meter length powered by either a petrol or a diesel engine that is greater than 1.5-litre displacement

Tax distribution will be as 28% + 15% cess
Following is the tax distribution:




Before GST



After GST

information Source : outlookindia
image courtesy : financial express


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