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
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
GST Council has proposed a revision in tax slabs for motor vehicles. Now, all cars were taxed at base rate of 28% and levied an additional cess based on factors like dimensions, engine size and ground clearance. The cess slabs of 25%. If this slab is passed, then the maximum rate at which cars could be tax increase from 43% to 53%. Luxury cars will be taxed under the newly proposed highest slab. The GST on luxury cars will be set 53% of the existing 43%. The implementation of GST has some good news for new car buyers.
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