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GST Cess Hike on Mid Segment, SUV, Luxury Cars. Price Hike due to Revised GST Cess

GST Cess Hike on Mid Segment, SUV, Luxury Cars. Price Hike due to Revised GST Cess

GST Rates on SUV Segment from 43% to 50%, Mid Saloon 43% to 45% and Luxury Segment Car from 43% to 48% . Price Hike of Cars in SUV, Mid, Luxury Segment 

 

GST Impact on SUV, Luxury Car Prices in India

Passenger Car Buying is one sector where there is regime of high taxes. For calculating Prices at Various levels in Pre GST Scenario on Luxury Cars

> Excise Duty (27%) - For calculating Ex-Factory Price
> Infrastructure Tax (4%) - For calculating Ex-Factory Price
> CST Tax & NCCD Duty - For calculating Ex-Factory Price
> VAT Duty (12.5% to 14.5%) - For calculating Ex-showroom Price
> Octroi / Entry Tax (4% to 6%) - Applicable in Certain States
> Road Tax - For calculating On Road Price

GST - Goods and Service Tax has replace and merge Excise Duty, Infrastructure Cess, VAT Duty, CST and NCCD Tax as One Entity called GST. While - Octroi has abolished as GST is a destination based Tax. 

With this GST on Luxury Cars and Mid to High Range SUV Segment stands at 43% as against high tax zone of 50% to 52%. With GST Regime announced - there was a Steep Price Cut with SUV Like Fortuner got price cut of Rs 2.7 Lakh and some high End Range got Price cut of over Rs 10 Lakh

But - Finance Minister has announced a hike in Cess with Category wise Cess Hike on Mid Segment Saloon, Luxury Saloon and SUV Cars with maximum Cess hiked to 50% on SUV Segment.

It means - for a Factory Price of a SUV of Rs 20 Lakh, Rs 10 Lakh will go in Government Kitty as GST Cess.

 

GST Scenario 

Know GST Slabs Paid at Time of Buying Car

Existing GST Rates Rate Classification
Petrol Cars with Engine < 1.2 Litre 28% + 1% Cess = 29% Petrol Cars for Mass Market
 Diesel Cars with Engine < 1.5 Litre 28% + 3% Cess = 31% Diesel Cars for Mass Market
 All other Cars 28% + 15% Cess = 43% All other Cars
     
GST Rates post New Development as on 9th September 2017 Rate Classification
Compact Petrol Cars with Engine < 1.2 Litre 28% + 1% Cess = 29% Compact Petrol Cars under 4 Meter
Compact Diesel Cars with Engine < 1.5 Litre 28% + 3% Cess = 31% Compact Diesel cars with Length < 4 Meter
Hybrid Cars 28% + 15% Cess = 43% Hybrid Cars
Mid Cars with Engine < 1.5 Litre 28% + 17% Cess = 45% Mid Size Saloon Cars with Length > 4 Meter but Engine Smaller than 1.5 Litre (Ground Clearance < 170 mm)
Mid Cars with Engine > 1.5 Litre  28% + 20% Cess = 48% Sedan Cars with Length > 4 Meter and Engine > 1.5 Litre (Ground Clearance < 170 mm)
SUV Segment  28% + 22% Cess = 50% Cars with Length > 4 Meter, SUV Segment (Ground Clearance > 170 mm)

Based on New Slabs

 

GST Rates

In Post GST Regime in July 2017 - the Biggest Beneficiary which was Luxury High End Range Cars 

But with Cess to be revised - Prices will increase by taking away maximum gains which happened after GST. So - if you finding in Mouth-Watering Prices of Cars like - Jeep Compass, Mercedes Benz, Audi, BMW, Jaguar, Landrover or has booked in SUV like Toyota Fortuner, Ford Endeavour, Isuzu MUX 

» Expect Prices of above mentioned SUV to increase by extent of 7% of these SUV Cars

» While Saloon Cars with Engine > 1.5 Litre (but Ground Clearance under 170mm) - Prices will increase by 5%

» Mid Segment Saloon Cars with Engine < 1.5 Litre (but Ground Clearance under 170mm)  - Prices will increase by 2%

With This - Mid Saloon Cars like Honda City, Hyundai Verna, Maruti Ciaz or Mid SUV like Renault Duster, S Cross XUV500, Scorpio or Luxury SUV Toyota Fortuner, Ford Endeavour or other Luxury Cars will be turned expensive

Overall - GST has now turned negative for Automobile Sector

» Automobile Spare Parts, Car Accessories - Prices increased after GST now at 28%

» Car Service Bills, Insurance Premium - Been GST at 18% as against Service Tax of 15% earlier

» Price Hike on Luxury Segment, SUV - The Gains will all be lost as the prices reduced will be reversed leading to sharp increase in prices.

Below will be likely hike in Prices

 

GST Impact on Prices due to Hike in Cess

Models Price Hike
Maruti Baleno, Honda Jazz, WRV, I20, Ford Ecosport, Maruti Brezza or Segment lower cars etc No Price Hike
Maruti Ertiga SHVS Hybrid, Ciaz SHVS Hybrid, Toyota Camry Hybrid, Honda Accord No Price Hike
Maruti Ciaz Petrol, Honda City, Fiat Linea, VW Vento Diesel (Engine < 1.5 Litre) Rs 15K to Rs 20K
Hyundai Verna, Skoda Rapid, VW Vento Petrol (Engine > 1.5 Litre) Rs 35K to Rs 50K
Hyundai Creta, Renault Duster, Nissan Terrano Rs 50K to 90K
Mahindra XUV 500, Tata Hexa, Tata Safari Storme, Toyota Innova Crysta, Jeep Compass Rs 70K to Rs 1.2 Lakh
Skoda Octavia, Skoda Superb, Hyundai Elantra, Toyota Corolla Rs 70K to 1 Lakh
Discover Sport, Range Rover Evoque Rs 2 Lakh to 2.5 Lakh
Isuzu MUX, Toyota Fortuner, Ford Endevaour, VW Tiguan, Audi Q3, BMW X1 Rs 1.25 Lakh to Rs 2 Lakh
BMW 3 Series, Audi A4, Benz C Class, E Class Rs 1.5 Lakh to Rs 2.5 Lakh
Audi Q7 Rs 4 Lakh

 

Impact of GST - Manufacturer Wise

» Biggest Gainer is Maruti Suzuki as it will have Marginal Impact of 2% only on Maruti Ertiga Petrol, Ciaz Petrol and S Cross Prices. Rest no Model Impacted

» Hyundai will witness in 5% Increase in Prices of Verna, Elantra and 7% Price Hike on Creta and Tucson

» Honda Cars India will also see a marginal 2% Hike on Honda City and Honda BRV Prices

» Mahindra will witness a sharp hike of 7% on Prices of its Flagship Range - Scorpio and XUV500

» Tata Motors will have to increase Prices by 7% of Safari Storme and Hexa

» Ford India will see a Price Hike of 7% on Endeavour

» Toyota Kirloskar Flagship Range Innova Crysta and Fortuner will witness a Price Hike of 7%

» Luxury Car Makers - Audi, BMW, Mercedes Benz, Jaguar, Landrover will witness Price Hike of 5% (Saloon) to 7% (SUV) 

15 Year Old Cars to be soon Ban Pan India. Report ...
Why Fuel Prices are High in India. Petrol and Dies...

Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments

 

Comments 21

Guest - Sergiev on Tuesday, 12 September 2017 09:56

I booked a Hyundai creta car by paying an token advance in August and when I went to pay the balance amount to get the car , the dealer is claiming additional 7% which is almost 69,000.00 and informed me this is central govement decision.... I think the dealers is getting the benefit of the cess not the manufacturer and government.... cause August sales for all manufacturers was high since dealers and manufacturers knows the cess in advance .... I have no other option to pay the amount knowing I am getting cheated ....

I booked a Hyundai creta car by paying an token advance in August and when I went to pay the balance amount to get the car , the dealer is claiming additional 7% which is almost 69,000.00 and informed me this is central govement decision.... I think the dealers is getting the benefit of the cess not the manufacturer and government.... cause August sales for all manufacturers was high since dealers and manufacturers knows the cess in advance .... I have no other option to pay the amount knowing I am getting cheated ....
Guest - Varun Maniktala on Thursday, 14 September 2017 12:27

I am facing similar issue. R they allowed to charge even after pre booking?

I am facing similar issue. R they allowed to charge even after pre booking?
Guest - KISHORE on Monday, 11 September 2017 18:51

BUYING A USED LUXURY CAR - FOR EXAMPLE 3 YEAR OLD C CLASS - FOR 20 LAKHS - HOW MUCH TAX TO BE PAID

BUYING A USED LUXURY CAR - FOR EXAMPLE 3 YEAR OLD C CLASS - FOR 20 LAKHS - HOW MUCH TAX TO BE PAID
Guest - Ratish Pasumarthi on Monday, 11 September 2017 12:45

What about price change in Hyundai Creta Diesel E+ 1.4 litre

What about price change in Hyundai Creta Diesel E+ 1.4 litre
Guest - rajkumar gangshettyy on Monday, 11 September 2017 19:35

near to 35k hike

near to 35k hike
Guest - chaitanya on Tuesday, 05 September 2017 01:19

will there be any price change on maruti s cross 1.3 diesel zeta due to the gst cess. Its ebgine is sub 1500cc but it is above 4 mts in length... pls clarify

will there be any price change on maruti s cross 1.3 diesel zeta due to the gst cess. Its ebgine is sub 1500cc but it is above 4 mts in length... pls clarify
Guest - loki on Monday, 25 September 2017 15:39

S cross may be its ground clearance is 180mm which makes it to fall in the 50% slab rate,

however as the s cross Hybrid is announced recently in late September, so the charges will be 43%, it depends on when you want to buy.

S cross may be its ground clearance is 180mm which makes it to fall in the 50% slab rate, however as the s cross Hybrid is announced recently in late September, so the charges will be 43%, it depends on when you want to buy.
Guest - SUNIL on Monday, 11 September 2017 19:34

I want to know this as well.
3rd parameter is ground clearance. It's ground clearance is 180 mm.

I think if ground clearance doesn't affect the scenerio, the price will go up by about 2%.

If the new rates are to be levied after considering the third parameter as well, then prices will shoot up much higher.

I want to know this as well. 3rd parameter is ground clearance. It's ground clearance is 180 mm. I think if ground clearance doesn't affect the scenerio, the price will go up by about 2%. If the new rates are to be levied after considering the third parameter as well, then prices will shoot up much higher.
Guest - Mehulbhai Panchal on Thursday, 17 August 2017 15:03

If Private limited co. (GST Registered) sells its car to Individual (Unregistered) then, car is shown in companys Balance sheet.
Q.1 - Who is liable for GST payments?
Q.2 - on which amount GST to be paid? (Book value or sell value or others) ?
Q.3 - How many percentage to be levied with cess?

If Private limited co. (GST Registered) sells its car to Individual (Unregistered) then, car is shown in companys Balance sheet. Q.1 - Who is liable for GST payments? Q.2 - on which amount GST to be paid? (Book value or sell value or others) ? Q.3 - How many percentage to be levied with cess?
Guest - Jatin on Wednesday, 16 August 2017 20:00

Can you tell me the final price of New Octavia 1.8 TSI Style Plus after increas in GST

Can you tell me the final price of New Octavia 1.8 TSI Style Plus after increas in GST
Guest - PRABHAT PAL on Tuesday, 27 June 2017 11:57

Will Price of Hyundai Creta 1.6 increase or decrease after GST in Kanpur.

Will Price of Hyundai Creta 1.6 increase or decrease after GST in Kanpur.
Guest - K Sivakumar on Monday, 11 September 2017 11:20

Price of Hyundai Creta 1600 cc diesel and petrol variants will increase by 7% now.

Price of Hyundai Creta 1600 cc diesel and petrol variants will increase by 7% now.
Guest - Vijay on Saturday, 24 June 2017 10:29

Hi after gst mahindra tuv 300 plus car is increase r decrease .thx.

Hi after gst mahindra tuv 300 plus car is increase r decrease .thx.
Guest - Divakar on Saturday, 24 June 2017 07:27

Will Price of maruti wagon r increase or decrease after GST in Bihar??

Will Price of maruti wagon r increase or decrease after GST in Bihar??
Guest - Manish Maliwal on Friday, 23 June 2017 18:56

While calculating current tax please add impact of VAT on Excise & Infrastructure Cess also as at present VAT is calculated on price + ED + Cess

While calculating current tax please add impact of VAT on Excise & Infrastructure Cess also as at present VAT is calculated on price + ED + Cess
Guest - Jagan on Thursday, 22 June 2017 00:24

What is the GST impact in Bengaluru for Small Cars like Maruti Suzuki Dezire New ?
Does Bangalore levy octroi ?

Currently, its Ex-showroom price is 6,97,000

Will it remain same post GST or increase ?

What is the GST impact in Bengaluru for Small Cars like Maruti Suzuki Dezire New ? Does Bangalore levy octroi ? Currently, its Ex-showroom price is 6,97,000 Will it remain same post GST or increase ?
Guest - Samit Das on Monday, 19 June 2017 18:32

Pl tell me the cost of ford 3.2 endeavour AWD AT TITANIUM after 1 july 2017 ie after GST in chandigarh. Currently the base price or exshowroom price is Rs 3,17,5627

Pl tell me the cost of ford 3.2 endeavour AWD AT TITANIUM after 1 july 2017 ie after GST in chandigarh. Currently the base price or exshowroom price is Rs 3,17,5627
Guest - Yogesh Parkale on Sunday, 18 June 2017 23:08


Will Price of Hyundai Creta 1.6 increase or decrease after GST in Maharashtra

Will Price of Hyundai Creta 1.6 increase or decrease after GST in Maharashtra
Guest - Sachin on Sunday, 18 June 2017 00:36

Can you tell me impact in Mumbai for ged in Mumbai the pre and post GST difference should be 30% existing - 29% after GST, which still leads to saving after GST

Can you tell me impact in Mumbai for ged in Mumbai the pre and post GST difference should be 30% existing - 29% after GST, which still leads to saving after GST
Admin on Sunday, 18 June 2017 10:06

Hello,

Refer details on - GST Impact in Mumbai

Hello, Refer details on - [url=http://www.mycarhelpline.com/index.php?option=com_easyblog&view=entry&id=475&Itemid=91][color=red]GST Impact in Mumbai[/color][/url]
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Tuesday, 21 November 2017

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