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No GST Rate Cut on Cars on 20th September 2019. Exclusive Confirmed Report

No GST Rate Cut on Cars on 20th September 2019. Exclusive Confirmed Report

Waiting for GST Reduction on Cars through GST Council Meeting. Well GST Fitment Committee rejected the proposal of any cut on GST in Passenger Cars in India

 

No GST Rate Cut on 20th September 2019: Most Likely Confirmed

GST Rate Cut was one of the most talking points of the sector. After Low sales, the same was recommended by Finance Minister which would be considered by GST Council

However, as the first step GST Fitment Panel has formally announced that they have rejected any rate cut on Automobile. Fitment Committee clearly said that “Overall Present tax Incidence on Motor Vehicle is lower than Pre GST Incidence. Any rate cut would enhance compensation requirement for Centre”. 

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

The Compensation kitty is already falling short to compensate and thus no GST cut is recommended. However, yes they have said that GST on commercial Vehicle used for transportation purpose for 10 to 13 seater Vans by reducing cess. 

Its important to understand that GST Fitment Panel is the key evaluation team and although GST Council team can over rule the order due to political factor or any other reason they deem fit, but the Fitment Panel recommendation carries a strong weightage and in most likely scenario no rate cut would be announced on Passenger Cars on September 20, 2019 - not even on Hybrid Vehicle Segment

 

Do note that in Pre GST Scenario various form of Taxes were imposed

  • Excise Duty (8% to 27%) 
  • Infrastructure Tax (4%) 
  • CST Tax & NCCD Duty 
  • VAT Duty (12.5% to 14.5%)
  • Octroi / Entry Tax (4% to 6%) 

All these Merged to form Single GST with additional Cess Rates which Varies

  • 29% to 31% in Sub 4 Meter Cars 
  • 43% to 50% in Above 4 Meter Cars 

Considering fact that Automobile Industry sales dropped by 30% in last 2 months - this will come as big shock to Automobile Manufacturers where customers already deferred car buying plans post 20th September 2019 and discounts only to widen further

Want to Check out Deals - Check out New Car Deals

 

Should you Buy Car Now or Wait

Dealer Level Discounts have increased a lot along with High Consumer Offers.

If you been waiting for New Car then possibly this can be the best time to extract a reasonable good deal from your New Car Dealer. Just go for it !!

Kia Selos Special Offers from ICICI Bank with 100%...
Corporate Taxes Slashed to 22% by Finance Minister...

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

 

Comments 2

Guest - Padmarajan on Saturday, 21 September 2019 07:24

Sir can u please informed my the year and month of manufacture of hyundai verna VIN No mentioned as under
MALC841CLKM160816

Sir can u please informed my the year and month of manufacture of hyundai verna VIN No mentioned as under MALC841CLKM160816
Guest - Deepak on Thursday, 19 September 2019 12:38

Then what would happen at GST Council Meeting if they've decided not to change the rates.

Then what would happen at GST Council Meeting if they've decided not to change the rates.
Guest
Friday, 18 October 2019

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