Brace For Price Hike of SUVs & Luxury Cars


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Re: Brace for raise in Price of SUVs, large and luxury car

This points to poor research. This 'anomaly' should never have come in the first place. Whats this tearing rush to implement before careful research and planning? It also reveals a a very socialistic mindset that all expensive things are bad, so tax them.
 
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Re: Brace for raise in Price of SUVs, large and luxury car

the only thing that benefited from GST were cars. Not anymore ! Probably Hexa , Jeep, Nexon prices will raise. The
GST council has approved raising cess from 15% to 25% on SUV, mid sized and luxury cars so Hexa Jeep etc pricing are going to raise
https://auto.ndtv.com/news/suvs-luxu...ome-topstories
I'll put some facts right. An SUV is not everything the manufacturers call with 'SUV' in the name. Tax rules have specifications regarding what makes a car what. See this:
gstcarlevels.jpg
An SUV is a car which has a length > 4m ; engine >1500 cc; ground clearance > 170 mm. Which means none of the sub 4m compact SUVs branded and sold in India does not qualify as an SUV in taxation specifications.

All sub 4m cars with petrol engines < 1200cc and diesel engines < 1500cc are small cars in india. Which is why most sub 4m cars have 1198cc petrol engine and 1498cc diesel engine. The 1498cc Ti-VCT petrol Ecosport is not a small car but neither an SUV! It will be classified as a large car(though large car and SUV has same cess).

So coming to the point, Nexon prices will not be affected by this as you mentioned. Here I'm also posting what the GST Council has said today:
gstcar.jpg

What they have decided is to raise the maximum ceiling of cess on motor vehicles from the present 15% to 25%. They have not explicitly mentioned in which all types of vehicles this will be implemented. But as we can assume, small cars having 1% and 3% cess are likely to be untouched. All the other category vehicles having 15% will be what is upgraded to 25% but with the exception of hybrid vehicles likely. Hybrid vehicles might be retained at 15% thus effectively making their cess lower than other more polluting vehicles.

Time to bring in unbranded cars [surprise]which may attract 0% GST[lol]
And I do not understand the rationale behind 0% GST for unbranded cars. GST is not based on brand, but on if the entity is a motor vehicle to be used on Indian roads or not, whether made in a high end factory or in your backyard.

This points to poor research. This 'anomaly' should never have come in the first place. Whats this tearing rush to implement before careful research and planning?
Yes, this is poor show from the top most officials, highly 'educated' and 'experienced'. GST isn't done as a school project by a kid, is it ? [frustration]

It also reveals a a very socialistic mindset that all expensive things are bad, so tax them.
That is not the concept. An expensive thing is taxed higher not just because it is bad, but because of the simple logic that someone who has the luxury of buying a high end car should more taxes than someone buying a small car to meet his/her basic necessities. Just like income tax works.

Also, it's high time this < 4m and > 4m thing ends in India! A car's luxury level should not be assessed based on it's length. Even if they have to look at a dimension to fix this, the width would be a better indicator than the length. Not that even that is all right. The right way is to judge based on engine capacity, seating capacity and price. This would end the all so sad phenomenon of our manufacturers being forced to cramp cars into 4m length! Thus we can make much better cars from the common man at like around 4.25m, tax them lower and tax higher capacity 'luxury' cars at a higher rate. They could have also kept adding cess for like every million increase in price of a car if they wanted to increase their revenue! A 10 lakhs rupees non small car and a 2 crore rupees luxury car has only the same cess of 15%!
 
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Re: Brace for raise in Price of SUVs, large and luxury car

I'll put some facts right. An SUV is not everything the manufacturers call with 'SUV' in the name. Tax rules have specifications regarding what makes a car what. See this:
View attachment 229683


That is not the concept. An expensive thing is taxed higher not just because it is bad, but because of the simple logic that someone who has the luxury of buying a high end car should more taxes than someone buying a small car to meet his/her basic necessities. Just like income tax works.
This argument is fine in countries where basic features like Safety (multiple airbags, ESP ABS) are all taken care of uniformly, and then finer aspects of luxury are priced and taxed. Today, someone buying a 8 lakh car in India will not get the same safety features as one buying a 25 lakh car.
 
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Re: Brace for raise in Price of SUVs, large and luxury car

I'll put some facts right. An SUV is not everything the manufacturers call with 'SUV' in the name. Tax rules have specifications regarding what makes a car what. See this:

So coming to the point, Nexon prices will not be affected by this as you mentioned.
Thanks for the info. Glad that Nexon will not be affected but sad that Hexa will be again out of consideration set of Middle class when the Govt applies the additional cess.
And I do not understand the rationale behind 0% GST for unbranded cars. GST is not based on brand, but on if the entity is a motor vehicle to be used on Indian roads or not, whether made in a high end factory or in your backyard.
That was supposed to be a quip! It was a play on unbranded Atta and unbranded groceries attracting 0% GST!
That is not the concept. An expensive thing is taxed higher not just because it is bad, but because of the simple logic that someone who has the luxury of buying a high end car should more taxes than someone buying a small car to meet his/her basic necessities. Just like income tax works.
It is interesting that all such discussions compares the two extreme ends of price range, forgetting that there is a vast price band in between. A rational tax regime will encourage middle class to buy a better and safer car and avoid crappy public transport. The govt neither bothers to improve transport infrastructure nor encourages measures which mitigate the reliance on the such infrastructure.
 
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Re: Brace for raise in Price of SUVs, large and luxury car

Unbranded cars, well they are the ones used in UP etc by farmers with a low speed diesel engine (mostly from old generators). Jugads.

Well, now if ever they increase cess on cars, it will be purely political. After GST almost all the goods, the price have either remained same or increased except cars. This was expected as motor vehicles were heavily taxed. So if they increase the cess, it will be merely an image correction(pro-poor) thats all.

I have supported the introduction of GST, and hoped they implemented it earlier. April 2017 itself. BUT I am also a anti-CESS. I think Govt should be bold enough and resist the urge to change cess and instead go ahead and withdraw cess altogether. After-all, this govt has taken some very very bold aggressive decisions and come through it.

If they want some difference in the taxation for small and luxury cars, then they already have different rates (5,12,18,28), why not put small cars in lower bracket and big cars in top bracket and everything else in between.

come on govt, get over this cess thing.
 
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Re: Brace for raise in Price of SUVs, large and luxury car

I guess this is the price for repeated large Budget deficits, but this is a stupid move. If benefit is going to given to a Hybrid, it should be like Camry or Accord not SHVS gimmicry.

If they are going to Tax at higher rate, I hope this is limited to Vehichles with Engine capacity greater than 2500cc. That should leave mostly luxury cars and Suv's to be taxed at higher rates.
 

bhvm

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Re: Brace for raise in Price of SUVs, large and luxury car

Guys its time to move on to Personal Aircraft and Yacths. Because they are'nt considered super luxury hence taxed only at 3%.

Just simple cars that ferry people from Their Job and Home are Super luxury. Suggest all people to quit their jobs and roam in Yatchs & Planes. Just like these KG kids are doing now who made all these laws.
 
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kkn13

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Re: Brace for raise in Price of SUVs, large and luxury car

Guys any idea when this hike will affect potential buyers?
If I buy Tucson now and it takes say 3-4 weeks for delivery, is there a chance of hike??
 
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Re: Brace for raise in Price of SUVs, large and luxury car

God Knows, for all we know it might be a gimmick by the Auto Industry to start buying these Vehicles today when August September months rather than the rush during Festive season. I suspect it will be just after the Festive season or on 1 Jan 2018 so that Manufacturers can then push thier Dec 2017 produced cars.

It doesnt make sense to go back to 6-7 different rates for taxes like before.
 
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Re: Brace for raise in Price of SUVs, large and luxury car

I'll put some facts right. An SUV is not everything the manufacturers call with 'SUV' in the name. Tax rules have specifications regarding what makes a car what. See this:
View attachment 229683
An SUV is a car which has a length > 4m ; engine >1500 cc; ground clearance > 170 mm. Which means none of the sub 4m compact SUVs branded and sold in India does not qualify as an SUV in taxation specifications.

All sub 4m cars with petrol engines < 1200cc and diesel engines < 1500cc are small cars in india. Which is why most sub 4m cars have 1198cc petrol engine and 1498cc diesel engine. The 1498cc Ti-VCT petrol Ecosport is not a small car but neither an SUV! It will be classified as a large car(though large car and SUV has same cess).

So coming to the point, Nexon prices will not be affected by this as you mentioned. Here I'm also posting what the GST Council has said today:
View attachment 229682

What they have decided is to raise the maximum ceiling of cess on motor vehicles from the present 15% to 25%. They have not explicitly mentioned in which all types of vehicles this will be implemented. But as we can assume, small cars having 1% and 3% cess are likely to be untouched. All the other category vehicles having 15% will be what is upgraded to 25% but with the exception of hybrid vehicles likely. Hybrid vehicles might be retained at 15% thus effectively making their cess lower than other more polluting vehicles.


And I do not understand the rationale behind 0% GST for unbranded cars. GST is not based on brand, but on if the entity is a motor vehicle to be used on Indian roads or not, whether made in a high end factory or in your backyard.



Yes, this is poor show from the top most officials, highly 'educated' and 'experienced'. GST isn't done as a school project by a kid, is it ? [frustration]



That is not the concept. An expensive thing is taxed higher not just because it is bad, but because of the simple logic that someone who has the luxury of buying a high end car should more taxes than someone buying a small car to meet his/her basic necessities. Just like income tax works.

Also, it's high time this < 4m and > 4m thing ends in India! A car's luxury level should not be assessed based on it's length. Even if they have to look at a dimension to fix this, the width would be a better indicator than the length. Not that even that is all right. The right way is to judge based on engine capacity, seating capacity and price. This would end the all so sad phenomenon of our manufacturers being forced to cramp cars into 4m length! Thus we can make much better cars from the common man at like around 4.25m, tax them lower and tax higher capacity 'luxury' cars at a higher rate. They could have also kept adding cess for like every million increase in price of a car if they wanted to increase their revenue! A 10 lakhs rupees non small car and a 2 crore rupees luxury car has only the same cess of 15%!
How is Ciaz placed. Its is >4M however engine is 1.4 L of Petrol. Will cess hit it??
 
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Right now Ciaz is taxed at 43%, from the above articiles instead of fixed 28+15% cess for cars with Higher displacement than 1.2P or 1.5D or longer than 4M length, they are going to have sub categories like before less 1.5P or 1.5D but greater than 4M, SUV etc with rates going upto 28+25%=53%.

I dont think the CIAZ City etc will be effected, they will target the Higher displacement Vehicles or SUV shaped Vehicles to get more Tax Revenue from Luxury Vehicles making them more elite..
 
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Right now Ciaz is taxed at 43%, from the above articiles instead of fixed 28+15% cess for cars with Higher displacement than 1.2P or 1.5D or longer than 4M length, they are going to have sub categories like before less 1.5P or 1.5D but greater than 4M, SUV etc with rates going upto 28+25%=53%.

I dont think the CIAZ City etc will be effected, they will target the Higher displacement Vehicles or SUV shaped Vehicles to get more Tax Revenue from Luxury Vehicles making them more elite..
Thanks. I was looking for response on CIAZ PETROL AT with 1.4 L engine.
 

kkn13

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Re: Brace for raise in Price of SUVs, large and luxury car

How is Ciaz placed. Its is >4M however engine is 1.4 L of Petrol. Will cess hit it??
Ciaz and S Cross got price hike after GST for some reason, diesel variants for sure afaik
 

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Extra Tax on cars costing over 10 Lakh

NEW DELHI: Cars priced higher than Rs 10 lakh may start costing Indians more, following the latest directive from the Central Board of Indirect Taxes and Customs (CBIC).
TCS (tax collected at source ) is applicable on automobiles above Rs 10 lakh at the rate of 1% and is levied on the ex-showroom price, which includes applicable GST.“

Read:
 

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