Utility vehicle sales may not develop at an indistinguishable pace in the coming months as the government has expanded cess on luxury cars to 25% from 15% under GST.

Car manufacturers pay 30-50 percent taxes on the cars and with the new GST, they got the lower taxes advantages to the local clients. The luxury cars will proceed with same prices from these are excluded in the general kind of standard goods and services. Just the little cars from the automobile industry will advantage from GST.

As clients sit tight at costs to descend after GST execution, automobile companies are charming them with appealing limited period discounts of up to Rs 2.5 lakh over a scope of vehicles sold in the nation.

Prior to June, industry examiners said the companies have been compelled to think of the rebates as potential clients have kept down on buys anticipating that prices should descend after the usage of GST.

Little petrol cars with engine under 1,200 cc will pull in 1 percent cess, that with a diesel engine of under 1,500 cc will draw in 3 percent cess. Extensive cars with engine more noteworthy than 1,500 cc and SUVs with length more than 4 meters and engine bigger than 1,500 cc will pull in a cess of 15 percent.

The prices of luxury sedans and SUVs will around 4-5 percent and 10-12 percent separately. Also, the prices of spare parts like batteries are relied upon to fall and now the spare parts industry is taxed at 28 percent. It will pay 17-18 percent tax once the GST will be affected.

Below is the chart for how GST impacted and made SUVs more affordable:

Models Tax (Currently) If GST Implemented
Small cars 30.4% Prices down by 12 to 13 percent
Sedans (over 4-metre body length) 44.5% Prices down by  4 to 5 percent
SUVs 52% Prices down by  10 to 12 percent
Spare parts 28% NA

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