Monday, 11 September 2017

IMPACT OF REVISED GST CESS ON CAR PRICE

The GST COUNCIL has revised CESS rate on Mid Segment Saloon car with engine < 1.5 Lt , Saloon cars with engine > 1.5 Lt and SUV segment . As expected there is no change in GST CESS rate on Small segment cars such as Compact Petrol and Compact Diesel cars . 
 
Compact Petrol engine car having engine less than 1.2  Lt have unchanged GST RATE as 28% + 1% CESS = 29%  . Compact Diesel engine car having engine less than 1.5 Lt also have unchanged GST RATE as 28%+ 3% CESS = 31 % . GST CESS rates on above mentioned both segments remains unchanged .
 
Hybrid car have GST rate as 28 % + 15% CESS = 43 % . 

Mid size Saloon car with engine less than 1.5 Lt but length greater than 4 meter have new GST RATES as 28%+ 17 % CESS = 45% . SEDAN cars with engine greater than 1.5 Lt and length also greater than 4 meter have new GST RATES as 28%+ 20% CESS = 48% . While SUV segment has new rates as 28% + 22% CESS = 50% .


Comparing to older GST RATES , Mid segment Saloon cars with engine less than 1.5 Lt and ground clearance under 170 mm , its price is increased by 2 % . While for LUXURY SEDAN cars with engine more than 1.5 Lt and ground clearance under 170 mm , price is increased by 5 % . 

SUV segment has highest increase in price . Price of SUV will increase by 7% due to revised GST CESS .

Cars Such as HONDA CITY , HYUNDAI VERNA , MARUTI CIAZ or  SUV like DUSTER , S CROSS , SCORPIO And LUXURY SUV as FORTUNER , FORD ENDEAVOUR have increase in there prices . 

GST turned negative for automobile sector after this revision on GST .

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