GST: Small cars become more expensive, tax on luxury cars rebated
By Nikita Singh |
5/19/2017 11:22 AM Friday
With the imposition of an additional cess on the small car segment, under the new tax regime of GST, small cars are likely to cost the customers some extra bucks.
While the larger sedans, sports utility vehicles and luxury cars are likely to benefit from the implementation of GST, as the 15 per cent cess levied on the luxury car segment will still amount lesser than the tax imposed on the particular segment earlier. The earlier tax levies ranged between 25 per cent and 55 per cent along with an additional cess.
Whereas the small car segment used to attract an excise duty of 12.5 per cent and an additional VAT of 12.5 to 14.5 percent under the previous tax regime, the GST regime spurring the tax levies by 29-31 percent.
The GST regime will impose a uniform tax rate of 28 per cent on cars with an additional cess of one per cent on small petrol cars and three per cent on small diesel cars. Moreover, the mid to large cars including SUVs and hybrid motor vehicles will attract 15 per cent cess.
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