Car prices after GST in India

The much awaited GST bill was introduced by the government of India as the One Hundred and First Amendment named ‘The Constitution act 2017’ on 1st July 2017. The Modi government is keen on bringing multiple tax and financial reforms in the country, which was even seen by their surprising step of demonetization. Because of new taxes under GST, the prices of vehicles has been reduced up to 9%. In this article read how GST has impacted the car prices in all segments.

The Impact: 

GST, as we all are aware, is going to impact every single purchasable thing in the market and so it is going to bring changes in the prices of vehicles as well, personal or commercial. So what impact the upcoming tax reform is going to have on your personal commuting is what we are going to discuss today.

After the GST replaced the previous taxes in the country, all of us saw a surge in the discounts offered by all the auto companies in India, which resulted in the increase of sales in the personal car segment. It was astonishing to see the companies ranging from Maruti Suzuki to Mercedes offering huge discounts on their vehicles.

Tax slab rate and cost difference post-GST: 

Although coming under the luxurious item category and the 28% tax slab, the Indian auto industry is taking it as a positive sign as the car prices may come down. However, we might see the increase in the insurance cost and EMI cost as the service tax is expected to increase from 15% to 18%.   The hybrid sector which is a super success in cities like Delhi might see a downfall in its sales as it will be coming under the tax slab of 43%.

Here is a tax index which might make it easy for you to understand:

POST GST TAX RATES
  Base Cess Net
Small Cars Petrol 28.00 % 1.00 % 29.00%
Diesel 28.00 % 3.00 % 31.00%
Mid-Sized Cars 28.00% 15.00% 43.00%
 Luxury Cars 28.00 % 15.00% 43.00%

Car companies and their car model prices:

To make it more understandable let us see a few examples of the some of the car prices:

MARUTI SUZUKI:

Vitara Brezza Price in India
Source: auto.ndtv.com

Maruti Suzuki Alto 800:

Pre-GST- Rs 2.51 lakh to Rs 3.76 lakh, Post-GST- Rs 2.46 lakh to Rs 3.70 lakh(ex-showroom, Delhi)

Maruti Suzuki Swift Dzire:

Pre-GST- Rs 5.45 lakh – Rs 9.41 lakh, Post-GST- Rs 5.42 lakh – Rs 9.39 lakh(ex-showroom, Delhi)

Maruti Suzuki Ignis:

Pre-GST- Rs 4.59 lakh to Rs 7.80 lakh, Post-GST- Rs 4.50 lakh to Rs 7.70 lakh(ex-showroom, Delhi)

Maruti Suzuki Vitara Brezza:

Pre-GST- Rs 7.26 lakh to Rs 9.66 lakh, Post-GST- Rs 7.22 lakh to Rs 9 lakh (ex-showroom, Delhi)

Maruti Suzuki Ciaz:

Pre-GST- Rs 7.73 lakh to Rs 10.52 lakh, Post-GST- Rs 7.45 lakh to Rs 10.24 lakh(ex-showroom, Delhi)

HYUNDAI MOTORS:

hyundai elite i20
source: auto.ndtv.com

Hyundai Grand i10:

Pre-GST- Rs 4.63 lakh to Rs 7.38 lakh, Post-GST- Rs 4.53 lakh to Rs 7.28 lakh(ex-showroom, Delhi)

Hyundai Elite i20:

Pre-GST- Rs 5.37 lakh to Rs 9.09 lakh, Post-GST- Rs 5.24 lakh to Rs 8.96 lakh(ex-showroom, Delhi)

Hyundai Grand Verna:

Pre-GST- Rs 7.96 lakh to Rs 13.17 lakh, Post-GST- Rs. 7.68 lakh to Rs 12.89 lakh(ex-showroom, Delhi)

Hyundai Grand Creta:

Pre-GST- Rs 9.29 lakh to Rs 14.64 lakh, Post-GST-  Rs 8.10 lakh to Rs 13.54 lakh(ex-showroom, Delhi)

safari storme price
Source: cardekho.com

TATA MOTORS:

Tata Tiago:

Pre-GST- Rs 3.30 lakh to Rs 5.85 lakh, Post-GST- Rs 3.22 lakh to Rs 5.76 lakh(ex-showroom, Delhi)

Tata Tigor:

Pre-GST- Rs 4.70 lakh to Rs 7.09 lakh, Post-GST- Rs 4.59 lakh to Rs 6.98 lakh(ex-showroom, Delhi)

Tata Safari Storme:

Pre-GST- Rs 10.64 lakh to Rs 15.63 lakh, Post-GST- Rs 9.83 lakh to Rs 14.81 lakh(ex-showroom, Delhi)

Tata Hexa:

Pre-GST- Rs 11.99 lakh to Rs 17.66 lakh, Post-GST- Rs 10.49 lakh to Rs 16.16 lakh(ex-showroom, Delhi)

MAHINDRA:

Scorpio prices in India
Source: livemint.com

Mahindra KUV100:

Pre-GST- Rs 14.58 lakh to Rs 6.92 lakh, Post-GST- Rs 14.48 lakh to Rs 6.80 lakh (ex-showroom, Delhi)

Mahindra Thar:

Pre-GST- Rs 6.27 lakh to Rs 8.99 lakh, Post-GST- Rs 6.15 lakh to Rs 8.84 lakh (ex-showroom, Delhi)

Mahindra Scorpio:

Pre-GST- Rs 9.40 lakh to Rs 14.60 lakh, Post-GST- Rs 8.90 lakh to Rs 14.10 lakh (ex-showroom, Delhi)

 

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