New Delhi22 minutes ago
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On September 3, the GST Council reduced the tax on small cars from 28% to 18%.
Tata Motors has announced to reduce the price of its vehicles. According to the Economic Times report, from September 22, Tata vehicles will be cheaper from Rs 65,000 to Rs 1.55 lakh.
The company has taken this decision after approving changes in GST rates. On September 3, the GST Council reduced the tax on small cars from 28% to 18%.
Tata Motors said that it will take full advantage of GST rates to customers. The company believes that this change in GST rates will make it easy for people to buy cars and this will also increase the demand for modern vehicles in India.
GST change Small car and 350cc bikes will be cheaper
- GST has been reduced from 28% to 18% on petrol up to 1,200 cc or diesel trains up to 1,500 cc. This will make small vehicles like Maruti Swift, Alto and Nexon cheaper.
- Apart from this, bikes up to 350cc like Honda Shine, Activa will also become cheaper. Commercial vehicles such as buses, trucks and ambulances have also come down from 28% to 18% GST.
The price of luxury cars will also decrease
GST has been increased from 28% to 40% on luxury cars, but even then luxury vehicles like Mercedes-Benz, BMW and Audi may be a bit cheaper. This is because the compensation cess before GST in the new tax slab has been abolished.
Earlier luxury cars used to get a cess of up to 17-22%
Earlier luxury cars used to have a cess of up to 17-22% with 28% GST, causing the total tax to reach 50%. This made luxury cars quite expensive.
For example, if the price of Mercedes was earlier Rs 1 crore, then it had to pay a tax of about 50 lakh rupees. Now it can be limited to 40 lakh rupees.
Now the government has increased GST from 28% to 40% on trains with a capacity of 4,000 mm or more than 1,500 cc capacity. That is, the tax is increased, but the cess is removed.
Experts believe that there will be not much difference in the first and now due to the removal of cess. Overall, these vehicles may be a bit cheap, but the difference will not be much.
Compensation cess was imposed to protect states from damage
Compensation Cess is a kind of additional tax, which the government imposes on certain goods so that the states can compensate. When GST (Goods and Services Tax) came into force in 2017, many states felt that their tax earnings would be reduced.
To complete this, the central government started a compensation cess, which was imposed on expensive vehicles, cigarettes, liquor -like luxury or harmful items. This tax is extra over GST and the money deposited from it was paid to the states to compensate for their loss.
————————————————————— Read these news also Roti, Paratha, Milk, Health-Life Insurance Tax Free: Now only two slabs of GST 5% and 18%; Changes will be applicable from 22 September
Now only two slabs instead of 4 of GST will be 5% and 18%. This will also make common needs such as soap, AC, car with shampoo. It was decided in the 56th meeting of the GST Council. Finance Minister Nirmala Sitharaman gave this information on 3 September.
Finance Minister Sitharaman said that many food items including milk, roti, paratha, chhena will be GST free. At the same time, individual health and life insurance will also not be taxed. 33 Life -saving medicines, rare diseases and medicines for serious diseases will also be tax free. Read full news …
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