New Delhi15 minutes ago
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Mahindra & Mahindra (M&M) has decided to give full advantage of the exemption in GST on all its ICE (internal combination engine) SUV trains from today i.e. Saturday (September 6). Mahindra & Mahindra has become the first automobile company to do so. However, the new GST rates will be applicable from September 22.
The company announced that the prices of their ice SUV range have been cut from Rs 1.01 lakh to Rs 1.56 lakh. The maximum benefit will be available on the XUV3XO diesel model, which has reduced the price of Rs 1.56 lakh.
Thar 4WD Diesel and Scorpio Classic ₹ 1.01 lakhs cheaper
At the same time, the price of Thar 4WD Diesel and Scorpio Classic has come down by Rs 1.01 lakh. Apart from this, the price of Bolero/Neo has been cut by Rs 1.27 lakh, XUV3XO petrol Rs 1.40 lakh, Thar 2WD diesel Rs 1.35 lakh, Scorpio-N 1.45 lakh rupees, Thar Rocks Rs 1.33 lakh and XUV700 have been cut by Rs 1.43 lakh.
This step of Mahindra is very beneficial for customers, as it has made her favorite SUV vehicles more economical now. The company said that this decision has been taken to provide maximum benefit to customers.
Tata-Maruti and Reno vehicles will also be cheap
Car makers like Tata Motors, Maruti Suzuki, Reno India have also decided to give full advantage of GST exemption in their popular models to customers. However, all these companies will give this discount to customers from September 22 itself. The move is expected to increase demand in entry-level and SUV segment before the festive season.
Maruti Suzuki: Maruti Suzuki, the country’s largest car maker, is considering huge discounts for consumers before the festive season. Maruti Chairman RC Bhargava said that the relief of relief in GST will be directly advantage to small cars and this year the sales are estimated by 10%. However, the prices of luxury models can decrease by about ₹ 5 lakhs, but the high cut is only for hatchback and compact sedan.
Tata Motors: Tata Motors confirmed that it would give full advantage of GST to customers, including a cut from ₹ 65,000 to ₹ 1.55 lakh. This cut will apply to the company’s hatchback, compact SUV and flagship SUV range.
Reno India: Reno India has also confirmed a cut of up to Rs 96,395, focusing on its compact car lineup.
On September 3, the GST Council reduced the tax on small cars from 28% to 18%. While tax on big cars/SUVs has been increased to 40%. At the same time, 5% GST slab remains intact on electric vehicles. Car makers have reduced prices to reach customers and experts estimate that demand will increase during the festive quarter.
GST change will make small car and 350cc bikes cheaper
- GST has been reduced from 28% to 18% on petrol up to 1,200cc or diesel trains up to 1,500cc. 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 an 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.
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