Planning to buy new car? Check GST impact once | Price of small cars may drop 10%
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GST will be positive for the automotive sector primarily because of the efficiency and the removal of cascading that is expected with GST. And, to give you an example, in an automobile sector, a car is manufactured in a particular state and generally, 80 percent of these cars are sold to states outside the state of manufactures to dealers outside the state. So, today to straight away give you an example, the two percent Central Sales Tax (CST) that they pay will not be there tomorrow because hopefully origin tax is not there. Even the two percent CST will be an integrated GST (IGST) which will be fully creditable by the dealer when he sells the car in the other state. And even from a procurement point of view, if there are interstate procurement we suffer today at 2 percent CST which is a cost to the manufacturer, that also will not happen because those interstate procurements will have an IGST in it which is again available as a full credit to the manufacturer if the credit rules are simple and easy. The second efficiency could be also on the input side. A bigger, more easy credit mechanism so that all the taxes on the input side, whether it is input services, whether it is capital goods, whether it is manufactured products, are set off against the output liability of GST.
http://www.moneycontrol.com/news/business/hello...
Manufacturers are divided on the GST and some have opposed the uniform tax structure and come out in favour of the differential structure. At present, the excise duty for vehicles is divided into four slabs, in which the smallest tax rate is applicable to small cars. With the GST in place taxes levied by the centre like excise duty and state levels taxes like sales tax, road and registration tax would all be subsumed into one. Manufacturers like Maruti Suzuki and Hyundai which derive major sales from the small cars are not in favour of this and prefer a differential rate for different segment of the cars.
It still remains to be seen if the small cars would indeed be grouped under standard good and services category. With standard tax rate of 17-18 percent is accepted, the small cars as well as the big cars would get benefitted with GST implementation since the overall difference is in favour of the Industry and overall rates are expected to decrease.
If the governments agrees to recommendations made by the panel, and put small cars (except luxury cars) in the standard goods and services category, the prices of small cars may reduce by as much as 10 percent, while the prices for luxury sedans as well as SUVs may see a drop of about 2-5 percent.
https://autoportal.com/articles/impact-of-gst-o...
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Tax cannot be reduced nor be removed, it will transffered from direct to Indirect viceversa, but increased periodically
You guys believing politicians word ? lolz.
During congress period :
Above $100 per barell crude oil – petrol price 65 rupees.
During BJP period (now….) :
Below $40 Per barell crude oil NOW – petrol price 65
This is how they fool us, instead of developjng india they advertised, but increased the price of domestic products (1 % increase in fuel increase 4 % of domestic price)
@desibuddy wrote:
Tax cannot be reduced nor be removed, it will transffered from direct to Indirect viceversa, but increased periodically
You guys believing politicians word ? lolz.
During congress period :
Above $100 per barell crude oil bq.the international price and domestic price has no direct relation for the consumers as it is linked with subsidy.
@Alpha.Barood wrote:
@desibuddy wrote:
Tax cannot be reduced nor be removed, it will transffered from direct to Indirect viceversa, but increased periodically
You guys believing politicians word ? lolz.
During congress period :
Above $100 per barell crude oil bq.the international price and domestic price has no direct relation for the consumers as it is linked with subsidy.
thats true, its linked with subsidy, but Subsidy is reduced a lot in BJP and lot of cylinder surrendered, and more…so there spending for subsidy is reduced a lot, atleast they can maintain a price, but instead they increased the price of fuels by increasing TAX, 10 + times…so this is how Indirect tax revenue increases…
now petrol price will be reduced by half, but instead they increased….Saudi arabi and other countries are cutting mass jobs => price of crude reduced by half..
GST will bring in much needed efficiency & transparency. Prices may increase or may not however i’m in favor of GST. For any company setting shop in India, it’s a nightmare to figure the taxes out. GST will simplify the things. How i wish government also brings road tax into GST ambit.
@desibuddy wrote:
Tax cannot be reduced nor be removed, it will transffered from direct to Indirect viceversa, but increased periodically
You guys believing politicians word ? lolz.
During congress period :
Above $100 per barell crude oil – petrol price 65 rupees.During BJP period (now….) :
Below $40 Per barell crude oil NOW – petrol price 65This is how they fool us, instead of developjng india they advertised, but increased the price of domestic products (1 % increase in fuel increase 4 % of domestic price)
At the congress time Govt. of India was spending a whooping 2.6 trillion rupees per quater on the petroleum subsidy to keep the pertrol prices down. Thus the price of crude oil at Congress’s tenure can not be compared to that on PM Modi’s tenure as the former one were subsidised but the latter one is not.
@runjesh wrote:
@desibuddy wrote:
Tax cannot be reduced nor be removed, it will transffered from direct to Indirect viceversa, but increased periodically
You guys believing politicians word ? lolz.
During congress period :
Above $100 per barell crude oil – petrol price 65 rupees.During BJP period (now….) :
Below $40 Per barell crude oil NOW – petrol price 65This is how they fool us, instead of developjng india they advertised, but increased the price of domestic products (1 % increase in fuel increase 4 % of domestic price)
At the congress time Govt. of India was spending a whooping 2.6 trillion rupees per quater on the petroleum subsidy to keep the pertrol prices down. Thus the price of crude oil at Congress’s tenure can not be compared to that on PM Modi’s tenure as the former one were subsidised but the latter one is not.
MMS congress created a loan ( non payment for oil bill to Iran ) worth over 70thousand crore only Modi govt have repaid it
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GST bill in Rajyasabha today