CarWale
    AD

    GST rates of cars hiked, small cars unaffected

    Authors Image

    Omkar Thakur

    64,488 Views
    GST rates of cars hiked, small cars unaffected

    The confusion about the hike in cess for cars has been allayed by the GST council with the announcement of the new tax slabs for cars. While the small cars remain unaffected, mid-size cars, luxury cars and SUVs get additional cess.

    The GST council has created a new classification for mid-size cars to separate them from luxury cars. This allows the GST council to limit taxation to C-segment and D-segment sedans while imposing higher taxes on luxury sedans. 

    Small cars, defined by a length of less than 4m and engine less than 1.2-litre and 1.5 litre capacity, petrol and diesel respectively, will be charged 1 per cent and 3 per cent additional cess on the base 28 per cent slab respectively. The tax structure has been unchanged for this class. Cars like Maruti Suzuki Alto, Renault Kwid, Suzuki Swift, Honda Amaze and Hyundai i20 are all under the ambit of this bracket.

    Cars measuring less than 4 metres in length but not falling in the displacement bracket for small cars will attract 15 per cent additional cess over the base 28 per cent slab. Cars like the Fiat Punto Abarth and the Ford Ecosport 1.5 petrol fit in this tax slab.

    Cars longer than 4 metres in length have been split into two slabs with 17 per cent cess for mid-size sedans and 20 per cent for luxury sedans. For example, the Honda City and the new Hyundai Verna will attract 17 per cent cess which is 2 percent higher than the previous levy. The Mercedes CLA or the BMW 5 Series will attract 20 per cent cess, marking a 5 per cent hike from its existing tax.

    SUVs now attract the maximum taxation of 50 per cent – 28 per cent base slab and 22 per cent additional cess which is 7 per cent more than the existing taxation. There is no sub-classification for SUVs which means the Mahindra Scorpio and the Range Rover will all be taxed equally at 50 per cent.

    The taxation for hybrid cars and electric cars remains unchanged at 43 per cent and 12 per cent respectively.

    The GST council’s decision to hike the cess in a gradual manner according to the segments seems to be a much logical implementation than the earlier recommended flat 10 per cent increase in cess. The automotive industry, especially the luxury car manufacturers, that had seen greater opportunities from the lowered prices, has its reservations against the hike as it might affect car sales as a whole. But taking historical data into account, increased taxation will only manifest as a small hiccup in the sales charts with the numbers jumping back to envisaged targets eventually.

     

    Related News

    Popular News

    Recent News

    Maruti Suzuki Alto 800 [2016-2019] Gallery

    Featured Cars

    • HATCHBACKS
    • JUST LAUNCHED
    • Upcoming
    Maruti Suzuki Swift
    Maruti Swift
    Rs. 6.49 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Tata Tiago
    Tata Tiago
    Rs. 5.00 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Maruti Suzuki Baleno
    Maruti Baleno
    Rs. 6.66 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Hyundai Grand i10 Nios
    Hyundai Grand i10 Nios
    Rs. 5.92 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Maruti Suzuki Alto K10
    Maruti Alto K10
    Rs. 3.99 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Tata Altroz
    Tata Altroz
    Rs. 6.50 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Maruti Suzuki Wagon R
    Maruti Wagon R
    Rs. 5.54 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Renault Kwid
    Renault Kwid
    Rs. 4.70 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Audi Q7
    Audi Q7
    Rs. 88.66 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    28th NOV
    Mahindra XEV 9e
    Mahindra XEV 9e
    Rs. 21.90 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    26th NOV
    Mahindra BE 6e
    Mahindra BE 6e
    Rs. 18.90 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    26th NOV
    BMW M5
    BMW M5
    Rs. 1.99 Croreonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    21st NOV
    Mercedes-Benz AMG C 63 S E Performance
    Mercedes-Benz AMG C 63 S E Performance
    Rs. 1.95 Croreonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    12th NOV
    Maruti Suzuki Dzire
    Maruti Dzire
    Rs. 6.79 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    11th NOV
    Skoda Kylaq
    Skoda Kylaq
    Rs. 7.89 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Mercedes-Benz AMG G-Class
    Mercedes-Benz AMG G-Class
    Rs. 3.60 Croreonwards
    Avg. Ex-Showroom price
    Show price in my city
    Honda Amaze 2024
    LAUNCHING SOON
    Dec 2024
    Honda Amaze 2024

    Rs. 7.50 - 10.00 LakhEstimated Price

    4th Dec 2024Expected Launch

    Get Launch Alert on WhatsApp

    Toyota Camry 2024
    LAUNCHING SOON
    Dec 2024
    Toyota Camry 2024

    Rs. 45.00 - 55.00 LakhEstimated Price

    11th Dec 2024Expected Launch

    Get Launch Alert on WhatsApp

    Kia Syros
    Kia Syros

    Rs. 6.00 - 10.00 LakhEstimated Price

    19th Dec 2024Unveil Date

    Get Launch Alert on WhatsApp

    BMW New X3
    BMW New X3

    Rs. 65.00 - 70.00 LakhEstimated Price

    Jan 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Hyundai Creta EV
    Hyundai Creta EV

    Rs. 22.00 - 26.00 LakhEstimated Price

    Jan 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Tata Punch facelift
    Tata Punch facelift

    Rs. 6.00 - 11.00 LakhEstimated Price

    Feb 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    MG Gloster facelift
    MG Gloster facelift

    Rs. 40.00 - 45.00 LakhEstimated Price

    Feb 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Citroen Aircross facelift
    Citroen Aircross facelift

    Rs. 10.25 - 14.50 LakhEstimated Price

    Feb 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    AD
    • maruti suzuki-cars
    • other brands
    Maruti Suzuki Dzire
    Maruti Dzire
    Rs. 6.79 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    11th NOV
    Maruti Suzuki Fronx
    Maruti Fronx
    Rs. 7.51 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Maruti Suzuki Grand Vitara
    Maruti Grand Vitara
    Rs. 10.87 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city

    Maruti Suzuki Alto 800 [2016-2019] Price in India

    CityOn-Road Prices
    MumbaiRs. 3.31 Lakh
    BangaloreRs. 3.48 Lakh
    DelhiRs. 2.96 Lakh
    PuneRs. 3.32 Lakh
    HyderabadRs. 3.33 Lakh
    AhmedabadRs. 3.10 Lakh
    ChennaiRs. 3.33 Lakh
    KolkataRs. 3.22 Lakh
    ChandigarhRs. 3.05 Lakh

    Popular Videos

    Mail Image
    Sign up for our Newsletter
    Get all the latest updates from CarWale
    • Home
    • News
    • GST rates of cars hiked, small cars unaffected