With predictions of reduced pricing of passenger vehicles following implementation of GST from July 1, customers in India experienced considerable confusion as regards their purchase decisions in June, in lieu of benefiting from the tax cut on most vehicles effected by the country’s biggest-ever tax reform. For many vehicle manufacturers, all of June went into stock rationalisation, especially at the dealer end, with most dealers focussing on liquidating their existing inventory so as to not carry it forward into July. The key reasons for this was the upcoming drop in prices and a very grim clause from the government to credit only the excise duty paid on all vehicles procured […]Read more..
With the new GST structure implemented across India from July 1, 2017, there have been changes in the prices of most two-wheelers. Bikes with engine capacities under 350cc get taxed at 28 percent, while those over 350cc get an additional 3 percent cess, taking their effective tax to 31 percent. The previous cumulative tax structure for two-wheelers was 30.2 percent, which means smaller capacity bikes now get taxed less and there is a marginal increase for higher capacity ones. There have generally been price cuts across the board for most mass-market motorcycles, and we’re taking a closer look at pricing changes from various manufacturers. Royal Enfield The company’s ex-showroom prices […]Read more..
With GST now implemented, we take a look at its impact on car prices. While most vehicle categories were expected to see a reduction in taxation, it remained to be seen how much of this benefit was going to be passed down to the consumer. With the new tax structure now in effect, most cars from major manufacturers have seen reductions, but hybrids are subject to a 12.7 percent hike in effective tax. The move is a result of the government’s drive to promote electric vehicles, as hybrids were reported to be gaining an undeserved advantage. Honda Honda has announced GST price cuts on various models ranging from Rs. 5,000 […]Read more..