The automakers’ worst fear has come true as the Union Cabinet approves a hike in GST cess on large cars, SUVs and luxury cars from 15% to 25%.
The GST, which was rolled out on July 1 2017, levied a base tax of 28% and an additional 15% cess on the aforementioned vehicles bringing the total to 43%. All the automakers happily passed on the benefits to the customer one after the other. Toyota Fortuner for example, got a price cut of over Rs 2 lakh, while the Jeep prices got slashed up to Rs 18.5 lakh.
Now with the 10% hike, which brings the total to 53%, the tax rate has pretty much gone back to how it was before the implementation of GST. The GST council is yet to announce the date of the new rate to be effective as there are some formalities pending. So if you have something in mind, better book now.
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