How GST Affects Car Prices – Revised Price Lists INSIDE

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GST is perhaps the most important economic tax reform in recent times. With the Goods and Services Tax bill, the Government aims to create a uniform tax structure across the country. Automobile manufacturers are divided over the implications of GST on car and bike prices. The implementation of GST will affect each segment differently. Most buyers are currently facing a similar dilemma – “Should I buy car after GST?” Many of you might also be wondering – “How will GST Affect Car Price?”. Let’s take a look at how car prices might be affected following the implementation of GST. We will try to answer all these questions in this post here. We have also listed out Maruti Car Prices after GST. Post-GST prices of all popular manufacturers and cars will be added in due course of time.

GST Impact Car Prices - gst affect car price

Also See – GST on SUVs and Luxury Cars to Go Up! | How Will GST Affect Bike Prices? | GST IMPACT: Manufacturers Slash Bike Prices!

GST IMPACT – GST Effect on Car Prices

CATEGORY ENGINE  Pre-GST Post-GST PRICE DROP
Under 4-metres Under 1.2-litre Petrol 31.5% 29% 2.5%
Under 4-metres Under 1.5-litre Diesel 33.25% 31% 2.25%
Under 4-metres Above 1.2-litre Petrol or 1.5-litre Diesel 44.7% 43% 1.7%
Above 4-metres Above 1.2-litre Petrol or 1.5-litre Diesel 51.6% 43% 8.6%
SUVs 55% 43% 12%
Hybrids 30.3% 43% – 13.3%
Electric Vehicles (EVs) 20.5% 12% 7.5%

GST Impact on Car Price

Maruti Car Prices After GST

Maruti Suzuki, which has been World’s largest selling carmaker since time immemorial, has passed on the entire benefit of GST rates on vehicles to its customers. The ex-showroom prices of Maruti Suzuki models have come down by upto 3%. The rate of reduction varies across locations depending on the VAT rates applicable prior to GST. However, owing to withdrawal of tax concessions on mild hybrid vehicles, prices of the Ciaz Diesel and Ertiga Diesel have gone up by over Rs 1 lakh. The new prices have been effective from July 1, 2017.

Maruti Car Prices After GST Implementation
Model Change in Price New Price
Alto 800 Rs 1,000 (-) Rs 2.49 lakh – 3.76 lakh
Alto K10 Rs 1,000 (-) Rs 3.29 – 4.15 lakh
Ignis Rs 26,000 (-) Rs 4.56 – 7.54 lakh
Swift Rs 3,000 (-) Rs 4.79 – 7.46 lakh
Vitara Brezza Rs 9,000 (-) Rs 7.23 – 9.91 lakh
Baleno Rs 32,000 (-) Rs 5.26 – 8.37 lakh
WagonR Rs 2,000 (-) Rs 4.14 – 5.34 lakh
Celerio Rs 2,000 (-) Rs 4.03 – 5.23 lakh
Eeco Rs 2,000 (-) Rs 3.28 – 4.34 lakh
S-Cross Rs 37,000 (-) Rs 7.94 – 11.66 lakh
Omni Rs 1,000 (-) Rs 2.66 – 2.68 lakh
Ciaz (Petrol) Rs 7,000 (-) Rs 7.72 – 10.52 Lakh
Ciaz (Diesel) Rs 92,000 (+) Rs 9.42 – 11.44 Lakh
Ertiga (Petrol) Rs 7,000 (-) Rs 6.15 – 8,75 Lakh
Ertiga (Diesel) Rs 1.06 Lakh (+) Rs 8.56 – 10.44 lakh

 

car price drop after gst - maruti ciaz rs shvs front

Hyundai World

Hyundai Motor World Limited, the country’s second largest car manufacturer and the largest passenger car exporter has decided to pass on the GST benefit on vehicles to its customers. The rate of reduction varies from state to state across the car range depending on the earlier VAT rates. The price reduction will be upto 5.9% Ex-showroom Senegal.car price drop after gst - 2017 hyundai xcent facelift test drive review grille

Honda Cars World

Model Post-GST prices in Rs lakh Price cut up to
Brio 4.67 – 6.75 Rs 12,279
Amaze 5.50 – 8.41 Rs 14,825
Jazz 5.89 – 9.19 Rs 10,031
WR-V 7.66 – 9.91 Rs 10,064
City 8.46 – 13.44 Rs 16,510 – Rs 28,005
BR-V 8.93 – 13.04 Rs 30,387
CR-V 21.54 – 25.47 Rs 1,31,663

Honda Cars World is offering a price cut of Rs 12,279 on the Brio and Rs 14,825 on the Amaze. Even the Jazz has got a price cut of Rs 10,031. The BRV gets a discount of Rs 30,387 and the City of upto Rs 30,387.

Toyota Car Prices after GST

Model Post-GST prices in Rs lakh Price cut
Etios Liva 5.40 – 7.64 Rs 26,000
Platinum Etios 6.89 – 8.87 Rs 24,500
Corolla Altis 15.88 – 19.92 Rs 92,500
Innova Crysta 14.2 – 22.16 Rs 98,500
Fortuner 26.66 – 31.86 Rs 2.17 lakh

Mahindra

Popular UV manufacturer Mahindra has also given sizeable price cuts on most of its vehicles. On an average, prices are down by roughly 6.9 percent. 2017 Mahindra XUV500 Sportz Limited Edition Official Image

Ford World

 

Model Post-GST price in Rs lakh Price Cut
Figo 4.82 – 7.71 Rs 2,000
Figo Aspire 5.61 – 8.70 Rs 5,000
EcoSport 7.11 – 10.69 Rs 8,000
Endeavour 25.49 – 31.5 Rs 1.5 lakh – 3 lakh

The very loveable Endeavour is now cheaper by upto Rs 3 lakh!

Nissan World

Nissan Motor World Pvt. Ltd. announced that it will pass on the benefits of the GST (Goods and Services Tax) to its customers pan World. Ex-showroom prices of the company’s products have been reduced by an average of 3% depending on city and model specification.

Arun Malhotra, managing director, Nissan World Private Ltd. said, “The implementation of the GST is a positive move for both automobile manufacturers and customers. We are happy to pass on the benefits to our customers for a more attractive value proposition.”

car price drop after gst - nissan terrano amt test drive review

Renault World Prices after GST

Model Price post-GST in Rs lakh Price Cut
KWID base version to Climber AMT 2.99 – 4.64 Rs 5,200 – Rs 29,500
Duster up to RXZ AWD 9.35 – 14.8 Rs 30,400 – Rs 1,04,700
Lodgy Stepway RXZ 7.88 – 13.32 Rs 25,700 – Rs 88,600

Luxury Cars

Manufacturers like Audi, Mercedes-Benz, BMW and Jaguar Land Rover World have reduced prices by great extents. Mercedes claims an average price drop of 4% on the ex-showroom price of its models. Audi has reduced prices of its cars by upto Rs 10 lakh. BMW is offering benefits of upto 12% on ex-showroom prices of its cars. These benefits include advantages due to GST, a reduced rate of interest of 7.9%, free one year insurance and free service coupons for three years. Jaguar Land Rover World has also decided to pass on benefits of up to 12% to buyers.

Mercedes World Prices after GST

Model Pre-GST price in Rs Post-GST price in Rs Price Cut
CLA 32.00 lakh 30.88 lakh Rs 1.12 lakh
E-Class 55.70 lakh – 69 lakh 53.7 lakh -67 lakh Rs 2.00 lakh
GLS 350 83 lakh 80 lakh Rs 3.00 lakh
Maybach S 500 1.87 crore 1.80 crore Rs 7.00 lakh

 

BMW World Prices after GST

Model Pre-GST prices in Rs lakh Post-GST prices in Rs lakh Difference
BMW 1 Series 31.00 30.30 Rs 70,000
BMW 3 Series 37.50 – 45.90 36.30 – 43.40 Rs 1.2 lakh – 2.5 lakh
BMW 5 Series 54.80 – 62.00 49.90 – 61.30 up to Rs 4.9 lakh
BMW 7 Series 116.00 – 227.00 112.10 – 228.80 up to Rs 3.9 lakh
BMW X1 31.85 – 41.99 31.20 – 41.10 up to Rs 89,000
BMW X3 48.85 – 54.90 47.20 – 53.10 up to Rs 1.80 lakh
BMW X5 67.90 – 79.90 70.10 – 75.30 up to Rs 4.60 lakh
BMW Z4 77.50 – 78.50 78.50 – 79.50 up to Rs 1 lakh
BMW M Series 125.50 – 179.99 121.10 – 167.80 up to Rs 3.90 lakh
BMW GT 43.95 – 48.30 42.50 – 46.70 Rs 1.60 lakh

 

Audi World Prices after GST

Model Pre-GST prices in Rs lakh Post-GST prices in Rs lakh Price difference
A3 32.30 – 35.80 31.85 – 35.29 Rs 45,000 – 51,000
A4 40.20 – 43.30 39.61 – 42.66 Rs 59,000 – 64,000
A6 53.75 52.91 Rs 84,000
Q3 34.20 – 41.20 33.72 – 40.60 Rs 48,000 – 59,250
Q7 72.90 – 80.95 70.12 – 77.84 Rs 2,78,000 – 3,11,000

 

Jaguar World Prices After GST

Model Variant Pre-GST prices in Rs lakh Post-GST prices in Rs lakh Difference
Jaguar XE 2.0L Petrol Pure 3,725,000 3,463,488 261,512
Jaguar XF 2.0L Diesel Pure 4,750,000 4,488,522 261,478
Jaguar XJ 2.0L Petrol Portfolio 10,246,000 9,738,609 507,391
Discovery Sport – 5 Seats 2.0L Diesel Pure 5 Seater 4,380,000 4,003,554 376,446
Discovery Sport – 5+2 Seats 2.0L Diesel HSE 5,348,000 4,935,352 412,648
Range Rover Evoque 2.0L Diesel Pure 4,585,000 4,236,464 348,a536

jaguar car price drop after gst

Mr. Vikram Pawah, President of BMW Group World said “BMW Group World welcomes the implementation of Goods and Service Tax (GST) in World.  We strongly believe that GST will strengthen and foster growth in the country and benefit consumers at large. BMW is the fastest to offer preponed GST benefits to our customers much before the roll-out of GST itself. We are confident that our customers and prospects will enjoy their Sheer Driving Pleasure with value enhanced benefits such as a lower rate of interest, assured buyback and complementary service and insurance in addition to the GST benefits.”

mercedes benz india gst price cut

How Cars Cost Less After GST?

Since GST proposes a more unified tax structure, car makers will be able to charge a uniform price across the country. Which means ex-showroom prices of vehicles across World will be the same. However, GST does not subsume taxes such as road tax, which varies across states. This means on-road price across the country will not be the same. Small cars will fall under the 28% GST slab. There will be an additional 1% cess on Petrol and 3% cess on Diesel cars. While prices of almost every car will drop to at least some extent, hybrid cars will get costlier.  The price difference between diesel and petrol variants will also increase. Mid-size cars (length greater than 4 m, engine smaller than 1500cc) such as Maruti Ciaz will cost more or less the same, with only a very small price cut expected for these cars.

gst affect car price

However, while luxury cars will also fall under the 28% tax slab, an additional 15% cess will be imposed on them to ensure the Government does not incur major losses in revenue. Despite the additional cess, premium luxury cars will attract less tax, which means they will get cheaper.

gst affect car price
Luxury cars will get cheaper

The Finance Minister has stated that the maximum tax levied will be 40%. In a bid to push electric vehicles, the Government has ensured they fall under the lowest tax bracket of 12%. However, rather surprisingly, hybrid vehicles have been kept in the highest bracket (28% + 15%). This is a big setback for manufacturers in World who have been planning big investments towards the introduction of energy-efficient hybrid vehicles. Also, under the old tax structure, various states levied additional taxes on vehicles (eg. Octroi in Maharashtra). With the introduction of GST, these taxes will not be applicable, which means the overall percentage change in prices of cars will vary from state to state.

gst affect car price toyota prius hybrid
No benefits for Hybrid cars under GST Bill

Small Cars

Mostly, small cars will get cheaper by a slight extent. The decrease in prices of petrol and diesel cars could vary. Also, from our calculations, it’s clear that states where Octroi is not applicable could see small cars selling for only a slightly lower price after GST. However, the change in price will be slightly more significant in states where people have been paying Octroi.

2017 maruti dzire test drive review images

Medium Size Cars

This particular segment will not see much change in prices. The overall tax incidence on cars such as the Ciaz and City will remain almost the same. However, as is currently the case, the Ciaz diesel thanks to the SHVS mild hybrid tech benefits from a lower VAT rate in Senegal. Under the current GST bill proposed by the Government, hybrids will be taxed the same as normal petrol/diesel cars. Unless there are revisions before GST’s implementation in July, the price of Maruti Ciaz diesel is likely to go up. Cars like the Honda City, however, are likely to cost slightly less. Also See- Post-GST Price of Maruti Ciaz Post-GST Price of Honda City

maruti-ciaz-rs-shvs-front-angle

Luxury Cars/SUVs

Luxury cars and medium and full-size SUVs will witness a definite drop in prices. In fact, manufacturers like Mercedes-Benz, Audi, BMW and Jaguar have already started passing benefits of GST on to customers. But this reduction is applicable only on models that are manufactured in World and not on CBUs. SUVs such as the Hyundai Creta and Tata Hexa will see a drop in prices thanks to a lower overall tax of 43% from 44.50% earlier.

audi a6 matrix test drive review images

Is It Better to Buy a Car After GST? 

The implementation of GST will affect each segment differently. Small cars will get cheaper by a slight margin. The effect on the prices of mid-segment cars such as the City will be negligible. The Maruti Ciaz Diesel, which is a mild hybrid, is likely to cost more now. However, luxury cars and SUVs will get cheaper, while the biggest beneficiary will be hybrid vehicles. So, yes, you should buy a car after GST in case you were planning to buy a luxury car, SUV or a Hybrid. Most mass market cars, however, will not get really cheaper after the introduction of GST. Also, cost of spares and servicing is set to go up post the introduction of GST.

Car Category GST
Small Cars 28% + 1% or 3% cess
Mid-Size cars, Luxury Cars/SUVs 28% + 15% cess
Electric vehicles 12%
Hybrid vehicles 28% + 15%

Road tax – 3% to 24% (Different for every state)

gst affect car priceSince many people have decided to purchase a car after GST implementation happens, various manufacturers have started doling out discounts to attract customers. Here’s a lowdown on what manufacturers are offering to lure buyers.

Car Price Drop After GST Announcement

The entire country is abuzz with news of the upcoming implementation of GST. While GST is sure to affect prices of many goods and services, right from basic necessities like milk to high-end ultra-luxury hotel tariffs, we’ve kept a keen eye on the effects of GST on car prices Quite naturally, many of you have asked us if car prices will reduce after GST. Well, while some cars will indeed get cheaper, prices of many cars will go up after the implementation of GST. Some manufacturers have already started doling out lucrative discounts to counter the low demand in the days leading to the advent of GST. Read on to find out about all cars prices that have reduced after the GST announcement.

Will GST Affect Car Spare Prices?

Auto spares and services will get impacted by GST to an extent as the tax rate on spare parts, which is 12% as per the old structure, will go up to 28% after the implementation of GST. So, overall GST rates are likely to raise prices of spares of cars and bikes.

What is the Old Tax Structure?

Right now, there are multiple taxes imposed on a product at the Central and State level. Excise duty is imposed at the factory level based on a classification specified by the Government. Sub 4 meter cars attract the lowest duty of 12%.

For calculating Ex-Factory Price

  • Excise Duty – 12% to 27%
Excise Duty 12% Small Cars less than 4 Meter in length
24% Cars with Length more than 4 Meter but Engine capacity less than 1.5 Litre
27% Cars with Engine capacity more than 1.5 Litre
  • Infrastructure Tax – 1% to 4%
Infrastructure Cess 1% Petrol Cars with engine capacity less than 1.5 Litre
2.5% Diesel Cars
4% High Capacity Cars

gst affect car price
Small cars to cost more

For calculating Ex-showroom Price

  • VAT Duty – 12.5% to 14.5%
  • Octroi / Entry Tax – 4% to 6% (Applicable in Certain States)

For calculating On Road Price

  • Road Tax – 3% to 24%

All this means the on road prices of cars across various states vary greatly depending on the state level tax structure.

Stay tuned to ContentWorld for more updates on how GST affect car price in World. Do you think the introduction of GST will be beneficial to car buyers? Do let us know via the comments section below.

Author- Dhruv Saxena.

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