Reducing commodity and services tax rate: small cars are to gain more than rationalizing prices

It is expected that small cars less than 1500 cc in each of the variables with gasoline and diesel are the largest of the largest of the commodity and services tax (GST), announced by the Commodity and Services Tax Council on Wednesday. The commodity and services tax rates can decrease to 13 % on these cars, while those more than 1500 cc will witness a tax reduction in less than 10 % due to the CESS removal that was previously imposed.

Small cars, small SUVS, and integrated four-wheel drive vehicles-may benefit approximately 60 % of the local passenger vehicle market-from reducing commodity and services tax to 18 % from previous 29-31 % (including CESS). This will be particularly positive for players like Maruti Suzuki and Tata Motors.

Large cars, including sedans and larger SUVs, will be seen, as the commodity and services tax decreased to 40 % of the previous 45-50 % range (including CESS).

According to car sector experts, total vehicles see a decent benefit from reducing commodity and services tax because most groups have witnessed a GST reduction except for motorbikes that exceed 350 cc, a small market in India.

“The commodity and services tax on small cars under 1.2 liters is a change for games, as real consumers exceeded and expelled the demand in the collective sector. With the presence of the festive horse winds from Navratri to DIWALI, novice cars are set for a strong return today.”

This bold repair does not give original equipment manufacturers such as Maruti Suzuki and Tata Motors a more clear advantage, but also indicates a new era where compressed movement transmission stations become cleaner.

“In fact, this can lead to an increase in the rise of hybrids and effective techniques-the destruction of India’s dream of sustainable movement in fact to a festive reality. It is not just a price reduction, it is a reset of the small car market.”

Car analysts expect that the original wheel equipment and relevant series will be the main beneficiaries of these reforms, as the strong replacement base is likely to lead to pent -up demand.

“The auto industry welcomes the government’s decision to reduce the tax and services tax on vehicles to 18 % and 40 %, from previous rates from 28 % to 31 % and 43 % to 50 %, respectively, especially in this celebration season,” said Chailish Chandra, President Siam.

“This step is scheduled to bring the renewed chants of consumers and the injection of fresh momentum in the Indian car sector. Make vehicles more expensive, especially in the novice sector; these ads will greatly benefit buyers for the first time and middle income families, allowing the broader access to personal transport,” he said.

She described it as the Rajesh Jejurikar, ED & CEO – car and farmer sectors, mahindra & mahindra ltd. It will have a long -term positive impact in the car and agriculture sectors.

“We also appreciate the continuation of the commodity and services tax rate by 5 % on EVS, which is a decisive empowerment factor to see clean mobility in India. This measure will increase the adoption of electric cars and enhance India driving in sustainable green transport.”