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The GST change reduced the tax on Maruti Suzuki Wagon R, Tata Punch, Swift, Baleno, Fronx, Dzire from 29 to 18 percent. Hyundai Creta, Maruti Ertiga, Brezza, Mahindra Scorpio will now be taxed at 40 percent. The new tax rates are going to be implemented from September 22.
The Indian car market, which was struggling with uncertainty and speculation until a few days ago, is now in a better mood. Reason? Changes in Goods and Service (GST). After the new tax reform, different segment cars are going to be cheaper. Let us know what will be the effect on the price of cars with the new tax slab.
Maruti Suzuki Wagon R: This car was earlier taxed at 29 % tax in which 28 % GST and 1 % cess were levied. Due to which the total tax was 28% +1%. Now it will be charged only 18 % tax. With which 11 % can be saved directly.
Tata Panch: This car of Tata also earlier used 29 % tax in which 28 % GST and 1 % cess were levied. Due to which the total tax was 28% +1%. Now it will be charged only 18 % tax. Due to which 11 % can be saved directly on the punch.
Hyundai Creta: The petrol model of this car was earlier taxed up to 45 % and diesel up to 48 %. Now this tax has been reduced to 40 %.
Maruti Ertiga: This car will now levy 40 % tax which was earlier the total 45 %. This includes 28 % GST and 17 % cess.
Maruti Brezza: This car will also be levied 40 % tax, which was the first total 45 %. This includes 28 % GST and 17 % cess.
Swift, Baleno, Fronx: GST on these three cars has now become 18 %, which was earlier 29 %. Apart from this, the same tax will be applicable on Dzire.
Mahindra Scorpio: Earlier, 50 % tax was charged on this car by applying 28 % GST and 22 % cess. Now this tax has been reduced to 40 %.