It’s not easy to implement a thing that can impact every walk of life. And, it is proving just that in the case of Goods and Services Tax (GST). Though the implementation of GST is more than a 2-month old story, officials are yet to find the right rates to eliminate the tax anomalies. As the GST subsumes more than a dozen of central and state-level levies with one unified tax, there can be some anomalies.
To make sure the states do not lose on the revenue due to the anomalies, the union finance ministry had a meeting the state government officials on September 9, 2017.
One of the important consideration was the GST Tax Slab India with respect to cars. While deciding the framework before the rollout of the indirect tax reform, it was decided to keep the highest rate of 28% in the case of cars, plus a cess of upto 15%. Post the meeting, the cess part is increased to 17% for mid-size cars, 20% for luxury cars and 22% for Sports Utility Vehicles (SUVs). However, the council decided to maintain the status quo on small and hybrid cars.
Following the cess hike, some automobile players have hiked the prices of their models. Let’s find out the car models whose prices have gone up following the implementation of the cess hike.
A Brief on Price Cut of Cars
Leading car manufacturers like Jaguar, Honda and Toyota have slashed the prices in the wake of cess hike. Let’s read the details one-by-one now.
Price Hike of Jaguar Models
Jaguar India has hiked the prices of its luxury and SUV models to the tune of ₹80,000-10,00,000. These models include XE, XF, XJ, F-Type and F-Pace.
The XE models, available in both petrol and diesel variants, are hiked by about ₹80,000. The diesel variants, which were priced at ₹35.37-43.21 lakhs, are now available at a higher price of ₹36.61-44.72 lakhs. On the other hand, the price of the petrol-powered vehicle models has gone up to ₹35.85-43.69 lakhs from the earlier level of ₹34.64-42.47 lakhs.
The XJ models, which are one of the most popular luxury ranges in India, consist of both petrol and diesel-powered vehicles. While the price of the petrol models has risen to ₹1 crore from ₹97.39 lakhs, the diesel vehicles saw their price elevated to ₹1.07 crore.
The XF models are one of the most popular sedans across the country. The 2-litre diesel engine-powered vehicles, which were earlier available at ₹44.89-57.25 lakhs, can now be bought at a higher price of ₹46.46-59.25 lakhs. Whereas, the 2-litre petrol variant would now cost ₹51.40-58.35 lakhs, rising from ₹49.66-56.35 lakhs.
Holding the title of World Car of the Year, Jaguar F-Pace is one of the most popular SUVs across the globe. However, it is available only in diesel engine options of 2-litre and 3 litre, respectively. The 3-litre vehicle models are now available at ₹1.05-1.15 crore, higher than the earlier price range of ₹1-1.10 crore. Whereas, the 2-litre models now come at an increased price of ₹70.67-76.84 lakhs. Previously, the price of these models was ₹63.37-73.25 lakhs.
The F-Type models are available in coupe and convertible variants. The price of the former is hiked to ₹2.15-2.57 crore from ₹2.05-2.48 crore, while the latter would now command a higher price of ₹2.29-2.72 crore. The convertible models were earlier priced at ₹2.22-2.62 crore.
Hyundai, Honda & Toyota Join Price Hike Race
The cess hike also led Hyundai, in addition to the other automakers, to increase the prices of its car models. The leading car manufacturer has brought a price rise in its Elite 20, new Verna, Creta, Elantra and Tuscon models. Elite i20’s 1-4 litre petrol variant would now cough out an extra cash of ₹12,457 from your pocket to buy the model. At the same time, new Verna and Creta have become dearer by ₹29,090 and ₹20,900-55,375, respectively. The prices of Elantra and Tuscon models have surged by ₹50,312-75,991 and ₹64,828-84,867, respectively.
Honda Cars India have raised the prices of its BR-V, CR-V and City models by ₹7,003-89,069. Meanwhile, the Japanese carmaker Toyota Kirloskar Motor has hiked the prices of Corolla, Fortuner, Etios and Crysta models by ₹13,000-1,60,000.
No doubt, the car prices are hiked post the implementation of cess hike, a part of GST Tax Slab India List. But if you analyze the development carefully, you will find the GST on car price getting restored to the pre-GST levels. You need not to panic, instead be in the hunt of an opportune time to bring home a car of your choice.