GST Bill Good / Bad for cars . GST is about to roll on in few months. If you planning to buy luxury car than you may wait for the GST Bill to implement. Benefit will be 4 to 12 % points lowering in the tax. That’s because indirect taxes such as excise duty, value added tax, state level taxes such as Octroi, local body tax and casess get subsumed into the goods and services tax (GST), and cess on luxury cars get capped. Yet, a cheaper car is not a given, since manufacturers may raise prices and states could impose a new cess, tax experts at consulting firms said. Luxury cars attract basic excise duty of 27%. Not only the locally assembled models of luxury car makers but premium models in mass carmakers’ line-up will also benefit from the new tax structure. For small cars, the GST is going to be tax neutral. Currently a buyer of a luxury car or any other big car which includes a sport utility vehicle (SUV) pays a total duty of up to 55% of...
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