After the decision on implications for the new single tax regime, many people are anticipated of what is the correct time to drive home their dream car. Pre GST or Post GST.
However, as the carmakers in India are reaching out to the best of their potentials to clear up their stock before the nationwide Goods and Services Tax gets implemented, they are luring the customers with drooling offers.
Starting off with the Indian choice, Maruti Suzuki is offering discounts of Rs 25,000-35,000 on Alto and Swift. And Hyundai is offering price benefits in the range of Rs. 25,000 to Rs.2,50,000. Other Manufacturers like Datsun are sealing the deals with free insurance and reduced interest rates
At Mahindra, benefits range from Rs27,000 on Scorpio, Rs 61,000 on TUV300, Rs 72,000 on KUV100 and Rs 90,000 on XUV500 till June 30.
Dealers can claim 60% input tax credit on stocks lying unsold till June 30. While most companies have agreed to provide financial support to dealers during the transition, the effort is to liquidate inventory to the extent possible ahead of July 1.
Many potential car buyers might put off their decision to purchase their dream cars after July so that they have a clearer picture of the tax implementations.
Honda Cars India (HCI) has, in fact, come out with an innovative scheme to address the dilemma and is assuring compensation to buyers in event of a decline in vehicle prices post implementation of GST. "If vehicle prices decline post-GST, the company will directly refund the difference to the consumer. The buyer is not required to pay any additional amount if price of the model purchased goes up from July. This is valid for all models till the end of this month."
Market experts take a note that the prices of vehicles at the more premium end of the mark to moderate.
The GST Council has decided on levying a uniform tax rate of 28% on all petrol and diesel vehicles. Besides, small petrol cars (less than 4 meters in length) will attract additional cess of 1%, small diesel cars an additional cess of 3% and larger vehicles a cess of 15%.
