GST on luxury car: Mercedes, BMW, Audi may look low in price; Check the cuts at a potential price

On Wednesday, the GST Council announced a large tax repair, Diwali came early for 1.4 billion customers and left only two slabs and reduced prices of more than 400 goods. The products needed according to ‘Next-Regional’ reforms will be cheaper, while luxury cars have been kept in ‘special slabs’ that attract 40% tax rates. The removal of compensation for the earlier 20-22% luxury car will provide relief to high-end vehicles. In the past, buyers of brand premium cars like Mercedes-Benz, Audi and BMW were paying up to 50% of the total tax. According to the new structure, these vehicles will now have to face 40% of the flat, which will make the buyers more attractive.

The GST change is part of the infection in “GST 3.0”, a simplified two-slab system is 5% and 18%, in which a special 40% slab is reserved for sin and luxury goods. These reforms also include cancellation of the expected compensation cess by October 1 October, which will facilitate the compliance of manufacturers and vendors.

Read more: New GST rate list 2025: Navratri, full list of items with effective modified rates from September 22

The luxury car was subject to the compensation of 20-22% at the top of 2% GST according to the previous classification. Under the new structure, these vehicles will now be taxed on 40%flat and translated into a savings of 8-10%.

Changes in the top model’s prices

Note: These prices are based on mathematics by assuming 10% of the reduction after moving these cars to 40% GST slab. The prices are approximately and based on the prices of the former showroom. Check your closest showroom to understand the changes.

India’s luxury car market

The luxury car currently has more than 1% share in India – the lowest in larger economies. The country, however, is one of the most billionaires worldwide, which offers the possibility of moderate to long -term growth, industry experts told ET.

Read more: GST 1. General Question: Which of the recently cheaper and what items became expensive? From insurance to gold to cigarettes, all new cost information here

According to the Night Frank’s major study, Night Frank’s Night Frank’s Night Frank, the number of Ultra-Hi-Net-Worth Person (UNWIS) is seen in any country, between 223 and 2 Between. The number of ultra-rich Indians in 228 is likely to increase from 1%to 1, 90, 90 in 228. After India, China (47%), Turkey (95.9%) and Malaysia (%35%) will be reported.

How will GST reforms help India?

Part of Modi’s widespread strategy to increase India’s self-reliance during the increasing protection of the world is being criticized as financial selfishness of high domestic use. Trump doubled the prices on Indian goods last week as a punishment for buying Russian oil.

GST cut is “steep towards self -reliance” and will help both consumers and industries, Commerce Minister Piesh Goyal said at a program in New Delhi on Thursday. He also urged the companies to give the benefits of low taxes to consumers.

City Group Inc. It is estimated that the combined 50% rate is at risk of decreasing 0.6-0.8 percent for India’s annual GDP growth. At 50%, the highest rates in Asian countries, Indian exporters are afraid of fear and they have warned of losing jobs.

Sitharaman said that GST reforms did not affect the confusion and will have a “very positive” effect on India’s GDP.

“We believe that GST is not a stable situation – when the rates fall, the uproar increases,” said Srivastava, Revenue Secretary. “We expect people to come out and buy more when the tax is low.”