Many automakers in India have in the recent past announced the revised prices of their model range by passing on benefits of the Goods and Tax Service (GST) that comes into effect on July 1 across the country. While luxury carmakers like Audi, BMW, Tata Motors-owned Jaguar Land Rover (JLR) and Mercedes-Benz have slashed the prices of their models by up to Rs. 10 lakh, emerging reports suggest that similar offers are also there on the models of Maruti Suzuki and Hyundai.
Although the company has not made any official announcement on the discounts of its models, Maruti Suzuki dealers are said to be giving away models like Alto, Swift and Celerio at discounted prices to boost their sales. The discounts and offers on Maruti Suzuki could run through the month of June.
According to a report of India.com, Maruti Suzuki's most popular model Alto is now being offered with a discount of up to Rs. 35,000 while its tall-boy hatchback Wagon R gets a discount of up to Rs. 30,000. Other models like Swift hatchback and Celerio are reportedly offered with discounts of Rs. 20,000 each. Apart from the price discounts, the dealers are also offering other benefits such as exchange offers and free insurance. South Korean carmaker Hyundai's Grand i10 and Eon are also said to be offered with discounts.
The new tax regime will bring down the tax on SUVs and luxury cars in India by 12 percent, while small cars are expected to see a slightly higher tax than the current tax slab. Currently, small cars with a length of under four meters and engine capacity of up to 1,200cc for petrol cars, and up to 1,500cc for diesel cars, attract a 12.5 percent Central excise duty and an additional 14 percent VAT and other taxes in the present tax regime taking the total to 27 percent. The tax slab of the small cars will see a slight raise under the GST regime with 28 percent uniform rate on cars and an additional cess of one percent.
On the other hand, the tax structure is the SUVs and luxury cars, which currently attracts 27-30 percent in Central excise duty and 14.5 percent of Vat will put it in the brackets of 43 percent, comprising 28 percent tax bracket and 15 percent of maximum cess.
Source: India.com
