GST bites as Honda, Fiat increase price of cars post hike in cess
Post hike in the cess announced by the GST Council, automakers have revised prices on some of their vehicles.
Key Highlights
- Fiat and Honda revised prices on its models.
- The revised prices have already come into effect this week.
- GST Council has suggested hike in cess up to 7% on some vehicles increasing the GST incidence on these cars.
Indian car makers have increased prices of their vehicles following the hike in cess announced by the Goods and Services Tax (GST) Council earlier this month.
Two car manufacturers – Fiat and Honda have already revised the prices on their vehicles. Fiat has hiked the price up to 130% on some vehicles.
“Honda Cars India Ltd. (HCIL) leading manufacturer of premium cars in India, announced an increase in the price of its models - Honda City, Honda BR-V and Honda CR-V. The revised prices became effective from 11th September 2017 due to the additional compensation cess in GST,” Honda said.
Revised prices are as follows:
“FCA India announces new prices for its Jeep and Fiat range of vehicles following the increase in Cess implemented by the GST Council. The new prices mentioned below are applicable to the entire range and are effective from September 15, 2017,” the company said.
- FIAT price increase: Rs 9,000 to Rs 14,000
- Jeep Compass price increase: Rs 21,000 to Rs 72,000
- Jeep CBU price increase: Rs 275,000 to Rs 640,000
The GST Council on September 9 decided to hike cess on mid-sized cars by 2% taking the effective GST rate to 45%.
On large cars the cess has been hiked by 5% taking the total GST incidence to 48% and 50% GST on SUVs inclusive of 7% hike in cess.
The increased GST rates will come into effect from Monday.
Also Read:
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
07:28 PM IST