Planning to buy a new car? Are you confused whether you should buy your dream car before or after GST implementation? Check out this article to know when you should buy a car – before or after GST.
We are just a few days away from the implementation of the GST or the Goods and Service Tax in our country. The implementation of GST – a unified taxation system is one of the biggest steps taken by the Government of India to strengthen the Indian economy. Currently, there is a very complex taxation system which is different in every state. The Goods and Service Tax aims to replace the existing complex and multiple state and central taxes with one single tax structure across India.
With the implementation of GST, there are various speculations regarding the increase or decrease in the prices of various items. As a result, many market sectors are already running Pre-GST or stock clearing offers. The electronics and apparel shops and dealers are trying their best to sell as much as they can and clear up their stock before the GST implementation.
The Indian automobile industry is also not very behind to offer amazing discounts and offers. Almost every two-wheeler and four-wheeler automobile brand is running a high-level marketing campaign with Pre-GST offers. As a result, the people planning to buy a car in this month or maybe within two to three months are confused whether they should buy a car in this month or after GST implementation.
What will be the impact of GST on Indian Car Industry?
Going with the official data and information available till date about the GST single taxation system, it can be clearly stated that the luxury and SUV car segment is going to benefit the most after the implementation of GST. The prices of high-end luxury and SUV cars are going to have huge price cuttings from 1st of July. It can be speculated that big SUVs like the Toyota Fortunes may get a price cut of more than Rs.1 lakh after GST comes in effect.
The small car segment however is expected to get a little expensive after the GST implementation. The prices may go up by 1% or 2% for small cars. The Finance Minister of India, Arun Jaitley has confirmed in an interview that the price of small cars will remain more or less the same, which can be a sigh a of relief for small car buyers in the future.
On the other side, the mid-sized car segment with cars like Honda City and Maruti Suzuki Ciaz isn’t going to have any impact post-GST. The prices of this segment will remain same. However, one should note that mid-sized cars with hybrid technologies will get expensive since the proposed GST on hybrid cars is the same as of other petrol/diesel cars. Cars with hybrid technology are slapped with an excise duty of 12.5% instead of 24% or 27%. Post-GST implementation, the hybrid cars will also fall in the tax slab of 28%.
When you should buy a car?
Well, if you are planning to buy a high-end luxury car like Jaguar XJ or an SUV like Toyota Fortuner or Range Rover Evoque, we would suggest you to wait for July to arrive as Post-GST benefits can spice up your car buying experience with lots of savings. And if you are planning to buy a small hatchback or mid-sized sedan or SUV, you should have a look at the exciting Pre-GST offers available in this month. You might end up in getting a lot of free car accessories and great savings offered by the car dealers.
Pre-GST Discount Offers* on Cars
Let’s have a quick look at some of the Pre-GST discount offers by the top automobile brands in India.
Maruti Suzuki Alto – Rs.35,000
Maruti Suzuki Swift (hatchback) – Rs.25,000
Maruti Suzuki Ciaz – Rs.45,000
Maruti Suzuki S-Cross – Rs.45,000
Hyundai Verna – Rs.90,000
Hyundai Santa Fe – Rs.2.5 Lakhs
Hyundai Eon – Rs.45,000
Hyundai Grand i10 – Rs.73,000
Honda Brio – Rs.14.500
Honda Amaze – Rs.50,000
Honda Jazz – Rs.17,000
Honda BRV – Rs.60,000
Mahindra & Mahindra
M&M Scorpio – Rs.23,000
M&M XUV500 – Rs.90,000
M&M KUV100 – Rs.72,000
M&M TUV300 – Rs.61,000
Ford EcoSport – Rs.30,000
Ford Figo & Aspire – Rs.10,000 to Rs.25,000
Nissan Terrano – Rs.80,000
Nissan Micra – Rs.25,000
Nissan Sunny – Rs.30,000
*these are the discount offers on the above mentioned cars, not the actual price of the cars.
Which car are you planning to buy? Will you wait for GST to come into effect or you will buy a car before the GST implementation? Share your comments and thoughts in the section below.