CA Akshay Kumar Jain

CA Akshay Kumar JainThe country is moving rapidly towards the implementation of the Goods & Services tax (GST) and the GST Council has already fixed the rates for more than 1,000 items on 18 May 2017, and today on services.

Under the new GST structure, cars will be subjected to a standard 28 % tax rate and  additional cess between 1 to 15%.

Impacts

Small Cars (Alto, Celerio etc.) Sedan & Suvs (Honda City, Creta , Ciaz etc.) Luxury Vehicles (Mercedes-Benz, BMW, Audi, Jaguar etc.)
Before GST After GST Before GST After GST Before GST After GST
Excise Around   12.5% GST 28% GST 28% GST 28%
VAT & Other Levies

14 to 16 %

Cess 1 to 3% Cess 15% Cess 15%
Total Around 26.5 to 28.5% Total Around 29 to 31% Total Around  41.5% to 44.5% Total 43% Total Around 50% Total 43%
Changes Increase Either slightly  Increase or decrease (Minor Impact) Decrease

GST RATE & Compensation Cess SCHEDULE FOR GOODS

[As per discussions in the GST Council Meeting held on 18th May, 2017]

(Chapter87-Vehicles other than railway or tramway rolling – stocks, and parts and accessories therof)

S.No. Category GST Rate Cess Total GST
1 8713 Carriages for disabled persons, whether or not motorised or otherwise mechanically propelled. 5% 0

 

5%
2 Tractors (except  road  tractors for semitrailers of engine capacity more than 1800 cc) [8701]  12%

 

0

 

 

12%
3 Electrically operated vehicles, including two and three wheeled electric motor vehicles. 12% 0 12%
4 Bicycles and other cycles (including delivery tricycles), not motorised [8712], 12% 0 12%
5 Parts and accessories of bicycles and other cycles (including delivery tricycles), not motorised, of 8712 [8714] 12% 0 12%
6 Self-loading or self unloading trailers for agricultural purposes [87162000] 12% 0 12%
7 Hand propelled vehicles (e.g. hand carts, rickshaws and the like); animal drawn vehicles  [8716 80] 12%

 

0 12%
8 Cars for physically handicapped persons [8703] 18% 0 18%
9 Refrigerated motor vehicles [8704] 18% 0

 

18%
10 8702 Motor vehicles for the transport of ten or more persons , including the driver. 28% 15% 43%
11 8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons and racing cars [other than Cars for physically handicapped persons]. 28%
Sub category Cess Rates
Small Cars (length < 4 m ; Petrol<1200 cc ) 1%
Small Cars (length < 4 m ; Diesel < 1500 cc) 3%

 

Mid Segment Cars (engine < 1500 cc) 15%
Large Cars (engine > 1500 cc) 15%
Sports Utility Vehicle (SUV) 15%
Sub category Cess Rates
Small Cars (length < 4 m ; Petrol<1200 cc ) 29%
Small Cars (length < 4 m ; Diesel < 1500 cc) 31%

 

Mid Segment Cars (engine < 1500 cc) 43%
Large Cars (engine > 1500 cc) 43%
Sports Utility Vehicle (SUV) 43%
12 8704 Motor vehicles for the transport of goods [other than Refrigerated motor vehicles]. 28%   28%
13 8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete-mixer lorries, road sweeper lorries, spraying lorries, mobile workshops, mobile radiological unit) 28%   28%
14 8706 Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705. 28%   28%
15 8707 Bodies (including cabs), for the motor vehicles of headings 8701 to 8705. 28%   28%
16 8708 Parts and accessories of the motor vehicles of headings 8701 to 8705. 28%   28%
17 8709 Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods; tractors of the type used on railway station platforms; parts of the foregoing vehicles. 28%   28%
18 8710 Tanks and other armored fighting vehicles, motorized, whether or not fitted with weapons, and parts of such vehicles. 28%   28%
19

 

8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without sidecars; side-cars. 28%
Sub Category Rates
Motorcycles (engine >350 cc) 3%
31%
20 8714 Parts and accessories of vehicles of headings 8711 and 8713. 28%   28%
21 8715 Baby carriages and parts thereof. 28%   28%
22 8716 Trailers and semi-trailers; other vehicles, not mechanically propelled; parts thereof [other than Self-loading or self unloading trailers for agricultural purposes, and Hand propelled vehicles (e.g. handcarts, rickshaws and the like); animal drawn vehicles] 28%   28%
Note that 15% cess will also be applicable on

Mid Segment Hybrid Cars (engine < 1500 cc)

•Hybrid motor vehicles > 1500 cc

•Hydrogen vehicles based on fuel cell tech > 4m

(CA Akshay Kumar Jain, Contact: +91-99-5005-4004, Email: akshayjain1793@gmail.com)

More Under Goods and Services Tax

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Category : Goods and Services Tax (3055)
Type : Articles (12890)
Tags : goods and services tax (1621) GST (1205)

2 responses to “GST Impact on your next purchase of CAR”

  1. Venkat Raghavendra says:

    The compensation Cess will be charged on the taxable value or on the Taxes. Whether this compensation Cess is eligible for credit.

  2. JADHWANI C P says:

    WHY EXPORT RELATED GST ISSUES / HIGHLIGHTS ARE NOT COVERED TILL TODAY ???? THANKS JADHWANI

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