Sunday, 17 December, 2017
Update
   Black Christmas for 700 home guards   GST, mining effect: Govt stares at ` 13K cr debt   Traffic woes continue to haunt Margao   Vasco RTO without vehicle for the last 5 months   Digambar withdraws anticipatory bail petition in mining case   Water-starved Kadamba locals to hold protest   Opinion Poll stalwarts to come alive at ‘Asmitai Enclave’

GST drives automobile sector into uncertainty

There is quite a bit of uncertainty prevailing in the automobile market in terms of how the upcoming goods-and-services tax (GST) will affect the prices of cars from July 1.

16th June 2017, 07:09 Hrs

the goan I network
PANAJI

To deal with this situation, different car manufacturers have different strategies. First of all, why is the uncertainty at the moment?  
Broadly, there are four taxes on any car – excise (on manufacturing), value-added-tax and road-tax (both on sale), custom duty (if any part is being imported).  
But, apart from these taxes, there are several other levies like octroi, which vary from state to state. As of now, there is no input-tax-credit on custom duty and excise. But, after GST comes into force from July 1, excise, custom duty and value-added-tax (VAT) will be absorbed by GST.  
And, GST works on the principle of input-tax-credit. This means that dealers will be able to get a credit on the whole of custom duty, excise and VAT after GST will be implemented, as all these taxes will be subsumed by GST.  
But, road tax will not be absorbed by GST and will continue to be levied on cars and other automobiles. Overall, the tax structure of automobiles market will go through a total overhaul. This has resulted in uncertainty in the market.  
GST Council has announced a tax rate of 28% on all automobiles. But, over and above this, there will be additional cess too. In nutshell, it is very difficult to say as to what will happen to the price of various cars once GST comes into being from July 1.  

Top News

GST, mining effect: Govt stares at ` 13K cr debt

n Instructions issued not to report to work on weekends n Stand to lose ` 6,320 in December salary Read more

Traffic woes continue to haunt Margao

Successive govts have only been promising ‘ultra-modern bus stands’ and ‘bus port’ Read more

Vasco RTO without vehicle for the last 5 months

Staff shortage, erratic network, cramped space has added to woes Read more

Digambar withdraws anticipatory bail petition in mining case

Special team assures 48-hour notice prior to his arrest Read more