The 'next-generation' GST 2.0 aka GST Rationalisation has come into effect in India. With this, prices of almost everything have dropped. In his address to the nation, PM Modi announced the launch of “GST Bachat Utsav” (Festival of Savings), effective from September 22, under which GST slabs have been simplified and many essential goods moved to a lower bracket.
Notably, with India into the festive season, buying and selling is expected to grow, especially with Diwali coming soon.
Dinesh Singh, Sri Ganesh Finance, Jalandhar, informed True Scoop that the the impact of GST 2.0 will start to be witnessed from the next month. Automobile sector is likely to see a major boom in the coming months.
Now, the question arises which cars have seen biggest price drops after GST 2.0 has kicked in? Continue reading below-
Talking to True Scoop, Dinesh Singh, said, "The impact of GST rationalisation will be visible from next month. During Diwali, the market will boom and growth will be very fast.
The biggest question is, which cars have seen the maximum price drop? While every showroom has its own variation, one thing is clear, the more expensive the car, the higher the price cut under GST 2.0.
In Punjab, Fortuner is one of the hottest-selling cars and its ex-showroom price has dropped by up to Rs 3 lakh. BMW X5 and Defender have both seen a reduction of up to Rs 8 lakh. Range Rover Sport has come down by Rs 10 lakh, while Land Cruiser prices have reduced by up to Rs 16 lakh.
For hybrid cars like Innova, there hasn’t been much impact. In the ultra-luxury segment, cars priced around Rs 5 crore have seen a massive reduction of upto Rs 30 lakh, including models from BMW and Range Rover."
With effect from September 22, the new GST rates have reduced the tax to 18 per cent for gasoline vehicles up to 1,200cc and under four meters in length and diesel vehicles up to 1,500cc and under four meters.
Previously subject to 50 per cent GST, larger vehicles will now only be subject to 40 per cent. The tax rate for two-wheelers up to 350cc has been lowered from 28 per cent to 18 per cent.
To be precise, cars with petrol engines up to 1200cc or diesel engines up to 1500cc, and a length of no more than 4000 mm, are classified as small cars. These vehicles will now be taxed at 18% GST instead of the previous 28%, meaning models like the Alto and i10 will become more affordable.
As per reports, Maruti Suzuki Cars have become one of the cheapest in India. As per CarDekho, Maruti Alto K10 standard version is priced at Rs 3.70 lakh, Maruti Suzuki S-Presso standard version's new price is Rs 3.50 lakh, Maruti Swift LXi variant is priced at Rs 5.79 lakh.
Addressing a press conference at the BJP headquarters, Sambit Patra said the reforms had triggered record-breaking sales across the automobile sector, alongside substantial savings for ordinary households on essential goods and medicines.
“Maruti Suzuki, a leading name in the sector, has broken its 35-year record today. Hyundai showrooms also witnessed their highest sales in five years. On the very first day itself, Maruti delivered 25,000 cars,” Patra said.
He added that dealerships across the country remained open till midnight to complete deliveries, with over 80,000 inquiries registered and bookings touching 75,000.
“Tata Motors received 25,000 inquiries and delivered 10,000 cars on the first day itself (September 22). Whether it is Mahindra or others, customer enthusiasm has been like a festival,” he remarked.
With Inputs IANS
