What is Goods and Services Tax?
GST is one indirect tax for the cumulative nation, which will make India one unified common publish. GST is a single tax in the report to the supply of goods and facilities, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be to the side of in the subsequent stage of value integrate together in crime, which makes GST in the mean of fact a tax on your own upon value append at each stage. As a result, genuine consumers will give New Tax to the last seller of the supply chain system.
One Nation | One Tax | One Market
Goods and Services Tax (GST) is a revenue enhancement that was introduced in the Republic of India on 1st July 2017 and was applicable throughout India that replaced multiple cascading taxes levied by the central and state governments. The GST is ruled by a Council and its Chairman is that the government minister of the Republic of India.
There are four slabs fixed for GST Rates:
Under GST, merchandise and services are taxed at the subsequent rates, 0%, 5%, 12%, 18% and 28%. Additionally, a Cess of alternative rates on prime of 28% GST applies too few things like aerated drinks, luxury cars, and tobacco product. It is India’s first planned tax infrastructure to plan and form in exchange for integrated taxes. It’s a dramatic change in the country’s economy and the rearrangement of taxes. It can be said that the country’s tax structure is more stable and full of treasures.
Items under Exempted(0%) Slab:
Items that do not have to pay any taxes—Fresh vegetables and fruits, Milk, Eggs, Curd, Buttermilk, Un-branded Rice and Wheat, un-branded Flour, Puja Items. These are completely tax-free.
Items under 5% Slab:
The items that will be taxed for 5% tax are those— Frozen Vegetables and Fruits, branded Wheat and Rice, branded flour, hand-made safety matches, cotton, cotton fabrics, Footwear below Rs.500.
Items under 12% Slab:
The items that will be taxed for 12% tax are those–Mobile phones, Ayurvedic products, Butter, Cheese, Dry fruits.
Items under 18% Slab:
Beedi wrapper leaves, Biscuits, man-made fiber, Hair oil, Soap, Toothpaste, and Footwear exceeding Rs. 500.
Items under 28% Slab:
The items that will be taxed for 28% tax are those–LED TV, AC, Cars, Beedi and Tobacco products, Cement.
Tax Rate of Old GST on Car:
Goods and Service Tax has replaced and merged all multiple states and central taxes like Excise Duty, Infrastructure Cess, VAT Duty, CST and NCCD Tax as One Entity called GST. The GST implementation has brought some good news for all new car lovers.
It should along with being noted that there will be some magnification in insurance costs and restructure EMIs as sustain tax has been increased from 15 % to 18 %. Also, cars belonging to the small and mid-size segment were avowed to profit slightly costlier than in the back. However, prices of most Maruti Suzuki cars belonging to these segments have either arrive beside or remained as is.
Worth noting is the fact that hybrids are now classified as luxury cars lonesome and attract 43%. The buildup in taxes will cause offense hybrid vehicles the most in cities considering Delhi where these vehicles in the back enjoyed lower VAT rate 5 % and excise duties 12.5 %.
Cars are considered as luxury goods knocked out GST consequently they slip in the 28 % tax slab. Over and above, based regarding vehicle classification there is an additional Cess of 1%, 3% or 15 %.
Old Tax Rates of GST (on 1st July 2017)
Type of Cars
Net TAX %
Price Hike of Cars in SUV, Mid, Luxury Segment:
New GST Cess Hiked on Car segment today. The Cabinet has firm its recognition to the tax slab revision so the prices of SUVs and luxury cars are bound to enhancement. The appendix in cess will be applicable from a well ahead decided, which the GST Council will pass judgment in their September 9, 2017, meeting. The GST in the region of Luxury cars and SUVs will now be set at 53 % on the other hand of the existing 43 %.
The New GST Council Has Recommended 25 % as The Max Cess For SUVs & Luxury Motor Vehicles
Old GST Structure
New GST Structure
Base + Cess
Base + Cess
28% + 15%
28% + 25%
1. Small Size Car – Cars below 4-meter length and not greater than 1.2-litre petrol engine or a not greater than the 1.5-litre diesel engine.
2. Mid-Size Car – Cars over the 4-meter length and not greater than 1.5-litre either a petrol or a diesel engine.
3. Luxury Car – Cars over the 4-meter length and greater than 1.5-litre either a petrol or a diesel engine.
4. SUV Car – Cars over 4-meter length, 170mm ground clearance and greater than 1.5-litre either a petrol or a diesel engine.
5. Hybrid Car – Cars over 4-meter length, 170mm ground clearance and greater than 2.0-litre or greater diesel engine.
GST Registration (click on below link) ::