Luxury Cars to become cheap under Goods & Service Tax (GST)

Luxury Cars to become cheap under Goods & Service Tax (GST)

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Mumbai : German car company Mercedes-Benz India announced its plan to pass on the Goods and Service Tax (GST) benefits to customers by bringing down the transaction price of its cars. Prices of the entire ‘Made in India‘ product portfolio of the company will go down by 4 per cent on a ‘weighted average’ with immediate effect. This translates into a reduction of Rs. 1.5 lakh to Rs. 7 lakh on the on-road price of all the India-made Mercedes cars. The downward revision in prices will cover the difference in current ex-showroom prices and post GST ex-showroom prices.

The company has stated that the price reduction will vary from state to state with a difference of almost 2 to 9 per cent. The actual final price cut will depend on the current tax structure and local body taxes compared to new GST structure of each particular state. As mentioned before the benefits will cover all Mercedes-Benz cars that are currently made in India, and the list includes the – Mercedes-Benz CLA, GLA, C-Class, E-Class, S-Class, GLC, GLE, GLS and Mercedes-Maybach S 500.

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Interestingly, Mercedes-Benz India isn’t the only carmaker who has decided to offer customers such benefits. Many manufacturers are still waiting for some more clarity on the new GST rates, while luxury carmakers are trying to seize this opportunity to spice up the market by announcing special benefits. BMW, for instance, has announced a limited period offer which includes – reduced rate of interest at 7.9 per cent, complimentary 3 years of service and maintenance, assured buyback guarantee for up to four years and one-year complimentary insurance; all in addition to the GST benefits.

On the other hand, Jaguar Land Rover (JLR) has slashed the prices of three of its models in India – the Range Rover Evoque, Discovery Sport and the Jaguar XE sedan (petrol), by up to Rs. 4 lakh. The revised prices of the the models are – Range Rover Evoque – Rs. 45.85 lakh, Discovery Sport – Rs. 43.80 lakh and the Jaguar XE sedan (petrol) – Rs. 37.25 lakh (all ex-showroom, Delhi).

Source : NDTV


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