The country’s largest car maker, Maruti Suzuki, has announced a price cut on all cars in its portfolio. This price cut comes in the wake of the implementation of the Goods and Services Tax (GST) in India, from the midnight of July 1, 2017.
The company has announced that prices of Maruti cars in India have been dropped by up to 3%, after the implementation of GST. The effective reduction will vary from state to state, depending on how much VAT and other taxes were applicable under the previous taxation structure.
Must Read: How will GST affect car price in India?
With the Goods and Service Tax (GST), the Indian economy has bid farewell to over 17 different types of taxes that were previously prevalent in the industry. These taxes included state and centre level cess, excise duties and value added tax (VAT). However, all such taxes have now been replaced by a single tax – GST. This is meant to streamline the Indian taxation system, increase profits of the government, and decrease the tax burden on citizens.
The automotive industry surely appears to be a beneficiary of this new tax system. As explained in our detailed report on the effects of GST on car prices in India, taxation will come down by 2% for small cars and over 12% for large SUVs. Maruti Suzuki has thus announced that it will be passing on the GST estimates to its customers from immediate effect.
Exact revised prices of all cars in Maruti’s portfolio will be announced soon!