While the GST Bill or The Goods and Services Tax Bill was tabled at the RajyaSabha on the 3rd of August 2016, all industries in India seem to be anxiously awaiting to analyse the pros and cons on the implementation of this tag regime.
The GST Bill if passed would be one of the acclaimed economic reforms of India and another golden feather on the cap of Modi's Government. The Indian market will be united as one thereby facilitating easier inter state movement of goods and reduced transaction costs of business. Some of the benefits for the auto sector have been noted down:
* The GST Bill would streamline all central taxes like the excise duty, service tax etc as well as the state level indirect taxes like the VAT, c etc. on all vehicles, to one simple tax, the GST.
* It is anticipated that the Automobile sector will be the most benefited with this Bill , as tax cascading will be completely removed with this implementation thereby reducing the production cost of vehicles as only one tax needs to be paid by the company ,instead of various taxes at different stages of production.
* As GST will be a destination based tax, all import goods would be charged with the same tax as domestic goods whereas export charges will be zero.
* The lesser production costs of vehicles would result in slashed prices for consumers.
* The new tax reform would once again encourage the growth of India's GDPas the automobile sector contributes a fair share towards it. It is expected that business can be carried out at much more ease than before.
* The 'One market' theme will enable quicker transport and delivery of vehicles between states as the new bill removes all the multiple barriers or checkpoints to pay various taxes like the entry tax, purchase tax, VAT etc. that existed until now. This eventually could lead to better efficiency and more profits.
* Currently the small cars are being charged with a total tax of around 28% while the mid size ones are charged with 39%. With the implementation of the GST, the taxes would come down to 18% which will be a huge relief for the automobile industry.
The GST Bill is awaiting approval by the state assemblies and the honourable President. It is expected to be implemented from 1st April 2017 on approval. India will be soon joining the list of countries that have already executed this tax regime like New Zealand, Australia and few other countries in Asia.
2018 Ford Aspire was launched yesterday in India at a price of Rs.5.55 lakh (Ex-showroom Delhi). The updated version of the brand’s best-selling compact sedan comes with a new 1.2L three cylinder TiVCT Dragon series petrol engine that makes 96bhp as reported earlier on our Trending News updates.
Indian Auto market witnessed the launch of two affordable sports cars back to back this week. Aston Martin Vantage was launched at a price of Rs.2.95 crore while Ferrari Portofino was launched at Rs.3.50 crore in the country.
• Maruti Suzuki Ignis to be launched on 13th January 2017
• Addressed as a premium urban crossover, Ignis comes with a lot of unique features for the Indian specific model
• Available in both Petrol and Diesel trims and expected to be priced around Rs.5-7 lakh approximately
Hindustan Motors has signed an agreement with Peugeot, selling Ambassador Brand and certain related rights at a sum of Rs.80 crore. It also said that the proceeds of the sale will be used to clear all pending dues of employees and lenders.
Maruti Suzuki has launched the New Swift 2017 in Japan and it is just months away to the Indian launch. It is expected to reach India in the second half of 2017 and there has been some real buzz about it for quite some time now.
The unique and most loved car since 2005 has chosen a new avatar for the 2017 launch and is being awaited by the enthusiasts all over.
Honda WR-V (Winsome Runabout Vehicle), the sub compact crossover was unveiled at the 2016 Sao Paulo Motor Show in Brazil. Now, Honda is about to launch the same here in the country on March 16th, 2017. As WR-V rolls here, India will earn the name for being the first country to produce and launch it in the world. Previously named as the Jazz Twist, this crossover is based on the company’s best seller Honda Jazz but is slightly longer and taller than the latter.