Connect with us

Auto

Hike in GST cess makes cars expensive

Published

on

cars

NEW DELHI, Aug 30: The Cabinet today increase the cess on mid-size, large cars and SUVs from 15 per cent to 25 per cent under the new GST regime.

With GST prices of most SUVs were cut between Rs 1.1 lakh and Rs 3 lakh which will increase in cess, the cuts will be reversed.

The GST council, the apex tax rate setting body under the Goods and Services Tax (GST) regime raised the cess with the amedment to the Schedule of section 8 of the GST (Compensation to a State) Act, 2017.

It had approved on August 5 to raise cess on SUVs, mid-sized, large and luxury cars that had become cheaper post GST rollout on July 1.

Under GST, a cess was levied on demerit goods like cars, tobacco, and coal to compensate the loss of revenue.

Cars attract the top tax rate of 28 per cent. On top of this, a cess of 1 to 15 per cent is levied for the creation of the state compensation corpus.

The date for implementing the hike in the upper limit of the cess from 15% to 25% will be decided by the GST Council when it meets in Hyderabad on September 9.

Presently, large motor vehicles, SUVs, mid-segment cars, large cars, hybrid cars and hybrid motor vehicles attract a cess of 15 per cent over the 28 per cent GST rate.

Small petrol cars of less than 4 meters and 1,200 cc attract a cess of 1 per cent, while small diesel cars of less than 4 meters and 1,500 cc engine attract a cess of 3 percent.

GST Scenario 

GST present slab and upcoming slab rate on cars:-

Existing GST Rates Rate Classification
Petrol Cars with Engine < 1.2 Litre 28% + 1% Cess Petrol Cars for Mass Market
 Diesel Cars with Engine < 1.5 Litre 28% + 3% Cess Diesel Cars for Mass Market
 All other Cars 28% + 15% Cess All other Cars
GST Rates post New Development Rate Classification
Compact Petrol Cars with Engine < 1.2 Litre 28% + 1% Cess Compact Petrol Cars under 4 Meter
Compact Diesel Cars with Engine < 1.5 Litre 28% + 3% Cess Compact Diesel cars with Length < 4 Meter
Mid Segment Cars with Engine < 1.5 Litre 28% + 25% Cess Cars with Length > 4 Meter

Based on Existing Slabs, expected Category

 

GST Impact after increase in 10% Cess

Models Price Hike
Maruti Baleno, Honda Jazz, WRV, I20, Ford Ecosport, Maruti Brezza or Segment lower cars etc No Price Hike
Honda City, Hyundai Verna, Maruti Ciaz, Renault Duster, Nissan Terrano etc Rs 70K to Rs 1 Lakh
Mahindra XUV 500, Tata Hexa, Tata Safari Storme, Toyota Innova Crysta, Skoda Octavia, Toyota Corolla, Jeep Compass Rs 90K to Rs 1.5 Lakh
Toyota Fortuner, Ford Endevaour, Skoda Superb, VW Tiguan Rs 2 Lakh to Rs 2.5 Lakh
Audi Q3, A4, A6, BMW X1, 3 Series, GT,  Benz C, E, GLE, GLA Class Rs 2.5 Lakh to Rs 4 Lakh

 

Wefornews Bureau

Auto

Mahindra commits to become carbon neutral company by 2040

Published

on

Mahindra

San Francisco, Sep 14: Mahindra & Mahindra, India’s leading manufacturer of utility vehicles and part of the $20.7 billion Mahindra Group, on Thursday announced its commitment to become a carbon neutral company by 2040.

For this, the company will be working with Environmental Defense Fund (EDF) to meet its carbon neutrality commitment.

Mahindra & Mahindra will focus on energy efficiency and the use of renewable power to achieve this target. Residual emissions will be addressed through carbon sinks, the company said.

“We are doing our part in the global fight against climate change with this ambitious new target. Mahindra will leverage the latest technological advances and its recently announced carbon price to work towards being carbon neutral by 2040,” Mahindra Group Chairman Anand Mahindra said.

He is in this California city to co-chair the Global Climate Action Summit (GCAS) that aims to encourage all stakeholders to raise their ambition with many new possibilities emerging out of the discussions.

Mahindra & Mahindra was the first company in the world to commit to doubling energy productivity by signing on to The Climate Group’s program EP100.

“We have already seen remarkable value in reducing emissions through the EP100 program which aims to double energy productivity in our main businesses — auto, farm equipment and holiday resorts,” Mahindra told IANS.

He said science-based targets are a way of ensuring that ambition is stepped up and action is aligned to the target set by the 2015 Paris Climate Change Agreement.

Using energy efficient lighting, efficient heating, ventilation, and air conditioning, motors and heat recovery projects, Mahindra & Mahindra has doubled the energy productivity of the automotive business almost 12 years ahead of schedule, the company said.

The farm equipment business is also ahead of schedule in achieving its goal and is more than half-way there, it said.

The company was also the first Indian company to announce its internal carbon price of $10 per ton of carbon emitted to fund investments required to pursue the path of carbon neutrality.

The price was carefully arrived at on the basis of international benchmarks and an assessment of what was required to achieve the goals set by the business on energy efficiency and renewable energy.

The company has more than 10 years of experience in creating carbon sinks. It looks forward to using this experience to deal with residual emissions in a manner that is world class and follows the best established protocols.

The company is also a signatory of the science-based targets initiative which provides companies with a clear pathway for reducing emissions in line with the Paris Agreement’s goal of limiting global warming to well below two degrees Celsius above pre-industrial levels. All these commitments are helping the company on its path to go carbon neutral.

“By pledging to reach carbon neutrality in its operations, Mahindra is sending a clear message that investment in climate-smart growth is good for business. This commitment can unlock collaboration, innovation, and results,” Senior Director for Global Climate at Environmental Defense Fund (EDF) Richie Ahuja told IANS.

The EDF is a leading international nonprofit organization, creates transformational solutions to the most serious environmental problems.

IANS

Continue Reading

Auto

Driverless cars set to appear on Australian roads by 2019

Published

on

driverless-cars-australia
Photo Credit- The Pioneer

Canberra, Sep 12: Perth will be one of the first cities in the world to trial driverless on-demand cars, with a prototype vehicle unveiled on Wednesday.

Manufactured by autonomous vehicle company NAVYA, the cars will include a “chaperone” who will be able to stop the car manually at any time necessary.

The vehicles can carry up to six people and have a maximum speed of 90 kmph, although speeds are likely to be capped at 50 kmph during the trials.

Once unmanned trials are completed in 2019, registered users will be able to order a car to their destination via a phone app, similar to a regular taxi, Xinhua news agency reported.

Royal Automotive Club is responsible for facilitating the tests in Australia and Chief Executive Terry Agnew said Perth was one of just three cities in the world to be trialling the cars.

“How we move around is rapidly evolving and being able to test emerging vehicle technologies right here in Western Australia will help us adapt to these changes in the safest way possible,” Agnew said.

IANS

Continue Reading

Auto

Maruti Suzuki posts 3.4% decline in August sales

Published

on

Maruti Suzuki
Ramesh Pathania/Mint

New Delhi, Sep 1: Automobile major Maruti Suzuki India on Saturday reported a 3.4 per cent dip in sales in August as the car maker sold a total of 158,189 units in the month, compared to 163,701 units sold in the year-ago month.

“Sales during the month were adversely affected due to severe floods in Kerala and heavy rains in other parts of the country,” it said.

In the domestic market, it sold 147,700 units during August, down by 2.8 per cent from 152,000 units sold in the corresponding month in 2017.

The carmaker exported 10,489 units registering a 10.4 per cent drop from 11,701 units shipped out in the year-ago month.

It sold 114,261 units of passenger cars in the August 2018, falling by 1.4 per cent from 115,897 units sold in the corresponding month 2017.

Sales of its utility vehicles dropped by 16.2 per cent to 17,971 units in August, while vans sales were at 13,663 units, decrease by 1.9 per cent over corresponding month 2017.

However, during the first five months of the current fiscal, it posted a 12.4 per cent growth in sales to 813,037 units as compared to 723,618 units sold in the corresponding period of 2017-18.

IANS

Continue Reading

Most Popular