The recently announced GST cess update will be increasing the final taxes applied across the segment. According to the new GST cess update, a hike of 2 per cent has been announced on mid-size sedans. This takes the total taxation on mid-size sedans to 45 per cent which includes the 15 per cent applied previously along with the 28 per cent cess. With the new tax structure and the additional premium, the prices of the mid-size sedans have gone back to the pre-GST phase. Here are some of the sedans that have been affected by the GST Cess update.
The new GST cess update is still considerably lower than the 10 per cent flat increase in the cess, that was predicted by the automobile industry. The government has left small cars, electrics and hybrids unaffected for they occupy a major share in the automobiles sold in the country. According to the definition, a small car has a length of less than 4 meters and comes with a petrol motor with a displacement of less than 1,200cc or a diesel motor with a displacement of less than 1,500cc. Additionally, they are also considered more fuel efficient than the larger vehicles and thus the lower hike compared to the SUVs and luxury cars.