GST effect: A unified Indian market will be beneficial for the automobile sector, Suzuki India
The timing for those who have been planning to get a two-wheeler couldn't get any better. Almost every two-wheeler manufacturer has announced reduction in prices to pass on the benefits of GST to its customers. Earlier we told you about TVS and now it is Suzuki Motorcycle India.
The motorcycle manufacturer stated that a unified Indian market will be beneficial for the automobile sector as it would have a levelling impact. There will be less price variations across the nation. Under the GST, consumer and premium segment vehicles will witness a 2 per cent decrease in taxes. Suzuki will be passing on this benefit onto its customers in the form of reduced prices. The company stated that the vehicles that fall under the 28 per cent tax slab will see a reduction in price, making them more accessible for the prospective customers.
The collective tax levied previously included 12.5 per cent excise duty, 12.5 per cent VAT, 2 per cent CST (Central Sales Tax) and 1 per cent NCCD (National Calamity Contingent Duty). This made a total of approximately 30.2 per cent. The GST structure has replaced the central excise duty and service taxes that are collected by the central government. Accordingly, the duty of 30.2 per cent has been reduced to 28 per cent for two-wheelers with a displacement less than 350cc.
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