The GST structure has replaced the central excise duty and service taxes that are collected by the central government. The segment that benefits from the newly announced GST structure are the large vehicles with a displacement greater than 1,500cc as well as SUVs with a length of more than 4 metres. This category of vehicles will attract 15 per cent cess over the peak rate of 28 per cent making it a total of 43 per cent. Presently, the central excise of 27 per cent is applied along with a value added tax (VAT) of 12.5 to 14.4 per cent. There is also state taxes, octroi and infrastructure cess. The total tally of these taxes goes to up to 45 per cent. Here is a detailed explanation of how it affects the Indian automobile sector. Here is what Audi has to say about this topic.
"We welcome the GST. Hopefully, this will be a new and exciting phase of the luxury car business. The new realigned prices offer great opportunity to expand the market and widen our customer base," said, Rahil Ansari, head, Audi India.