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BMW India Fastest To Pass On GST Benefits To Customers
As the Government of India provides details about the new GST structure, luxury cars in the country are likely to be cheaper. BMW India wants to be the fastest to offer benefits of GST to customers.
The details of the Goods and Services Tax GST's taxation brackets, which is set to be effective from July 1, 2017, was not clear how it will impact the cost of both two-wheelers and four-wheelers until a few days back.
However, there is a lot more clarity about how it will affect the automobile industry in India. Firstly, the GST on all passenger cars is fixed at 28 percent. Additionally, sub 4-metre petrol cars (under 1.2-litre) and diesel (under 1.5-litre) will attract 1 and 3 percent cess respectively.
Cars with wheelbase above 4-metre will be taxed 28 percent, and an additional 15 percent cess will be charged. This will translate into a slight drop in prices of luxury cars in India. And BMW India wants to lead from the from the front and pass on the benefits to customers.
BMW India is calling it "preponed GST benefits", the German carmaker's dealers in the country are offering a host of benefits across BMW models available in India.
Under the offer, available until June 2017, customers can avail the below benefits:
- 1. Interest rate of 7.90 percent
- 2. Complimentary service and maintenance
- 3. Complimentary Insurance
The above benefits are subject to terms and conditions, are available on particular models only and may differ from each model. Also, the service and maintenance package is applicable for three years and up to 40,000 km only.
Currently, the tax structure for SUVs and cars with 1.5-litres or more are subject to 41.5 to 44.5 percent taxes. The new 28 percent GST plus 15 percent cess amounts to 43 percent, which will impact the overall pricing of luxury cars in India.
It will not be long before the prices of luxury cars in India comes down.
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