Honda Cars India has increased the prices of its premium vehicles, it includes the City sedan, and SUVs BR-V and CR-V after the GST Council decided to revise the GST Cess on premium vehicles. Price increase ranges between Rs 7,003 and Rs 89,069.
The GST Council has decided to revise the GST Cess ranging from 2 to 7 percent of premium vehicles including mid-sized and luxury cars as well as SUVs. Price change on Honda cars is effective from September 11, 2017. However, Honda has not revised the prices of Brio, Amaze, and WR-V.
The Honda City witnesses a price increase in the range of Rs 7003 and Rs 18,791 based on different variants. The prices for the Honda BR-V have been increased between Rs 12,490 and Rs 18,242. As for the Honda CR-V, the hike is between Rs 75,034 and Rs 89,069.
The new tax regime under GST came into effect on July 1, 2017, in India. This led to a reduction in prices of luxury cars and SUVs, to correct the anomaly, the GST Council decided to revise the GST Cess on these vehicles and has been brought into effect from September 11, 2017.
The revised GST on mid-sized cars is 45 percent, large cars attract 48 percent, while SUVs attract 50 percent and will include vehicles exceeding the 4-metre mark and a ground clearance of 170mm.
The GST Cess on small petrol and diesel vehicle remain unchanged; this includes hybrids as well. Recently, Toyota announced the hike in prices of its vehicles as well.
While prices of premium vehicles have been increased, small petrol and diesel vehicles have remained untouched in the recent revision by the GST Council. The approach of the GST Council to leave out smaller cars will benefit the first time buyers.