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From September 22, GST on cars is going to decrease, which will reduce their prices. For this reason, many customers are now canceling their sanctioned car loans.
Car loans canceled competition in banks. (Image: AI) Customers benefit, difficult for banks
A public sector bank official said that many customers are ready to pay the cancellation charge, because they will save more by buying a car at new rates. Banks are already trying to attract customers by waiving processing charge on home and vehicle loans, but GST cuts have suddenly forced customers to wait.
According to CBIC officials, if the car dealer has issued an invoice, then only the old rates will apply. But if the invoice is not yet made, then customers can take advantage of the reduced tax from September 22. This is the reason that there is currently a lethargy in the sale of vehicles. Due to Shraddha Paksha, customers are avoiding shopping. Many people are now considering taking a better version rather than an thoughtful model, because they can get a profit of up to 10 percent from new rates.
Impact on auto companies and new tax structure
The compensation cess will also end from 22 September, which will keep the cess worth about ₹ 2,500 crore stuck in the books of auto companies. Currently, the total tax increase on cars ranges from 29% to 50%, which depends on the engine capacity and length. But after the new rates, petrol up to 1,200 cc and diesel trains up to 1,500 cc will be only 18% GST. GST will continue up to 40% on large engines and SUVs. This will benefit small and mid-range car buyers the most.
Rakesh Singh is a chief sub -editor with a 14 -year experience in media and publication. There are fields of international affairs, politics and agricultural interest. Many articles written by Rakesh Singh published …Read more
Rakesh Singh is a chief sub -editor with a 14 -year experience in media and publication. There are fields of international affairs, politics and agricultural interest. Many articles written by Rakesh Singh published … Read more
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