New Delhi, Sep 4
The government's decision to revamp the Goods and Services Tax (GST) structure with three slabs of 5 per cent, 18 per cent and 40 per cent will turn out to be a big benefit for automobile industry and customers as the prices across the segment would go down up to 8.5 per cent, a report said on Thursday.
"In the case of internal combustion engine (ICE) and hybrid vehicles, prices of entry-level hatchbacks, premium hatchbacks, compact sedans, and sub-compact sport utility vehicles (SUVs) with having less than 1,200 cc petrol or 1,500 cc diesel engines will decline about 8.5 per cent," Crisil Intelligence said in a report.
In the automobile industry, electric vehicles will continue to be taxed at 5 per cent, while other segments have undergone a rate revision to either 18 per cent or 40 per cent.
The automotive aftermarket segment will also benefit as all components will now be brought under the 18 per cent GST slab, thereby leading to a reduction in prices of components taxed at 28 per cent by about 7.8 per cent, the report said.