GST effect - Luxury car prices down
Posted on: 09/Jul/2017 10:05:03 AM
Following the implementation of the GST, there are prospects of the luxury car prices going down by up to Rs. 2.25 Crores. As compared to the previous rates, in the GST system, the price of the luxury car is down by 20%.
As per the ex-showroom prices in Mumbai, Lamborgini, the luxury model car worth Rs. 5.64 Crores, was sold at Rs. 7.20 Crores before GST. The taxes amounted to Rs. 1.38 Lakhs. However, after GST, this tax part has come down to just Rs. 20 Lakhs.
In a similar trend, the prices of brands like Mercedes-Benz, Jaguar are also down. The tax for another luxury model, Bugatti Veyron, is down by 20%. So, there are prospects of a price reduction of Rs. 2.74 Crores in the total price of Rs. 12 Crores. At the same time, the insurance for luxury cars is up by 3%.
