GST bites as Honda, Fiat increase price of cars post hike in cess
Post hike in the cess announced by the GST Council, automakers have revised prices on some of their vehicles.
- Fiat and Honda revised prices on its models.
- The revised prices have already come into effect this week.
- GST Council has suggested hike in cess up to 7% on some vehicles increasing the GST incidence on these cars.
Indian car makers have increased prices of their vehicles following the hike in cess announced by the Goods and Services Tax (GST) Council earlier this month.
Two car manufacturers – Fiat and Honda have already revised the prices on their vehicles. Fiat has hiked the price up to 130% on some vehicles.
“Honda Cars India Ltd. (HCIL) leading manufacturer of premium cars in India, announced an increase in the price of its models - Honda City, Honda BR-V and Honda CR-V. The revised prices became effective from 11th September 2017 due to the additional compensation cess in GST,” Honda said.
Revised prices are as follows:
“FCA India announces new prices for its Jeep and Fiat range of vehicles following the increase in Cess implemented by the GST Council. The new prices mentioned below are applicable to the entire range and are effective from September 15, 2017,” the company said.
- FIAT price increase: Rs 9,000 to Rs 14,000
- Jeep Compass price increase: Rs 21,000 to Rs 72,000
- Jeep CBU price increase: Rs 275,000 to Rs 640,000
The GST Council on September 9 decided to hike cess on mid-sized cars by 2% taking the effective GST rate to 45%.
On large cars the cess has been hiked by 5% taking the total GST incidence to 48% and 50% GST on SUVs inclusive of 7% hike in cess.
The increased GST rates will come into effect from Monday.