GST bites as Honda, Fiat increase price of cars post hike in cess

Key Highlights

• 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:

Why hike in GST cess will have a limited impact on sales of mid, large cars, SUVs