Lately many important decision were taken in the 37th meet of GST Council which were being implimented from yesterday. In the meet, the GST Council decided to reduce the cess on the 10 to 13 seater petrol and diesel powered vehicles, which come under purview of 28 percent GST. As a result, price of cars in this segment has reduced. Now cess rate on the petrol powered 1200cc cars has been reduced by 1 percent whereas the diesel powered 1500cc cars has been reduced by 3 percent. The existing cess rate on both types of cars is 15 percent whilst the GST rate is 28 percent.
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These Popular Car Price will be Reduced
After the Central Government removed the corporate tax on cars, Maruti has reduced Rs.5000 on the ex-showroom price of selected car models. These popular models include Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Swift Dezire Diesel, Vitara Brizza, and S Cross. Apart from these cars, there is no price cut on other cars of the company such as Swift, Dezire and Baleno petrol models.
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Here we must say that this price cut does not include the promotional offers running for the festive occassion. While the automobile sector is going through recession for the last 10 months, this price cut is assumed to hike the number of sales. But result is yet to be known.