The report has shown that in the current structure, passenger vehicles (PV) attract GST to 5 Cent percent to Cent Cent, as a standard is imposed on top of the GST rate of 28 percent of the GST according to the size and length of the vehicle.
HSBC has mentioned that according to the new rule, the government can consider reducing tax on small trains that tax on small trains should be taxed from 2 Cent to 5 per cent from 5 per cent to 5 per cent, while 40 “special rates” can be implemented for large cars, 40 “special rates”.
Also Read: Big GST cut can increase the demand for small cars, hatchback is now likely to attract 18% tax compared to 28%
If this change is made, small trains may appear to come down to 8 percent, while big cars can be cheaper in the range of 3-5 percent.
The report states that “this means small car prices can be reduced by 8 percent and 3-5 percent of the range for larger cars”. The report also states that all the two -wheeler manufacturers will benefit from the GST deduction, the domestic players got relatively more. However, in this situation, the government may have a result of about $ 4-5 billion in the GST collection. Although there is another discussion in the report, GST is likely to reduce GST from 28 percent to 18 percent in all types of cars.
In such cases, the cesses based on the size of the vehicle will continue and all the car will benefit about 6-8 percent. The flat is 10 percent reduced that the government reduced the revenue of about 5 to billion bills.
.