Goods and Service Tax (GST) has brought rejoice for the car buyers in India. While the conventional customers are enjoying significant price cut on various models, those who are willing to buy a supercar or an ultra-luxury car will feel a pre-season festivity, especially in Mumbai.
The Maharashtra state government has raised the one-time registration tax on private two- and four-wheelers by 2 per cent to offset the loss of revenue, following the repeal of octroi and local tax post-GST.
However, the central government has capped the tax amount on the high-end CBUs at just Rs 20 lakh. With effect to this change, some of the cars costing over Rs 5 crore will get cheaper by over Rs 1 crore.
For example, the Lamborghini Aventador Roadster LP 700-4 comes with an ex-showroom price tag of around Rs 5.64 crore. In the previous tax system, the car was attracting 20 per cent (Rs 1.13 crore) road tax along with 4.5 per cent (Rs 25.38 lakh) Octroi in Maharashtra, making the overall cost over Rs 7.2 crore.
With the new tax system in effect, you have to pay just Rs 20 lakh against the sum or both these taxes, saving more than Rs 1.18 crore. Now, that much is enough to buy another mid-sized luxury car, such as the Jaguar XJ or a top-spec Mercedes-Benz E-class.