HYDERABAD: Vehicles can be bought in cheaper fare as the Goods and Services Tax (GST) is expected to effect automobile industry. Car showrooms across the city were waiting for the new price lists from companies on Monday.
“Before implementation, there was a lot of confusion among consumers over pricing. With new rates expected to rollout, we are expecting an increase in number of buyers in the next few days. Various bookings made by consumers three to four months ago will also be cleared in the new GST regime,” said R Jagdeesh, managing director of Autologic, dealer for Renault in Hyderabad and Secunderabad.
The GST council has decided to levy 28% tax on automobiles which is lower than the 30% tax that was charged by cumulating different taxes. Various automakers such as Maruti, Toyota, Hyundai and Honda, among others, have slashed prices and are expected to see a 4% dip in tax as per GST.
“I think that the prices of commodities will not rise immediately and the headache of new taxes will be borne by the manufacturer. We will have to wait to get a clearer picture on whether prices of daily commodities change once the new stock rolls down in the market,” said Venugopal Cherumuri, owner of a general store in Somajiguda.
“Clearly the GST rate structure looks positive for some products such as soap, toothpaste and hair oil, which are likely to get cheaper. While tea and coffee may not see any impact, aerated beverages and some consumer durables could be more expensive. Detergents, baby food and sanitary napkins may be available at a higher price,” said Anita Rastogi, partner, indirect tax and GST, at Pricewaterhouse Coopers, a multinational audit, assurance, consulting and tax services firm.
Consumers stood in long lines at Reliance Trends in Forum Mall where consumers had to wait for their turn as manual billing was being done rather using bar-code readers.