Changes in GST cess has shaken the confidence of auto manufacturers: Hyundai

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Changes in GST cess has shaken the confidence of auto manufacturers: Hyundai
The company, which is the second largest car manufacturer in the country after Maruti Suzuki India, expects the decision to hike cess will impact sales during the festive season.
Press Trust of India, New Delhi
In the absence of consistent and long term policy the investment for new products and new technology will be adversely impacted, the Hyundai Motor India Ltd statement said.
In the absence of consistent and long term policy the investment for new products and new technology will be adversely impacted, the Hyundai Motor India Ltd statement said.
With the government notifying levy of increased cess, the effective GST rate on mid-size cars will be 45%, and on large cars it will be 48%.

The rate will be 50% on sports utility vehicles (SUVs), which include cars with length exceeding 4,000mm and having a ground clearance of 170mm and above.

However, the cess on small petrol and diesel cars, hybrid cars and those carrying up to 13 passengers has not been raised.

Under the GST regime, cars attract the highest tax slab of 28% and on top of that a cess is levied.

Automakers such as Mahindra & Mahindra, Toyota Kirloskar Motor, Audi, Mercedes-Benz and JLR India have already announced plans to raise prices due to hike in cess.
source:http://www.hindustantimes.com/business-news/changes-in-gst-cess-has-shaken-the-confidence-of-auto-manufacturers-hyundai/story-2DFOpbxflQPMX6OSanK8oO.html