GST effect: Skoda India cuts down prices by up to Rs 2.4 lakh
The new GST structure has done away with multiple intermediate slabs. This has made many automobile manufacturers bring down prices of its portfolio. And the latest car manufacturer to join in is Skoda Auto. The Czech car manufacturer today announced reduction of prices in the Octavia and the Superb models. The prices of the Superb model range have been revised by up to 7.4 per cent resulting into a price cut of up to 2.4 lakh, whereas that of the Octavia's reduction ranges from 4.9 per cent to 7.4 per cent resulting in a maximum price drop of Rs 1.75 lakh on the sedan.
The segments that benefit from the newly announced GST structure are the large vehicles with a displacement greater than 1,500cc as well as SUVs with a length of more than 4m. This category of vehicles will attract 15 per cent cess over the peak rate of 28 per cent, making it a total of 43 per cent. Presently, the central excise of 27 per cent is applied along with a value added tax (VAT) of 12.5 to 14.4 per cent. There is also state taxes, octroi and infrastructure cess. The total tally of these taxes goes to up to 45 per cent. Here is a detailed explanation of how it affects the Indian automobile sector.
Current prices of Skoda Octavia and Superb