GST may make small cars dearer while big cars cheaper: GST should be rational and imposed according to value of cars
Goods and Service Tax-GST after being implemented may make smaller cars with engine-capacity upto 1500 cc a bit dearer because of being coming under slab of 28-percent GST because presently these attract a total of 27.5-percent tax with excise-duty at 12.5-percent added by 15-percent VAT. However big cars with engine-capacity above 1500 cc may be bit cheaper from existing tax of 44.5-percent likely to be reduced to 43-percent inclusive of 15-percent cess over 28-percent GST.
Whole fixation of GST-rates is totally irrational at 5, 12, 18 and 28 percent with a provision of levy of cess on top of the peak tax rate on demerit and luxury goods like pan masala, tobacco and certain class of automobiles is totally irrational. GST rates should have been rational in multiples ...