BMW India Races To Pass On GST Benefits

In what it calls "preponed GST benefits", the Bavarian carmaker's dealers in India are offering a handful of benefits across BMW models available in India. Under the purview of the offer, available till 30 June, customers can avail the following benefits:

1. Interest rate of 7.90 per cent

2. Complimentary service and maintenance

3. Complimentary insurance

The aforementioned offers, subject to terms and conditions, are available on specific models only and may vary for each model. It must also be noted that the service and maintenance package is applicable for three years and up to 40,000 kms only.

As the government revealed more details about the framework of the new tax structure, analysts were quick to point out that the gains obtained from it is likely to be passed on to car buyers. Currently, SUVs and cars with 1.5-litres or larger engines are subject to 41.5 to 44.5 per cent taxes: 27 - 30 per cent central excise duty plus state VAT. The new 28 per cent base tax plus 15 per cent cess for luxury cars leads to a total taxation of 43 per cent - which is slightly less than the current numbers. Long story short, it shouldn't be long before the prices of luxury cars in India come down.