Bifalgorithm post

You may soon be able to buy a brand new car at a 28% discount. So that means Toyota Innova High Cross that cost 31.8 lakhs for certain models could actually cost you only 22.9 lakhs effectively. And I'll tell you exactly how that is possible. So there's a proposal right now that lets companies claim back the GST they have paid on their cars, bought in the company's name for employees or for official use. Right now, that credit is blocked for companies. This proposal changes that. Now, today, most cars over 4 meters in length are charged a GST of 40%. That 40% is already baked into the on-road price that you see. For example, the Hyundai Creta SX is about 15 lakhs in cost of which 4.3 lakhs is GST. If you are able to offset that, the real cost drops to just 10.7 lakhs. Similarly, an XUV720 of 24.8 lakhs drops effectively to 17.7 lakhs. Now remember, you don't get a discount at the showroom. You still pay the full sticker price. What changes is that the GST becomes a credit against your future GST liability and your real cost drops by specifically 28.57% because that's what 40% GST works out to you once you start offsetting it entirely. This is now proposed from the GST Council's Law Committee and reported by the Economic Times. Remember, it is not notified law and there's no confirmed date and even if it clears, my read is it gets restricted to exclusive business use, not personal use, routed through a company.

You may soon be able to buy a brand new car at a 28% discount. So that means Toyota Innova High Cross that cost 31.8 lakhs for certain models could actually co…