GST Effect: RTO Charges | Car & Bike Insurance
Implementation of GST has brought a considerable change in on-road pricing of various vehicles. The huge drop was limited to certain states only as cars in Delhi saw a little change (except for SUVs, luxury cars) in their ex-showroom price.
The change in price of the same car in Mumbai was worth consideration as Octroi was removed from the complete process. GST is now applicable on everything, including the calculation of on-road price of a vehicle. Here are the applicable changes on you new price quote.
Tax on insurance will go up by 3 percent, keeping the services same as before but charging 18 percent GST instead of the old 15 percent of service tax. That simply means that an insurance scheme that costs INR 100 will now cost INR 118 but could have been bought for INR 115 before July 1, 2017. This would mean an addition of INR 300 while you buy an insurance for your car worth INR 10,000.
The change in insurance cost for everyday commuter bikes will not be as loud as the drop in price of the same bike. RTO charges or registration cost will definitely drop as the price of vehicle while registration saw a fall through GST. No increase in charge was witnessed in Delhi while automobile fans from Mumbai will face the heat with 2 percent increase in RTO charges.
A petrol car in Mumbai needs to pay 11-13 percent of tax while diesel need 13-15 percent of payment as registration cost. Motorcycles will even pay more as they are now taxed between 10-12 percent. The amount of RTO tax depends upon engine size.