First GST anti profiteering decision for Honda Cars
First GST anti-profiteering decision for Honda Cars:
First anti-profiteering application raised for Rs. 10,550 by a car buyer is quashed by authority. The buyer alleged that the tax on the car was 51% earlier and now it is 29%. A demand of Rs. 10,550 was raised by the buyer quoting the reduction in tax. But after going through the calculation given by the car seller the authority decided that the buyer didn’t understand the GST provisions properly. His conclusion was not correct. Hence the seller is not liable for any demand or penalty. A comparative sheet for taxes before and after GST was also provided by the seller to make the picture clear.
Table ‘A’
| Duty/Tax/Cess | Pre-GST Rate (%) |
Post-GST Rate (%) |
| Excise Duty (S. No. 285 of Notification No.12/2012-CE dt. 17.03.2012, as amended) |
12.5 | – |
| National Calamity Contingent Duty (NCCD) | 1 | – |
| Auto Cess | 0.125 | – |
| Infra Cess | 1 | – |
| Total (A) | 14.625 | – |
| CST (B=0.05% on A) | 0.007 | – |
| Total (C=A+B) | 14.632 | – |
| VAT (D)=(14.5% on C) | 16.622 | – |
| GST+Cess | – | 29 |
| Total tax rate (C +D) | 31.254 | 29 |
The pre-GST and post-GST ex-showroom prices of the car purchased by the applicant were
also worked out by the DGSG as per Table ‘B’ below:-
Table ‘B’
| Particulars | Factor | Pre-GST (in Rs) |
Post-GST (in Rs) |
| Basic price of Honda Car Model: WRV. 1.2VX MT (i-VTEC) | A | 6,59,175 | 6,58,718 |
| Excise Duty @12.5% | B=A*12.5% | 82,397 | – |
| NCCD @ 1% | C= A*1% | 6,592 | – |
| Auto Cess @ 0.125% | D=A*0.125% | 824 | – |
| Infra Cess @1% | E= A*1% | 6,592 | – |
| Ex-factory Price | F= Add A to E | 7,55,579 | 6,58,718 |
| CST @ 0.05% | G= F*.05% | 378 | – |
| Freight | H | 4,452 | 4,260 |
| Transit Insurance | I | 121 | 108 |
| Dealer Landed Price | J= Add F to I | 7,60,530 | 6,63,086 |
| Dealer Margin | K | 33,619 | 33,619 |
| Dealer Price | L= J+K | 7,94,149 | 6,96,705 |
| VAT @ 14.5% | M= L*14.5% | 1,15,152 | |
| GST + Cess @ 29% | N= L*29% | – | 2,02,044 |
| Ex-showroom price of Alabaster Silver colour car | O= L+M/N | 9,09,300 | 8,98,750 |
| Additional cost of Orchid white colour car |
P | 4,000 | |
| Ex-showroom price of Orchid white colour car |
Q= O+P | 9,13,300 | |
| Price charged from the applicant | 8,98,750 | ||
| Benefit passed on to the applicant (excluding Rs.4,000/- reduced for change in colour) |
10,550 |
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