Automobile and insurance companies are in GST-ready mode.

“Preparations have been under way for several months. Most of suppliers have come on the GSTN platform ,” said a spokesperson of Maruti Suzuki India.

“We are ready to handle any customer transaction as per the new tax system right from July 1,” said Hyundai Motor India’s spokesperson.

Hyundai has ensured that its dealers are fully geared to serve customer requirements right from the first day of the new tax regime.

Lower volumes

“We had begun preparations in concert with our supply chain,” said Shekar Viswanathan, Vice Chairman & Whole Time Director, Toyota Kirloskar Motor.

“We took a conscious decision to lower the volumes of vehicles sold to dealers in June. Typically, a dealer will not get input-tax credit for auto cess, infra cess and central sales tax. Therefore, we ensured our dealer partners focus on clearing stocks,” explained Viswanathan.

Mercedes-Benz and Royal Enfield have already started revising the rates and passing on them to the buyers. For Mercedes-Benz’s E-Class models, the price reduction is about ₹2 lakh (ex showroom, New Delhi) in the GST regime.

Insurance companies including LIC and HDFC Life have communicated to their policyholders likely revision in tax rates from July 1. Customers are being informed through SMS and on social media about the higher premiums that they will have to pay from Saturday.

Revised rates

“We have been working for a while to become GST ready. I think every thing will migrate smoothly. Our IT systems are ready to carry out any transaction — be it for renewal or purchase of new policy,” said a top official of United India Insurance Company.

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