Prices of a few automobile and two-wheeler companies fell on the second day of GST regime. Japanese carmaker, Toyota, slashed prices of its cars by 13 per cent while Hero Motocorp offered discounts ranging from Rs. 400 to Rs. 4,000.
Several other automobile companies such as Tata Motors, Ford India and Hyundai Motors are also expected to announce price cuts in the next few days along with Maruti Suzuki.
India welcomed the new Goods & Service Tax on July 1 as traders, businessmen, small and medium businesses and giant corporates geared up to function within the new tax regime.
GST is an indirect tax based on the destination principle of taxation wherein multiple taxes were subsumed. Presently, goods and services have been placed under four different tax slabs 5%, 12%, 18% and 28%.