Now military officers cannot buy cars over Rs 12 lakh at discounted price from CSD
BusinessToday.In May 30, 2019
Military officers will not be able to buy cars at a discounted price for over Rs 12 lakh now. Orders have reportedly been given to enforce a price cap on four-wheelers bought from the subsidised Canteen Stores Department (CSD). The purchase of these cars has been restricted to only once in 8 years for serving and retired officers.
On May 24, the Army's Quarter Master General (QMG) branch had directed that officers will be able to buy cars "worth upto only Rs 12 lakh, excluding GST" and with an "engine capacity up to 2,500 CC through the CSD route" from June 1 onwards, reported The Times of India.
As per reports, a similar norm will be enforced for 'serving civilian officers' in defence establishments. Meanwhile, other ranks or jawans will be able to buy a car with an engine capacity of up to 1400 CC and not exceeding Rs 5 lakh, excluding GST. However, the cars can be bought only two times- once during service and once after retirement.
A person can save as much as Rs 50,000 to Rs 1.5 lakh, depending on the car purchased through CSD. This is because the government gives 50% refund on the GST imposed on these four-wheelers, after the reduced prices are negotiated with the automobile manufacturers.
The 50 per cent GST rebate, however, is often seen as a loss to the exchequer by finance authorities even though the CSD canteens generate a profit of nearly Rs 500 crore.
(Edited by: Nehal Solanki)