GST

GST Council increases cess on mid-size-large cars and SUVs

GST Council increases cess on mid-size-large cars and SUVs. The increase is 2 % on mid size cars, 5% on Large cars and 7% on SUVs

In its 20th meeting held on the 5th of August 2017, the GST Council had considered the issue of cess leviable on motor vehicles and recommended increasing the maximum ceiling of cess leviable on motor vehicles falling under headings 8702 and 8703 including SUVs, to 25% instead of present 15% . However, the decision to raise the actual cess leviable was deferred,

Now, the GST Council in its 21st meeting held on 9th September, 2017 has recommended increase in Cess on Motor Vehicles 

Increase in rate of the Compensation Cess on certain specified motor vehicles

As per discussions in the GST Council Meeting held on 9th September, 2017:

Segment

 

Heading

Present Compensation Cess rate

Proposed Compensation Cess rate

Passenger Vehicles of heading 8703
Small Cars (length < 4 m ; Petrol<1200 cc) 8703 1% No change
Small Cars (length < 4 m ; Diesel < 1500 cc) 8703 3% No change
Mid Segment Cars (engine < 1500 cc) 8703 15% 17%
Large Cars (engine > 1500 cc) 8703  

15%

 

20%

Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) 8703 15% 22%
Motor vehicles for transport of not more than thirteen persons, including the driver [falling under   sub-headings   8702   10, 8702 20, 8702 30 or 8702 90] 8702 15% No change
Hybrid Mid Segment Cars (engine < 1500 cc) 8703 15% No change
Hybrid Large Cars (engine > 1500 cc) 8703 15% No change
Hybrid Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) 8703 15% No change

 

Share

Recent Posts

  • Income Tax

Object of assessment proceedings is not to find empirically correct solution on every fact issue – HC

It can never be the object of assessment proceedings to find an empirically, absolutely correct solution on every fact issue…

5 days ago
  • Income Tax

Penalty u/s 270A deleted as assessee filed revised computation during scrutiny

Penalty u/s 270A deleted as assesse filed revised computation during scrutiny correcting the mistake which was noticed only after the…

5 days ago
  • Income Tax

Penalty u/s 271B for unfilled column 40 in Tax Audit Report Form 3CD deleted by ITAT

Penalty u/s 271B for unfilled column 40 in Form 3CD related to details regarding turnover, gross profit etc. for previous…

1 week ago
  • Income Tax

Merely ex-parte rectifying computation without amending assessment order not make it nullity- ITAT

Merely rectifying computation without amending assessment order without notice to assessee does not nullify the entire assessment  - ITAT In…

2 weeks ago
  • Income Tax

Once assessee discharges primary onus, it shifts to AO to bring evidence to contrary – ITAT

Once assessee discharges primary onus of providing basic documents in support of the identity, genuineness and the creditworthiness it shifts…

2 weeks ago
  • Income Tax

Cost Inflation Index for FY/Tax Year 2026-27 notified by CBDT. See Up-to-date Table of CII

CBDT has notified Cost Inflation Index for Financial Year / Tax Year 2026-27 CBDT has notified "384" as Cost Inflation…

2 weeks ago