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

 

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