Govt notifies GST cess hike on midsize and large cars, SUVs
The Centre has notifiedalevy of increased goods and services tax (GST) cess of up to 7 per cent on midsize, large and sport utility vehicles (SUVs). The GST Council on September 9 had decided to hike cess on midsize cars by 2 per cent, on large cars by 5 per cent, and on SUVs by 7 per cent to bring tax rates on these cars at preGST levels.
The finance ministry on Monday notified the hike in amount of cess to be levied on cars, following which the new rates came into effect.
The effective GST rate on midsize cars will be 45 per cent, and on large cars, it would be 48 per cent. The rate will be 50 per cent on SUVs, which include cars with length exceeding 4,000 mm and having a ground clearance of 170 mm and above.
The Business Standard, New delhi, 13th September 2017