The GST council met for its 50th meeting on Tuesday and decided to bring all Utility Vehicles (UVs) under the 22 percent cess bracket, an increase of 2 percent, doing away with the differential rate of compensation cess. The decision means that Sport Utility Vehicles (SUVs) and Multi Utility Vehicles (MUVs) will fall under the new tax bracket.
The council has decided to include all Utility Vehicles, no matter what they are called — SUV, MUV, MPV, and so on. The council has said that no matter what the vehicle is called, as long it meets set parameters, it will attract a 22 percent compensation cess, over and above 28 percent GST.
Utility Vehicle parameters that will attract 22 percent cess
As per the update, all vehicles that measure more than 4000mm in length, have an engine displacement of more than 1.5 litres, and with a ground clearance of 170mm or more will attract a 22 percent compensation cess over and above 28 percent GST.
Earlier, only Sport Utility Vehicles that measured over 4000mm with an engine displacement above 1.5-litres attracted the 22 percent compensation cess. Now, any vehicle that meets the criteria mentioned earlier would fall under the price bracket.
So what kind of vehicles can get expensive?
As per the criteria, most popular vehicles such as the Maruti Suzuki Ertiga, Grand Vitara, Toyota Hyryder, Maruti Suzuki Invicto, Toyota Hycross, Kia Carens, Seltos, Creta, and many others will become dearer.
