The GST council met for its 50th meeting and has decided to levy 22% compensation cess on Utility Vehicles (UVs).
As per the new parameters, MUVs and SUVs will fall under this bracket.
Earlier, the compensation cess on these vehicles was 20%. Now they will witness a 2% hike.
Prior to this, it was only Sport Utility Vehicles (SUVs) that measured more than 4000mm and had an engine larger than 1.5-litres that attracted this cess.
However, now, all vehicles, no matter what category they fall under, will fall under this tax bracket.
The parameters say that any vehicle that measures over 4000mm, has a ground clearance of 170mm and above and powered by an engine larger than 1500cc will attract 22% cess over and above 28% GST.
This will include popular vehicles such as the Scorpio, Innova Hycross, Maruti Invicto, Safari, Harrier, and others.