SUV GST: The Goods and Services Tax (GST) Council resolved on Saturday to establish a unified definition for sports utility vehicles throughout all states in the nation, attracting a higher tax rate.
Currently, vehicles with an engine capacity greater than 1500 cc, a length greater than 4000 mm, and a ground clearance greater than 170 mm are subject to a GST of 28% and a cess of 22%, bringing the overall tax rate to 50%. However, states do not consistently define what constitutes an SUV, which causes confusion among automakers.
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What did the council decide on SUV GST?
The council, which was made up of state finance ministers and headed over by the union finance minister, concluded that in order for a vehicle to be classed as an SUV, it must fulfil all requirements, including those for engine size, length, and ground clearance.
the Chairman of the Central Board of Indirect Taxes and Customs’ Vivek Johri stated, “If cars do not meet any of these criteria, a lower cess rate will be applicable.”
According to Johri, an internal committee will also decide if mobility utility vehicles should also adhere to these standards in order to fall under the higher cess level.
In Relation
The ministerial panel’s report on the taxation of online gambling enterprises and casinos, which has implications for billion-dollar businesses like Tiger Global-backed Dream11 and Sequoia Capital-backed Mobile Premier League, was not discussed by the body.
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