In the coming days, the prices of SUV cars may increase in the country. Actually, in the GST Council meeting held today, the definition of SUV has been clarified. And it has been told that compensation cess will be levied at a higher rate of 22 per cent.
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In the coming days, the prices of SUV cars may increase in the country. Actually, in the GST Council meeting held today, the definition of SUV has been clarified. And it has been told that compensation cess will be levied at a higher rate of 22 per cent. After the 48th GST Council meeting, Finance Minister Nirmala Sitharaman said that compensation cess will be levied at a higher rate of 22 per cent on motor vehicles that meet all the four conditions. He told that the engine capacity of these vehicles should be more than 1,500cc. Apart from this, the length should be more than 4,000 mm and ground clearance should be 170 mm more.
SIAM welcomes the decision
The Society of Indian Automobile Manufacturers, an organization of the auto industry, has welcomed the clarification of the definition of SUV by the GST Council. He has said that this definition is according to his discussion with the Finance Ministry. SIAM issued a statement saying that this decision has made it clear that compensation cess at the rate of 22 per cent on top of 28 per cent GST will also be applicable on such vehicles fulfilling these four conditions.
SIAM further said that it is thankful to the Ministry of Finance, Government of India and the GST Council for issuing clarifications on the definition of SUV.
Other decisions taken in the GST Council meeting
Apart from this, let us tell you that in the 48th meeting of the GST Council, the GST Council has decided to take some cases out of the category of crime. Along with this, the threshold for initiating prosecution has been doubled to Rs 2 crore. Revenue Secretary Sanjay Malhotra gave information about these decisions taken after the 48th GST Council meeting was over. GST on pulse husk has been reduced from 5 percent to zero.
However, Finance Minister Nirmala Sitharaman said that the GST Council could take a decision on only eight of the 15 issues on the agenda of the meeting due to paucity of time. Apart from making an Appellate Tribunal on GST, no decision could be taken on making a system to prevent tax evasion in Pan Masala and Gutkha businesses.
