Car Prices Increase: The country’s car buyers received a major shock following the 50th meeting of the GST Council. The proposal to impose a 22 per cent compensatory cess on Multi Purpose Vehicles (MPV) was agreed in the council meeting by Union Finance Minister Nirmala Sitharam. Following this, the cost of large automobiles may now increase throughout the nation. cess has been imposed in addition to the 28 per cent GST.
Car Prices Increased
Whatever the vehicle type—SUV, MPV, MUV, etc.—the basic requirements are that it be longer than 4,000 millimetres, have a ground clearance of more than 170 millimetres when vacant and have an engine with a displacement of more than 1.5 litres. These vehicles will now be subject to a 22% compensation cess in addition to a 28% GST. Earlier, only a small number of cars designated as sport utility vehicles were subject to the 22 per cent cess. It is evident that sedans will not be subject to the higher cess. Although hybrid vehicles like the Hycross will still only be subject to a 15% cess. However, the MPVs will end up costing more in total when combined with the higher cess bracket.
Finance Minister Nirmala Sitharaman, Minister of State (Finance), Pankaj Chowdhary, Finance Ministers of States and Union Territories, RS Sanjay Malhotra, CBIC Chairman Vivek Johri, Board members and senior officers of DoR and CBIC, as well as many officers from Union Territories attended the GST Council’s 50th meeting.
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