Price Hike in Cars: After the Goods and Services Tax (GST) Council clarified which vehicles will fall within the utility vehicle segment, purchasing an MPV with a strong engine in India is expected to become more expensive. SUVs have always been subject to the highest GST rates of 28%. The council has now declared that all multi-utility vehicles that fall under the same category as those listed by it will be subject to a uniform GST rate and an extra cess.
Specifications of Toyota Innova Crysta
| Fuel Type | Diesel |
| Engine Displacement (cc) | 2393 |
| No. of cylinder | 4 |
| Max Power (bhp@rpm) | 147.51bhp@3400rpm |
| Max Torque (nm@rpm) | 343Nm@1400-2800rpm |
| Seating Capacity | 7, 8 |
| TransmissionType | Manual |
| Boot Space (Litres) | 300 |
| Fuel Tank Capacity | 55.0 |
Price Hike in Cars: Which type of vehicles are getting a price hike?
The GST Council, led by Finance Minister Nirmala Sitharaman, convened on Tuesday, July 11, to examine the issue with finance ministers from other states. The council resolved that cars in this category, regardless of what name a manufacturer chooses to call them, will be included in the utility vehicle segment. These automobiles will now be subject to a 22% cess on top of the GST. In addition to the GST at a rate of 28%, the cess will be applied to such cars. The council states that a comparable fee will be applied to all vehicles with a length greater than 4,000 mm, an engine size greater than 1,500 cc, and a ground clearance greater than 170 mm.
Maruti Suzuki Invicto, Kia Carens, Toyota Innova Crysta
Srivastava added that Maruti Suzuki is unlikely to be impacted by the price increase because the company only offers the recently launched Invicto MPV, which will be included in the category. Since Invicto is a hybrid-only vehicle, it will probably avoid the 22% cess. The development has not received an official response from other manufacturers. It is anticipated that the ruling will have an effect on MPVs such the Kia Carens, Toyota Innova Crysta, and HyCross. In the next days, the ex-showroom price of these automobiles will rise as a result of all automakers’ anticipated transfer of the additional tax burden to consumers.
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