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Definition of MUV sought, expect it to be taxed higher,

Rationally MUVs should be taxed lower !!!

The make better use of the road space and fuel they use.

Since all conditions of 4m, 1200cc petrol and GC need to satisfy, wouldn't it make Venue and Brezza in same tax bracket? Or am I missing something?
I am about to purchase Brezza, will I get any benefit if I wait for the new cess rate to take effect? When will it be applied? From the table, looks like Brezza GST + Cess remains 43%?

Referring to the table shared in the image, Brezza falls in third row as CC is > 1.2L. All 3 criteria need to be true for 22% cess. If one of it is not, then it will fall to 15% cess -> 28+15 = 43% GST.

I thought the GST on electric cars was 5%. When did this change to 12%. The tax rate on SUV or Cars over 1.5L is atrocious and doesn't make sense for a robust growth of the automobile industry.

GST Council confirms SUV tax rates to remain unchanged.

As per the GST new clarification, a car would be considered an SUV only if it fully meets four criteria.

According to a SIAM spokesperson, it is business as usual and this clarification is only to clear the air on the SUV body style’s definition. The lack of uniformity among the states in India was causing concern for several manufacturers with regard to GST payments on some of their models.

Link

GST Council may impose 22% cess for all multi-utility vehicles on 11th July 2023 Meeting

https://www.moneycontrol.com/news/bu...-10912521.html

There by impacting newly launched Seltos 1.6L DCT on road :mad:

The tax slab will be 22% instead of 28%. It'll make the cars cheaper though by a tiny bit but still it's good news for customers. Why are you angry?

Taxing a private passenger vehicle like a car or an SUV based on the length just does not make sense. If at all there has to be a cap on the length, let it be 4.5 m or 5 m!

The only criterion that make sense are:

1. Fuel Type
2. Cubic Capacity of the engine
3. Drive train (higher on 4 wheel drive / all wheel drive / rear wheel drive than front wheel drive)
4. Weight of the vehicle
5. Safety rating (Making it mandatory for all cars) (higher the rating - lower the tax)

I may be wrong here. But they are not moving GST slabs here, it is cess - so it is over and above the GST.

When was the last time the govt. reduced taxes? :uncontrol

Thats my understanding too. The cess will be 22% in addition to the 28% GST resulting in a total of 50% tax. If this is true, then the ex-showroom prices will go up by 2%.

Normally Cess is Tax on Tax, but not in the Case of GST Cess. They should've come out with a different name.

It is just additional Tax in our case. Current Tax on Kia Seltos would be 28+22 = 50%. So, a saving of 6% on Ex-factory price will make a difference. But I don't think the govt. is reducing tax, rather thinking of increasing it by changing the classification of MUV.

But Cess is already 22%. Then how will they reduce it from 28 to 22%? I read this news on moneycontrol. There they mentioned that rates will be reduced from 28 to 22% which means GST is getting reduced.
Also dear brothers elections are nearing, governments tend to do these gimmicks to curry favor of the voters.

Cess is always imposed on Tax. It, s basically a Tax on Tax. In this case, It will be on top of 28% GST and will be calculated on this 28%.

FYI - There is no 22% GST Slab. That should clear IMO. Money control article is bit misleading.