[volkman10]

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

[DicKy]

Originally Posted by volkman10

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.

[bivision]

Originally Posted by Heisenberg_ad

Here are the revised rates.

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%?

[anthusiast]

Originally Posted by bivision

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.

[GS-R]

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.

Originally Posted by Heisenberg_ad

Here are the revised rates.

[volkman10]

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.

Maruti Suzuki Brezza, Hyundai Venue, Tata Nexon, as well as the Kia Sonet – all belonging to the sub-4m segment – do not technically qualify to be termed as SUVs.

Link

[Wizaro]

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

The fitment committee has recommended the inclusion of all utility vehicles, by whatever name called, provided they meet the parameters of length greater than 4,000 mm, engine capacity greater than 1,500 cc and ground clearance of more than 170 mm in the 22 percent cess bracket along with SUVs

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

[kumarprabhatn]

Originally Posted by Wizaro

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

[Clown Prince]

Originally Posted by kumarprabhatn

There by impacting newly launched Seltos 1.6L DCT on road

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?

[Proud BRV Owner]

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)

[kumarprabhatn]

Originally Posted by Clown Prince

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?

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

[m8002?]

Originally Posted by Clown Prince

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?

When was the last time the govt. reduced taxes?

Originally Posted by kumarprabhatn

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

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%.

[jaaz]

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.

[Clown Prince]

Originally Posted by m8002?

When was the last time the govt. reduced taxes?


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%.

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.

[.sushilkumar]

Originally Posted by Clown Prince

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..

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.