[ToThePoint]

Originally Posted by steadfast

So the tax rule is ‘and’ or ‘or’ . Do all criterion need to fulfill or only one of them to fulfill the higher tax

All criteria to be met. It has always been like that since this classification was introduced few years ago!

They have just removed the 'SUV' parameter now so that even UV's fall under the category.

[Gamemaztr]

Originally Posted by atluri_rkc

Don't discount the smartness of auto OEMs. In the not so distant past, when such a tax was imposed based on GC, a major Indian OEM just included a small metal plate below the vehicle.

I doubt OEM's would do this now. The GST authorities now have become very vigilant and possibly, this post itself may make them more aware regarding possible tax evasion.

[wolf_lone]

Originally Posted by steadfast

So the tax rule is ‘and’ or ‘or’ . Do all criterion need to fulfill or only one of them to fulfill the higher tax

We will have to wait for the final Notification which will be published later.

[AutoDowntowner]

Present members of GST council: https://gstcouncil.gov.in/gst-council-member

[Black_Star]

Toyota - Hold my Sake

Introducing Toyota Land Speed Cruiser and Toyota Hilux Revo GR Sport Low-rider, in India soon

[cosmodan]

Originally Posted by steadfast

So the tax rule is ‘and’ or ‘or’ . Do all criterion need to fulfill or only one of them to fulfill the higher tax

The existing 4M rule has ‘or’ condition, also has wider cover for tax revenue. Govt will go for ‘or’, happy to be proven wrong though.

Scare mongering about impact of automobile sales is not going to work. Cars with net taxes closer to 60% has current waiting period in years, so why should govt worry about backlash?

[diwakarmuthu]

I feel this is very similar to taxing the salaried class. If you have the capacity to buy, the government is essentially saying, pay the taxes too and don't ask any questions.

I came across this article in Autocar Professional

What the notification says?

As per the GST Council’s 48th meeting in December 2022, a higher compensation cess of 22 percent (on top of the 28 percent GST on all petrol and diesel vehicles) would be applicable to vehicles that met four criteria: having an engine capacity exceeding 1,500cc; a length exceeding 4,000mm; ground clearance exceeding 170mm; and being ‘popularly known as an SU

According to this article

This means all sedans, irrespective of length (e.g. Skoda Slavia, Mercedes C-Class), attract a lower compensation cess. As before, all sub-four-metre vehicles (e.g. Tata Nexon, Nissan Magnite) also attract a lower compensation cess, as do midsize SUVs and MPVs with engine capacities less than 1,500cc (e.g. Kia Carens, Hyundai Creta), while large UVs with hybrid powertrains (e.g. Toyota Innova Hycross, Maruti Invicto) attract 15 percent, rather than 22 percent cess.

The contentious unladen ground clearance of 170mm

Other industry insiders, who did not wish to be named, have told Autocar India that the announcement creates a huge challenge for the industry, which has not been given any protocols for the measurement of unladen ground clearance. The exact parameters of this measurement protocol will have to first be defined properly, after which all existing vehicles will have to be re-measured. The industry is awaiting the draft notification that details out the new UV definition and hopes that this anomaly of ground clearance is rectified to align with the current industry practice.

[Naetik30]

I am confused. My Hyundai Alcazar has 1493 cc diesel engine + 200 mm GC + 4500 mm length. So, only 2 of the 3 conditions satisfied. Will this fall under additional cess?

[ergon_9700]

Originally Posted by Naetik30

I am confused. My Hyundai Alcazar has 1493 cc diesel engine + 200 mm GC + 4500 mm length. So, only 2 of the 3 conditions satisfied. Will this fall under additional cess?

No. I think all 3 criteria has to be met for the extra cess.

[abaliga]

With passenger vehicle sales booming in the last 2 years, administration wants to encash on the spending spree to fund schemes and cover deficits, I am sure the policy makers cannot afford to a reduced manufacturing output and may take corrective measures if de-growth is observed in the sector, until then it's all about 'making hay while the sun shines' approach by everyone involved in the chain

[xway]

I am not clear here if the criteria is "AND" or "OR"

- length of 4m or more
- groud clearance of 170 mm or more
- engine 1500 cc or more

Already the car breakup looks something like this -

+ 28% GST
+ 22% Cess
+ 17% Road Tax (bangalore for vehicles between 10 - 20 lacs)
+ 8% Insurance Approx per year (18% GST included)

= 75% WOW

No wonder Manufacturers skim on features to the extent of removing
nuts and bolts to cut costs.

That too after paying 34% in Income Tax to earn to pay for the car.

Am i the only one who thinks this as absurd, robbery, loot ?

[Himalayan_Ice]

Originally Posted by xway

I am not clear here if the criteria is "AND" or "OR"

- length of 4m or more
- groud clearance of 170 mm or more
- engine 1500 cc or more

Already the car breakup looks something like this -

+ 28% GST
+ 22% Cess
+ 17% Road Tax (bangalore for vehicles between 10 - 20 lacs)
+ 8% Insurance Approx per year (18% GST included)

= 75% WOW

No wonder Manufacturers skim on features to the extent of removing
nuts and bolts to cut costs.

That too after paying 34% in Income Tax to earn to pay for the car.

Am i the only one who thinks this as absurd, robbery, loot ?

Please add to it:
• Taxes on fuel
• Toll taxes

Considering the absolute garbage our roads are (from a quality and safety standpoint) we are being punished for the audacity of having aspirations.

Am taking a break while driving on the Shimla - Kalka road right now and there is not one section which has a functional mountain-side lane. The mountains have all collapsed on to the roads because of unscientific and shoddy construction.
And have they stopped charging toll even though the roads are about washed out?
Does a butcher spare an animal because it seems unwell?

No wonder everyone wants out.

[Mustang Sammy]

Originally Posted by xway

That too after paying 34% in Income Tax to earn to pay for the car.

Am i the only one who thinks this as absurd, robbery, loot ?

Why are you complaining?
In other countries people have to drive long distances to get off road practice and a chance to use their AWD/4WD hardware. Here you can do it as part of your daily commute.
Your taxes hard at work.

[k0p]

Originally Posted by xway

+ 28% GST
+ 22% Cess
+ 17% Road Tax (bangalore for vehicles between 10 - 20 lacs)
+ 8% Insurance Approx per year (18% GST included)

= 75% WOW

At this rate, I think we can just Import cars that fall under the 60% duty bracket. End pricing between EU Built Import might be similar to Indian manufactured or CKD.

[Ltinsane]

I sadly remember when Honda decided not to launch the new 2020 Jazz model in India since it was a just a tad bit longer than 4 meters hence will attract higher tax bracket. I wonder if such incidents will happen again.