GST rates: How much tax will small cars, SUVs with over '170 mm' ground clearance attract?
&imwidth=600&imheight=450&format=webp&quality=medium "GST rates: How much tax will small cars, SUVs with over '170 mm' ground clearance attract?")
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman chairs the 56th meeting of the GST Council. Photograph: (ANI)
Two GST slabs eliminated: Nirmala Sitharaman said that the reforms focus on the interests of the common man.
Finance Minister Nirmala Sitharaman on Wednesday night announced that the GST Council has approved the Centre's proposal for GST rationalisation, wherein the 12 per cent and 28 per cent slabs are eliminated and subsumed into the 5 per cent and 18 per cent slabs. The panel has also approved a 40 per cent slab for sin goods. The new rates will be implemented from September 22, the first day of Navratri. Most of the goods and services in the eliminated slabs will get cheaper, including cars.
How much cheaper will cars get?
According to the central government, the GST rate on small cars will be reduced from 28 per cent to 18 per cent. For GST, small cars are defined as those LPG, petrol, and CNG cars with an engine capacity up to 1200 cc and a length under 4000 mm.
Diesel cars with engine capacity up to 1500 cc and length not more than 4000 mm are also considered small.
The GST rate on all mid-size and large cars -- vehicles exceeding 1500 cc or length exceeding 4000 mm – will be 40%.
Further, motor vehicles in the category of Utility Vehicles, by whatever name called including Sports Utility Vehicles (SUV), Multi Utility Vehicles (MUV), Multi-purpose Vehicles (MPV) or Cross-Over Utility Vehicles (XUV), with an engine capacity exceeding 1500 cc, length exceeding 4000 mm, and ground clearance of 170 mm and above, will also attract a GST rate of 40% without any cess.
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What did Nirmala Sitharaman say on GST?
Nirmala Sitharaman said that the reforms focus on the interests of the common man. She said the reforms will directly benefit labour-intensive industries.
"We have corrected inverted duty structure problems, we've resolved classification-related issues, and we've ensured that there will be stability and predictability about the GST. We've reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation, ease of living, simplifying registration, return filing, and refunds," she added.
Daily-use items like hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles have been placed under the 5 per cent slab.
Items on which GST has been reduced to zero from 5% include ultra-high temperature milk, chena, and paneer. All Indian breads will be available at a nil rate. So roti or paratha or whatever it is, they all come to nil.
GST has also been reduced from 28 per cent to 18 per cent on air conditioners and dishwashers.
The GST Council has also approved a 40 per cent tax on betting, casinos, and horse racing. Sports events like IPL will also attract 40 per cent GST.