The GST Council on 9 September decided to hike cess on mid-sized cars by 2%, taking the effective GST rate to 45%.
Cess on large cars has been hiked by 5%, taking the total GST incidence to 48% while that of SUVs by 7% to 50%.
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Key Facts
- The increased goods and services tax (GST) cess on mid- sized, luxury and SUV cars has come into effect from today.
- Mid segment cars which earlier incurred a GST tax of 28% in addition to a cess of 15% to bring the total tax to 43%, will now incur a cess of 17% to bring the tax to 45%.
- This is still 3% cheaper to the pre-GST taxation level which was at 48%.
- The small and hybrid cars are exempted from any hike.