GST Revision: Three Cess Slabs For Mid-Sized, Luxury Cars, And SUVs

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After several discussions, the GST Council has finally set the GST cess on mid-sized, luxury cars and SUVs. The GST cess on smaller cars with petrol engines up to 1200cc and diesel engines up to 1500cc remain unchanged with 43 per cent (28 percent GST+15 per cent Cess).

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GST: Cess On Mid-Size, Luxury Cars And SUVs Increased

The new GST cess on mid-sized cars has been fixed at 45 percent (28 percent GST + 17 percent Cess). Luxury cars that are not categorized as SUVs attract 48 percent (28 percent GST + 20 percent Cess). As for SUVs, the GST Council as set the rate at 50 percent (28 percent GST + 22 percent Cess).

GST: Cess On Mid-Size, Luxury Cars And SUVs Increased

GST Rates In Detail

Body Style GST Rate (Old) GST Rate (New)
Sub 4-metre vehicles (Petrol less than 1200cc) 28 percent GST + 1 percent Cess = 29 percent
28 percent GST + 1 percent Cess = 29 percent
Sub 4-metre vehicles (Diesel less than 1500cc) 28 percent GST + 3 percent Cess = 31 percent 28 percent GST + 3 percent Cess = 31 percent
Sub 4-metre vehicles (Petrol > 1200cc/ Diesel > 1500cc) 28 percent GST + 15 percent cess = 43 percent 28 percent GST + 15 percent cess = 43 percent
Mid-Sized Cars (More than 4-metres) 28 percent GST + 15 percent Cess = 43 percent
28 percent GST + 17 percent Cess = 45 percent
Luxury Cars (More than 4-metres) 28 percent GST + 15 percent Cess = 43 percent 28 percent GST + 20 percent Cess = 48 percent
SUVs (More than 4-metres) 28 percent GST + 15 percent Cess = 43 percent 28 percent GST + 22 percent Cess = 50 percent
Hybrid Vehicles 28 percent GST + 15 percent Cess = 43 percent 28 percent GST + 15 percent Cess = 43 percent
Electric Vehicles (EVs) 12 percent GST (No Cess) 12 percent GST (No Cess)
GST: Cess On Mid-Size, Luxury Cars And SUVs Increased

The GST Cess for mid-sized cars has been increased by 2 percent, luxury cars up by 5 percent, while on SUVs, it has been increased by 7 percent. The new GST Cess slabs are effective from September 11, 2017.

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GST: Cess On Mid-Size, Luxury Cars And SUVs Increased

DriveSpark Thinks!

The mid-sized cars attracted 46.60 percent tax pre-GST and now attracts 45 percent. Hence, there is a marginal reduction in price compared to the pre-GST period for mid-size cars. Larger cars and SUVs attracted 55.30 percent tax will now attract 50 percent, which is marginal again, but there is a reduction compared to the pre-GST era.

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