GST Council Decides On Single Definition Of SUV

| Updated: December 18, 2022 12:39 pm

One of the major initiatives taken at the 48th Goods and Service Tax (GST) Council meeting headed by Finance Minister Nirmala Sitharaman that took place on Saturday was to implement a single definition of Sports Utility Vehicles (SUV) in the country for clarity for automakers and for tax implications. The GST Council on Saturday clarified on the definition of SUVs (sports utility vehicles) for levy of 22 percent compensation cess and decided to come out with parameters to define MUVs (multi utility vehicles).

Currently, cars with engine capacity exceeding 1500 cc, length exceeding 4000 mm and having ground clearance of 170 mm attract a GST of 28 percent and a 22 percent cess, taking the effective tax rate to 50 percent.  

Key Decisions Taken In GST Council Meet

There has been no tax increase on any item. Meanwhile, the Council recommended reducing GST on biofuel. The GST Council recommended decriminalising three kinds of offences –“obstruction or preventing any officer in the discharge of his duties; deliberate tempering of material evidence; and failure to supply the information.”

“Obstructing any officer from discharging his duties, threshold limit of tax amount for launching prosecution in any criminal offence under GST laws raised from Rs 1 crore to Rs 2 crore for all offences except fake invoices,” the revenue secretary stated.

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