GST tax rates for luxury cars hiked, 30 daily-use items made cheaper

Mid-sized and luxury cars as also SUVs will cost more after the GST Council today decided to levy an additional 2 to 7 per cent cess on them but exempted small and hybrid cars from any hike.

The council also lowered the Goods and Services Tax (GST) rates for a number of daily-use products ranging from idli/dosa batter to kitchen gas lighter.

A 2 per cent additional cess will be levied on mid-sized cars, 5 per cent on large cars and 7 per cent on SUVs, taking the total incidence of taxation to pre-GST levels, Finance Minister Arun Jaitley said after an 8-hour long meeting of the panel here.

The council, headed by Jaitley, however, decided not to levy any additional tax on small petrol and diesel cars of up to 1200 cc as well as on hybrid ones.

The date of implementation of the additional cess will be notified later.

“Small petrol and diesel cars enjoyed a tax advantage of 3 per cent post GST. But status quo will be maintained on small petrol diesel cars, so even if it has got cheaper let consumers enjoy the benefit,” Jaitley said.

Tax on mid segment cars had gone down from 48 per cent to 43 per …read more