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Half of the price of the car will go to pay tax! Modi Govt slapped 28% GST on utility vehicles

There is no escape, Sugriva friend! The price of cars available in the Indian market is already rising due to the increase in production costs and raw material prices. In a recent meeting, the Goods and Services Tax (GST) Council announced an increase in the tax rate on all utility vehicles in the country to 28%. It is needless to say that due to the increase in taxes, the additional burden is going to be imposed on the buyers while buying SUVs and MUVs in the country.

GST on SUVs and MUVs has been increased to 28%

According to the council’s new rules, all SUV or MUV models with a length of more than four meters, an engine capacity of more than 1,500 cc and a ground clearance of 170 mm are going to see a tax hike. 22% cess will be imposed again along with 28% GST. Which has multiplied the folds of the forehead of the buyers. Earlier the amount of cess was 20%.

But there is a reassuring message for the sedan. The GST Council has decided to exclude such vehicles from the ambit of tax hike. However, the new tax will apply to luxury sedans. According to the new rules, more than 50% of the price of SUVs and MUVs will be spent on taxes alone. Which is a real worry for Indian buyers. However, along with the increase in car prices, the increase in people’s income is also mentioned.

Compensation cess on SUVs and MUVs will be levied depending on the taxability of the vehicles as decided by the GST Council. However, the increase in the overall price of cars is expected to affect the entire eco-system. So even if common people rent such cars, they will have to pay more money from now on.

Team NaxonTech
Team NaxonTech
We believe in the power of storytelling to inform, inspire, and transform perspectives. My journey as a content writer began with a fascination for technology, and I have since diversified my skills to cover a wide array of topics. With a keen eye for detail and a commitment to excellence, I strive to deliver content that not only meets but exceeds expectations.


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