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The GST Council has spelled out the clear definitions of SUV that would attract the highest cess of 22 percent compensation, over and above the GST rates on cars and decided to come out with parameters of multi-utility vehicles (MUVs).

This is applicable to motor vehicle fulfilling in all four conditions:

  1. Cars with engine capacity exceeding 1500 cc, length exceeding 4,000 mm and having a ground clearance of 170 mm and above. This attracts a GST of 28%
  2. As per minister, the clairification is not new tax which is more to say what defines that commodity that is under taxation as SUV.
  3. If cars do not meet any of these criteria, lower cess rate will be applicable
  4. If any other motor vehicle categories need to be added to 22% cess, then the panel of central and state tax officers will look into it.

While briefing, it was said that council could decide on only 8 out of the 15 agenda items due to shortage of time, however, no new taxes have been added.

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