After all, how much GST to pay when buying an SUV? The government has made it clear
SUVs are becoming increasingly popular in the country, but there is considerable doubt about how much GST to pay on them. Now the government has given clear information about this.
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GST on SUV: Nowadays SUV cars are becoming the first choice of people in India. The purchase of these vehicles is also subject to heavy GST, as well as cess. GST Council meeting in December (GST Council meeting) has raised some doubts about its rate on SUVs, on which the Central Board of Indirect Taxes has now (CBIC) Gave clear information.
CBIC on Friday sent clarifications to its senior field officers about the GST and cess rates applicable on SUVs. Through this they have been informed about the GST rate fixed in December.
This is how much GST will be levied on SUVs
Officials sought clarification from the CBIC on tax rates on certain types of vehicles that attract GST cess at 22 percent. In this regard, CBIC has clarified that the GST cess at 22 percent will be applicable only on those motor vehicles that fulfill 4 specific conditions.
According to CBIC, these vehicles are commonly known as SUVs. Their engines are 1500cc or more. Their length is more than 4000 mm. At the same time, their ground clearance is 170 mm or more.
GST on fruit drinks or fruit juice
Along with this, CBIC has also cleared the confusion regarding GST levied on carbonated drinks containing fruit drinks or carbonated drinks containing fruit juice. Both these beverages will attract GST at the rate of 28 percent and cess at the rate of 12 percent, CBIC said. However, the GST rate on snack packets like fries will be 18 percent.
Experts believe that this order by the CBIC is going to clear confusion on GST on SUVs as well as tax rates on many other items.
