Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.

Log in to CarWale

Please enter your password
Forgot password?
Please enter your registered email

Or Login with

Sign in with facebook
Sign In with google

Sign up to CarWale

Please enter your name
Please enter your mobile number
Please enter your password
Please enter your password

Cess on SUVs and luxury cars hiked to 25 per cent

August 30, 2017, 04:50 PM IST by Nikhil Puthran
Cess on SUVs and luxury cars hiked to 25 per cent

Goods and Service tax (GST) cess on luxury and sports utility vehicle has been hiked from 15 per cent to 25 per cent by the Union Cabinet. In effect since 1 July, all cars in the country have been attracting a basic GST of 28 per cent. Under fresh revision, vehicles with engine capacity of over 1,500cc , measuring over 4-metres in length will attract an additional cess of 10 per cent, thereby bringing it to 25 per cent. The hike in cess will lead to price hike of large cars as well as SUVs in India.

After the introduction of GST, the total tax incidence on motor vehicles (GST plus compensation cess) has come down when compared to the total tax incidence in the pre-GST regime. To rectify the anomaly, the GST Council, which comprised of representatives from all states, recommended on 5 August that the Central government move legislative amendments required to increase the cess. In order to effectively introduce revision in cess, the council encouraged amendment to the Schedule of section 8 of the GST (Compensation to a State) Act, 2017.  

Roland Folger, MD and CEO of Mercedes-Benz India has stated that the prices will be higher than the pre-GST era and all the announcements claiming that the GST will be a benefit to the people won't be true. He also stated that prices might be hiked by 5 per cent as compared to pre GST prices.  

Show CommentsHide Comments

Toyota Fortuner Price in Popular Cities

CityOn-Road Prices
Hyderabad₹ 32.81 Lakhs onwards
Chennai₹ 33.08 Lakhs onwards
Bangalore₹ 34.53 Lakhs onwards
Mumbai₹ 32.77 Lakhs onwards
New Delhi₹ 31.64 Lakhs onwards
Kolkata₹ 30.33 Lakhs onwards
  • Upcoming Cars

Ford Endeavour FaceliftFord Endeavour Facelift

22nd Feb 2019

29L - ₹ 35L
Honda CivicHonda Civic

7th Mar 2019

13L - ₹ 18L
Tata 45XTata 45X

Mar 2019

8L - ₹ 10L
BMW i8 RoadsterBMW i8 Roadster

Apr 2019

2.80Cr - ₹ 3Cr
Mahindra e20 NXTMahindra e20 NXT

Jul 2019

6L - ₹ 8L
All Upcoming Cars
Ask the experts1800 2090 230Mon-Fri (9 AM - 8 PM)
Sat (9 AM - 5:30 PM)
Sun (9 AM - 7 PM)
Toll free

Select your city to avail offers

Currently available only in