Dec 17, New Delhi (Reuters) – India’s Items and Providers Tax (GST) Council on Saturday decided to have a single definition throughout all states Inside the nation for sports activities utility automobiles, appeal toing A greater tax price.
Presently automobiles with engine performance exceeding 1500 cc, size exceeding 4000 mm and having floor clearance of 170 mm appeal to a GST of 28% and a 22% cess, taking the efficient tax price to 50%. However, states Do not have a fixed definition outline a car as a SUV, Ensuing in confusion amongst automakers.
The council, composed of state finance ministers and chaired by the federal finance minister, decided That Every one The requirements collectively with engine performance, size and floor clearance has to met for a car to be categorized as a SUV.
“If automobiles Do not meet any Of these standards, decrease cess price Shall be relevant,” said Vivek Johri, Chairman of Central Board of Oblique Taxes and Customs.
An inner committee Can additionally think about whether or not mobility utility automobiles Can additionally Want to fulfill these standards To return beneath The greater cess threshold, Johri said.
The physique Did not converse about a report ready by a ministers’ panel on how on-line gaming corporations and casinos Ought to be taxed, A drawback that impacts billion greenback corporations Similar to Tiger Worldwide-backed Dream11 and Sequoia Capital-backed Mobile Premier League.
Reporting by Nikunj Ohri in New Delhi, writing by Aftab Ahmed in New Delhi and M. Sriram in Mumbai
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