Indian Tax Solution

Rates of motor vehicles.
Increase in rate of the Compensation Cess on certain specified motor vehicles

As per discussions in the GST Council Meeting held on 9th September, 2017:

Segment Heading Present Compensation Cess rate Proposed Compensation Passenger Vehicles of heading Cess rate 8703 Small Cars (length < 4 m ; Petrol< 1200 cc) 8703 1% No change Small Cars (length < 4 m ; Diesel < 1500 cc) 8703 3% No change Mid Segment Cars (engine < 1500 cc) 8703 15% 17% Large Cars (engine > 1500 cc) 8703 15% 20% Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) 8703 15% 22% Motor vehicles for transport of not more than thirteen persons, including the driver [falling under sub-headings 8702 10, 8702 20, 8702 30 or 8702 90] 8702 15% No change Hybrid Mid Segment Cars (engine < 1500 cc) 8703 15% No change Hybrid Large Cars (engine > 1500 cc) 8703 15% No change Hybrid Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) 8703 15% No change

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