Council fixes 4-level GST rate: Luxury cars, SUVs won't turn cheaper

Under GST peak rate of 28% is lower than the 54% taxes that larger cars currently pay

Luxury cars and big sports utility vehicles (SUVs) are not going to turn cheaper with the implementation of the goods and services tax (GST). Even though the peak rate of 28 per cent under GST is lower than the 54 per cent taxes (central and state) that larger cars currently pay, an additional cess will be imposed to compensate the difference.

It is immediately not clear how GST will impact the mass car market. Experts, however, say the level of tax on smaller cars will have to be at a differential to the sedans. The same arguments have been