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GST cess hike impact: Luxury cars, SUVs become more expensive

Prices for Innova MPV increased by Rs 78,000 while Fortuner SUV witnessed a price surge of Rs 1,60,000

Toyota Innova Touring Sport. Photo: Official website
Toyota Innova Touring Sport. Photo: Official website

Post GST roll-out, the GST council had charged auto industry a tax of 43% (28% GST + 15% cess). On September 9, the Council had raised the cess by 2%, 5% and 7% across three different segments taking the taxes to as high as 50%.  Cess on mid-segment cars that exceed four meters in length with an engine capacity of above 1200 cc in petrol or above 1500 cc in diesel has been increased by 2 per cent. These cars will attract 45 per cent GST (28 per cent GST + 17 per cent cess) as compared to 43 per cent before GST (28 per cent GST + 15 per cent cess). Taxes on luxury cars have ...