Confused over UV definition, car companies await govt notification on cess

Some UVs which to date are paying 20% compensation cess under the old definition, will pay 22% once notification comes. But it isn't clear which UVs will be impacted

Automobile companies are confused as the central government is yet to issue a notification on the Goods and Services Tax (GST) Council's decision to change the definition of utility vehicles (UVs).

In a press release on Tuesday, the GST Council said any vehicle that has the length of four metres and above, engine capacity of 1,500 cc and more, and unladen ground clearance of 170 mm and more will be deemed a "UV". The UVs will attract the GST rate of 28 per cent along with a compensation cess at 22 per cent.

Certain UVs -- which till date are