GST Council Clears Air on MUVs & XUVs, says 22% compensation cess applies to all multi-utility vehicles

GST Council - GST Council Clears Air on MUVs & XUVs - 22% compensation cess - multy utility vehicles - taxscan

The Union Finance Minister Nirmala Sitaraman presided over the 50th meeting of the GST Council today (11th July 2023) at Vigyan Bhawan in New Delhi including Revenue Secretary, CBIC chairman.

Readmore: 50thGST Council Meeting: Key Highlights

The GST Council inter-alia made the recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST. The GST Council decided to clear air on MUVs and XUVs and declared that 22% compensation cess will be applicable to all the multi-utility vehicles.

The Council was also decided to amend the entry 52B in compensation cess notification to include all utility vehicles by whatever name called provided they meet the parameters of length exceeding 4000 mm, Engine capacity exceeding 1500 cc and having Ground Clearance of 170 mm & above.

Also, the Council made a clarification to the word of ‘Ground clearance’ which means the Ground Clearance in un-laden condition.

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