What is an SUV? Know the official definition set by GST council

Car manufacturers are offering steep deep discounts on their products as the year winds down, especially in the run-up to Christmas. Current market trends indicate that Indian consumers are more keen to invest in sport utility vehicles, also known as SUV. A set of rules to define MUVs and SUVs will be classified for the 22% compensation cess was published by the GST Council on Saturday. If you're in the market for a new sport utility vehicle (SUV), it's a good idea to do some research on whether or not your prospective purchase will be classified as a full-fledged SUV or an Sub-four metre SUV for tax purposes.

At present, cars with engine displacements exceeding 1500 cc, overall lengths over 4000 mm, and ground clearances over 170 mm face an effective tax rate of 50%, made up of a GST of 28% and a cess of 22. Since there is no agreed-upon definition of an SUV, producers are generally at a loss.

The higher rate of compensation cess of 22 percent is applicable to a motor vehicle satisfying all four conditions, as stated by Finance Minister Nirmala Sitharaman in the case of SUVs. Nirmala Sitharaman, India's minister of finance, has remarked that the debate over MUVs started when certain states questioned whether sedans could be considered SUVs. The states also proposed adopting an MUV definition.

According to Johri, a committee will decide whether or not mobility utility vehicles must also adhere to these standards in order to fall under the higher cess level.

According to the minister, the Council has resolved to have the panel of central and state tax officials (or the Fitment Committee) investigate whether or not any more kinds of motor vehicles ought to be included to the 22 percent cess.

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In a separate development, Finance Minister Nirmala Sitharaman briefed media after the 48th GST Council meeting, saying that due to time constraints, the Council could only deliberate on 8 of the 15 agenda items, but that no additional taxes had been implemented.

Revenue Secretary Sanjay Malhotra said on Saturday that crimes including willful alteration of significant evidence, refusal to furnish information, and obstruction of any official in the performance of his or her responsibilities no longer carry criminal penalties.