The increased Goods and Services (GST) cess on mid-sized and luxury cars as well as SUVs will come into effect on Monday, September 11.
The GST Council on September 9 decided to hike cess on mid-sized cars by 2 percent, large cars by 5 percent and the SUVs by 7 percent.
Here is a look at how your car buying will be affected with hike in cess.
Cars with smaller petrol engines
Cars under 4-metre length and powered by petrol engines less than 1.2-litre capacity will continue to attract 29 percent tax under GST, including 1 percent cess.
Cars with smaller diesel engines
Cars under 4-metre length and powered by diesel engines less than 1.5-litre capacity are taxed at 31 percent (28 percent + 3 percent cess).
Mid-sized cars with less than 1.5 litre engine
This new mid-sized car segment will see a 2 percent hike on the current GST cess, taking the total tax incidence to 45 percent.
Larger cars or luxury cars
All cars in this category will bear a 5 percent hike in cess, taking the total cess to 20 percent from the current 15 percent. The cars in this segment will now be taxed at 48 percent.
SUVs longer than 4 metre and with larger engines
This is where the hike in cess is going to leave a bigger dent as a result of the cess being raised 7 percent. It and takes the total GST incidence to 50 percent from the current 43 percent.
GST effect on electric cars
Electric cars will continue to attract a lower tax rate of 12 percent.
GST effect on hybrid cars
The cess on hybrid cars has not been changed and will continue at 15 percent.
|Segment||Current Cess rate||Proposed Cess rate||Models|
|Cars with smaller petrol engine||1%||No change||Tata Nano, Maruti Suzuki Alto, Renault Kwid|
|Cars with smaller diesel engine||3%||No change||Maruti Suzuki Baleno, Swift, Hyundai i20, Honda Jazz|
|Cars with more than 1.2L petrol and 1.5L diesel engine capacity||15%||No change||Fiat Abarth Punto, Volkswagen Polo GTI|
|Cars with more than 4-metre length and bigger engines||15%||(28% +17% Cess) OR (28% GST +20% Cess)||Honda City, BMW 5 Series, Mercedes-Benz S-Class,|
|SUVs longer than 4-metre||15%||22%||Maruti Suzuki Vitara Brezza, Jeep Compass, Mercedes-AMG G 63|
|Hybrid vehicles||15%||No change||Toyota Camry hybrid, Honda Accord hybrid, Lexus' hybrid range|
|Electric cars||12%||No change||Mahindra E2o, eVerito|