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The recommendation of the GST Council for increase in the Compensation Cess rates for certain motor vehicles: EximGuru.com


Increase in rate of the Compensation Cess on certain specified motor vehicles

As per discussions in the GST Council Meeting held on 9th September, 2017:

Segment Heading Present Compensation Cess rate Proposed Compensation Cess rate
Passenger Vehicles of heading 8703
Small Cars (length < 4 m ; Petrol<1200 cc) 8703 1% No change
Small Cars (length < 4 m ; Diesel < 1500 cc) 8703 3% No change
Mid Segment Cars (engine < 1500 cc) 8703 15% 17%
Large Cars (engine > 1500 cc) 8703 15% 20%
Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) 8703 15% 22%
Motor vehicles for transport of not more than thirteen persons, including the driver [falling under sub-headings 8702 10, 8702 20, 8702 30 or 8702 90] 8702 15% No change
Hybrid Mid Segment Cars (engine < 1500 cc) 8703 15% No change
Hybrid Large Cars (engine > 1500 cc) 8703 15% No change
Hybrid Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm) 8703 15% No change

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