Big GST cut may rev up demand for small cars, hatchbacks likely to attract 18% tax against 28% now

Small cars are likely to be placed in the 18% tax slab, substantially reducing the tax burden on them, people familiar with the matter said. Small cars of 4 metres and less in length and engine capacity up to 1,200 cc (petrol, CNG and LPG) now attract 28% GST and 1% cess. Large cars and SUVs are likely to face the special rate of 40%, they said. Currently, these vehicles attract 43-50% tax, which includes GST and cess.

from Auto-Industry-Economic Times https://ift.tt/Ni3RqDs