GST cess hike impact: Luxury cars, SUVs become more expensive

Prices for Innova MPV increased by Rs 78,000 while Fortuner SUV witnessed a price surge of Rs 1,60,000

Post GST roll-out, the GST council had charged auto industry a tax of 43% (28% GST + 15% cess). On September 9, the Council had raised the cess by 2%, 5% and 7% across three different segments taking the taxes to as high as 50%. 

Cess on mid-segment cars that exceed four meters in length with an engine capacity of above 1200 cc in petrol or above 1500 cc in diesel has been increased by 2 per cent. These cars will attract 45 per cent GST (28 per cent GST + 17 per cent cess) as compared to 43 per