Suv and Muv
Suv and Muv

SUVs and MUVs would cost more with the GST Cess Increase, which is bad news for car buyers.
Purchasing an MUV in India with a strong engine will cost more due to the GST Council’s categorization of which vehicles will fit within the utility vehicle category. SUVs used to be subject to the highest GST rates, which are currently 28%.
All multi-utility vehicles that the council has determined to be in the same category will be subject to a new uniform GST rate and an additional cess.
GST Council has made desicion to clarify all matters regarding this because there has been a great deal of confusion around this classification.

Suvs and Muvs specification

A vehicle is considered to be an SUV if it satisfies the definition of the term by offering great driving dynamics both on and off-road, as well as having a durable design and dependable performance. Although a wide range of vehicles can be categorized as SUVs, those with 4×4 capabilities are sometimes regarded as the genre’s pinnacle.
The definition of an SUV has been established by the Indian GST Council. In this context, SUVs are classified as vehicles longer than four meters, equipped with 1,500cc engines or larger, and with a minimum 170 mm ground clearance when empty.

The GST Council decided to do away with the differential rate of compensation cess at its 50th meeting on Tuesday and raise the cess rate for all Utility Vehicles (UVs) to 22%, a 2% increase.

The council has decided to include all of them, regardless of what you want to name them—SUV, MUV, or MPV.

The council has resolved to impose a 22% compensation cess to the 28% GST on any vehicle that meets specific requirements and has a name.
A 22 percent compensatory cess would be added to the standard GST of 28 percent for any vehicles having a length of more than 4000mm, an engine displacement of more than 1.5 liters, and a ground clearance of more than 170mm.
Customers won’t likely be affected by the classification change because most sub-compact SUVs, if not all of them, have engines that are under 1,500cc.

The higher cess is expected to be added to the final purchase price by SUV manufacturers, increasing the cost to consumers of purchasing an automobile that meets the aforementioned three requirements and is categorized as an SUV.

If they comply, the cost of well-known vehicles like the Maruti Suzuki Ertiga and Grand Vitara as well as the Toyota Hyryder, Toyota Hycross, Kia Carens, Seltos, and Creta will rise.

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