Increase in rate of the Compensation Cess on motor vehicles



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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