GST Council Decided to Raise Cess by Up to 7%

The increased Goods and Services (GST) cess on mid- sized, luxury and SUV cars will come into effect on Monday.

The approximate price increase in Delhi for the Toyota Innova Crysta will be upto Rs 78,000, while the Fortuner will cost upto ₹ 1.60 lakh more. The Corolla Altis too will see a price revision in the bracket of Rs 72000 while the Platinum Etios price will increase upto Rs 13,000. The price of Hybrids and small cars remains unaffected post the cess hike.

The GST Council on September 9 decided to hike cess on mid-sized cars by 2 per cent, taking the effective GST rate to 45 per cent.
Also, cess on large cars has been hiked by 5 per cent, taking the total GST incidence to 48 per cent while that of SUVs by 7 per cent to 50 per cent.
When  GST kicked in in July this year, the price of the Innova had gone down to nearly Rs 1 lakh, while the Fortuner was more than Rs 2 lakh cheaper. The price of the Corolla Altis too had gone down by Rs 98000 while the Etios cost RS 24500 less. By that standards then, the cars are still cheaper than the pre-GST rates and that’s probably the only consolation in this situation.

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