Скачать или смотреть Taxes are upto 50% on Cars

**Important Note

GST compensation cess is different from Income Tax cess. Income Tax Cess is calculated on the “Tax amount” whereas GST compensation Cess is calculated on a “Transaction Value” i.e. Value of a Car (*Taxable Value of Supply to be precise) not on Value of GST amount. This is why effective GST increases this much.

Captions:

GST is applicable at flat 28% on cars for private use but the compensation cess may differ based on key factors such as:-

🔸Size of the car’s engine and
🔸Length of the car.

Such specification are in line with the Motor Vehicle Act, 1988.

➡️ For LPG, CNG, Petrol Vehicles:-

Car using LPG, CNG, Petrol below 1200cc and “below” the length of 4m = 28% GST + 1% Cess

Car using LPG, CNG, Petrol below 1200cc and “above” the length of 4m = 28% GST + 15% Cess

Car using LPG, CNG, Petrol above 1200cc irrespective of it’s length = 28% GST + 22% Cess

➡️ For Diesel Vehicles:-

Car that run on diesel, below 1500cc and below 4m of length = 28% GST + 3% Cess

Car that run on diesel, below 1500cc and above 4m of length = 28% GST + 20% Cess

Source: My loan care, ET Auto, Paisa Bazaar
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