CBEC Notifies Increased Compensation Cess Rates for Specified Motor Vehicles

CBEC Notifies Increased Compensation Cess Rates applicable for Specified Motor Vehicles w.e.f. 11 Sept. 2017

In line with the recommendations of the 21st Meeting of the GST Council (dt. 9 Sept. 2017), the CBEC has issued Notification for increased compensation cess rates applicable on specified motor vehicles w.e.f. 11 Sept. 2017.

It may be noted that the GST Council has recommended moderate increase in rate of compensation cess on certain specified motor vehicles (SUVs/ Cars), as under:

i) Middle Segment Cars (engine capacity upto 1500 cc): cess rate increased from 15% to 17%;

ii) Large Segment Cars (engine capacity above 1500 cc except SUVs): cess rate increased from 15% to 20%; and

iii) Sports Utility Vehicles (SUVs) (length above 4000 mm + engine above 1500 cc + ground clearance 170 mm and above): cess rate increased from 15% to 22%.

For all other motor vehicles, there is no change in the rate of compensation cess and existing rates will continue to be applicable.

Cess Rate on Motor Vehicles Increased: CBEC Notification 5/2017 Compensation Cess Rate dt. 11 Sept. 2017

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Highlights of Recommendations of 21st GST Council Meeting at Hyderabad

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