More than 1200cc petrol engines and more than 1500cc diesel engine cars will now have 40% GST. This will increase their price. Its goods such as cold drinks and pan masala have also been brought under 40% GST.
GST Slab on Luxury Goods: The GST Council met on Wednesday. It approved the creation of a new slab of 40% for the objects of sin and luxury. In the meeting, it was decided to impose 18% GST instead of 28% on a bike of 350cc and less engine capacity. Along with this, GST was also reduced from 28% to 18% on small cars. On the other hand, GST has been increased to 40% on a large engine car-bike. This will increase their price. The new changes will be applicable from 22 September.
Finance Minister Nirmala Sitharaman said that the highest slab of 40% would be imposed on goods and premium items that damage health. These include large bikes and cars. The Finance Minister said,
A special rate of 40% was proposed. It has got approval. This will only apply to chewed tobacco, zarda, unrewd tobacco and beedi, such as pan masala, cigarette, gutkha and other tobacco products. All products, including additional sugar or other sweet substances contain aerated water (aerated waters) or delicious, caffeinated beverages, carbonated beverages of fruit beverages or carbonated beverages with fruit juice and other non-alcoholic beverages, except special products, will come under all 40%, except special products.
Which cars will be charged 40% GST?
- All petrol -powered cars of more than 1200cc and all diesel cars worth more than 1500cc.
- All bikes with engine more than 350cc.
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Note- Under GST, small cars mean engine capacity up to 1200 cc and petrol, LPG or CNG cars with a length of up to 4000 mm. At the same time, there are engine capacity up to 1500 cc and diesel cars with a length of up to 4000 mm.
Apart from this, motor vehicles in the category of utility vehicles, whether they are called sports utility vehicle (SUV), multi-utility vehicle (MUV), multi-prostrate vehicle (MPV) or cross-over utility vehicle (XUV) by any name, whose engine capacity is more than 1500 cc, more than 4000 mm or more on grounds, 170 mm or more than 4000 mm or more than 1500 cc, which has engine capacity of 1500 cc and more than 4000 mm The GST rate of 40% will also be applicable without any cess.
Also read- Modi government’s big decision on GST, 12% -28% slab ends, everyday goods will be cheap
Which other goods will be charged 40% GST?
- Personal used aircraft, helicopters, boats taken for pleasure or sports and other ships.
- Paan Masala, Tobacco, Gutka, Bidi Aadi.
- Sugar or sweet substance mixed with aerated water, delicious drinks or caffeinated drinks.