Toyota Innova, Kia Carens are now getting a price hike?

Toyota Innova, Kia Carens are getting more expensive ? GST council adds 22% on MPVs.

Listen to this news

The Excise Tax Board will increase the tax on MPVs by 22%. After the Goods and Services Tax (GST) Board redefines vehicles, it will be more expensive to buy MPVs with powerful engines in India.

SUVs are subject to a maximum GST rate of 28%. The council has now said that the normal GST rate for all electric vehicles in the same class it has chosen with the additional tax will be applicable.

The GST Committee, chaired by Finance Minister Nirmala Sitharaman, met on Tuesday (July 11th) to discuss the issue with state finance ministers. Whatever the name, if the manufacturer decides to include this vehicle in the service department, these vehicles will now be taxed at 22% plus GST.

In addition to 28% SCT, SCT will be collected from these vehicles. According to the commission, all cars with a length of more than 4,000 mm, an engine displacement of more than 1,500 cc, and a ground clearance of more than 170 mm will be subject to a similar tax.

Now, cars will be subject to it again: tax rates vary between 1% and 22% depending on the type of vehicle. Responding to the development of the Shashank Srivastava, Managing Director (Marketing and Sales) of Maruti Suzuki India, said that the decision is a clear and unambiguous definition of the car, which enjoys the highest crossover, especially with ground clearance.

Srivastava said, “According to various media reports, the highest tax rate of 22% currently applies to all vehicles that meet three criteria: length over 4 m, engine over 1,500 cc, and unladen ground clearance over 170 mm."

Srivastava also said that the price increase is unlikely to affect Maruti Suzuki, as the company has just launched the invicto MPV in this segment. However, since the invicto is a pure hybrid, it will likely avoid the 22 percent price tag. Other companies have not yet responded to this question.

MPVs like the Toyota Innova Crysta and HyCross, Kia carens and other MPVs should be affected by the decision. All automakers have to put the additional tax burden on buyers, which will increase the showroom prices of these cars in the coming days.

---

---