Key highlights:

  • Car makers are expected to pass this hike to consumers in the form of a price hike soon
  • GST Council approved increase the GST cess on mid-size cars, large cars and SUVs
  • Mahindra and Mahindra, Toyota Kirloskar Motor, Audi, Mercedes-Benz and JLR India are planning to pass on the increased cess

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With the hike in the goods and service tax (GST) cess on mid-size cars, large cars and SUVs being implemented on Monday following the GST Council's decision, the car makers are expected to pass this hike to consumers in the form of a price hike.

The GST Council on Saturday announced that it will increase the GST cess on mid-size cars, large cars and SUVs by 2%, 5% and 7%, respectively. This would take the total taxes (GST + Cess) to 45%, 48% and 50% for these three segments.

Hike in GST cess of mid, large cars, SUVs to take effect from tomorrow

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