The GST Council is expected to define multi-utility vehicles (MUV) and crossover utility vehicles (XUV) in order to collect a 22 per cent compensation cess over and above the 28 per cent GST slab rate, according to the sources. The council will make it clear in its next meeting which will be held on July 11, added the sources.
The GST Council has been advised by the Fitment Committee, comprising tax officials from the Centre and States to define MUVs and XUVs equaling sports utility vehicles (SUVs) in order to segregate each to levy GST.
The committee advised that all the utility vehicles irrespective of their name, would be liable to 22 percent cess if they meet certain criteria. The committee said these criteria would be length greater than 4 metres, engine capacity greater than 1500 cc, and ground clearance more than 170mm.
The GST Council, chaired by the Union Finance Minister and comprising her state counterparts, held in December last year, the clarification on the definition of SUVs also had been given. After that discussion, similar clarification for MUVs had also been requested by some states.
Individually, it had been also recommended by the Fitment Committee that the cancer medicine, Dinutuximab (Quarziba) imported by individuals for personal use should be exempted from Integrated GST (IGST). At present, the medicine import is subject to 12 per cent IGST.
The Fitment Committee also recommended that IGST should be exempted from various other medicines and food including- drugs and food for special medical purposes used to treat rare diseases which are imported for personal use for existing conditions. Also, the same is imported by Centres of Excellence or any person or institution on suggestions of any of the registered Centre of Excellence.
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At present, imports of the above-mentioned are subject to 5 per cent or 12 per cent IGST.
