GST Council Slips Mahindra Thar from SUV Category, New Price Expected

The GST council’s 48th meeting would have incorporated amendments in the SUV segment in India. Under the guidelines, Mahindra Thar has been removed from the SUV category, resulting in less tax.

Mahindra Thar is a market leader and is the top-rated 4X4 SUV available in the market at present. In 2020, Mahindra Thar obtained a facelift that allowed the brand to broaden its presence in the SUV sector. INR 13.58 lakh is the present ex-showroom price of Mahindra Thar in India.

Goods and Services Tax (GST) officials would make the criteria for the vehicles to count under the segment of SUVs in India. Beneath that, when the length of the car exceeds 4000 mm, engine capacity is over 1,500cc, and ground clearance is over 170mm, then the car would count as SUV. While those cars who lose miss the same then the car would not come under the SUV segment.

The ground clearance of Mahindra Thar is 226 mm and the engine has a capacity of 1500cc, while the length of Mahindra Thar is 3985 mm hence the same would not be said to be counted as SUV.

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For the tax implications, the department found that there is a 28% GST obligation and 22% cess or 50% total tax on the SUV segment in India. Cess would lay on the length of the car length, its type (petrol/diesel), and the displacement of the engine. The non-SUV category will take lower cess. The cost of the Mahindra Thar is reduced as it has been eliminated from the SUV segment people could enjoy the same who looking to buy that.