According to reports, the GST Council is expected to clarify the definition of multi-utility vehicles (MUVs) and crossover utility vehicles (XUVs) for the purpose of levying a 22% compensation cess in addition to the GST rate of 28%.
At its next meeting on July 11, the Council is anticipated to provide clarification on the matter. The GST Council has been advised by the Fitment Committee, which is made up of tax authorities from the federal government and the states, to classify MUVs and XUVs similarly to sports utility vehicles (SUVs) for the purposes of the Goods and Services Tax (GST).
The committee has suggested that all utility vehicles, regardless of their name, be subject to a 22% cess provided that they satisfy three requirements: a length of at least 4 meters, an engine displacement of at least 1500 cc, and a ground clearance of at least 170 mm. The GST Council, presided over by the Union finance minister and made up of her state equivalents, provided clarification on the meaning of SUVs in December of last year. Several states have then requested a similar clarification for MUVs.
Separately, the Fitment Committee suggested that people importing Dinutuximab (Quarziba) for personal use be excluded from the Integrated GST (IGST). Currently, imports of medicines are subject to IGST of 12%.
Additionally, it suggested that IGST be waived for the importation of goods for use in the treatment of rare diseases that are imported for personal use under certain circumstances and when recommended by one of the listed Centers of Excellence or by any other person or institution. Currently, these imports are subject to IGST of 5% or 12%.