Compensation Cess on Electric Vehicles of Engine Capacity Exceeding 4000 mm 15%

·        Motor Vehicles of Engine Capacity Not Exceeding 1500 cc Raised to 17% from 15%

·        Exceeding 1500cc other than SUVs 20% from 15%

·        SUVs including Utility Vehicles 22% from 15%

[Ref: Notification No. 5/2017-Compensation Cess (Rate) dated 11 September 2017]

In exercise of the powers conferred by sub-section (2) of section 8 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.1/2017- Compensation Cess (Rate), dated the 28th  June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 720 (E) dated the 28th June, 2017, namely:-

2.  In the said notification, in the Schedule,-

(i) for serial numbers 47 and 48 and the entries relating thereto, the following serial numbers and entries shall be substituted, namely:-

(1)

(2)

(3)

(4)

47

8703 40, 8703 60

Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion:

 

 

 

(a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles

Nil

 

 

(b) Three wheeled vehicles

Nil

 

 

(c) Motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm

Nil

 

 

(d) Motor vehicles other than those mentioned at (a), (b) and (c) above.

15%

 

 

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

 

48

8703 50, 8703 70

Following Vehicles, with both compression-ignition internal combustion piston engine [diesel-or semi diesel] and electric motor as motors for propulsion:

 

 

 

(a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles

NIL

 

 

(b) Three wheeled vehicles

Nil

 

 

(c) Motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm

Nil

 

 

(d) Motor vehicles other than those mentioned at (a), (b) and (c) above.

15%

 

 

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

 

(ii) for serial number 52 and the entries relating thereto, the following serial numbers and entries shall be substituted, namely:-

(1)

(2)

(3)

(4)

52

8703

Motor vehicles of engine capacity not exceeding 1500 cc

17%

52A

8703

Motor vehicles of engine capacity exceeding 1500 cc other than motor vehicles specified against entry at S. No 52B

20%

52B

8703

Motor vehicles of engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles. Explanation. - For the purposes of this entry, SUV includes a motor vehicle of length exceeding 4000 mm and having ground clearance of 170 mm. and above.

22%.

Previous Entry was:

SNo.

Chapter / Heading/ Sub-heading/ Tariff item

Description of Goods

Rate of goods and services tax compensation cess

47.

8703 40, 8703 50

Following Vehicles, with both spark-ignition internal combustion reciprocating piston engine and electric motor as motors for propulsion;

a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles

b) Three wheeled vehicles

c) Motor vehicles of engine capacity not exceeding 1200cc and of length not exceeding 4000 mm.

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

NIL

48.

8703 60, 8703 70

Following Vehicles, with both compression -ignition internal combustion piston engine [ diesel-or semi diesel ) and electric motor as motors for propulsion;

a) Motor vehicles cleared as ambulances duly fitted with all the fitments, furniture and accessories necessary for an ambulance from the factory manufacturing such motor vehicles

b) Three wheeled vehicles

c) Motor vehicles of engine capacity not exceeding 1500 cc and of length not exceeding 4000 mm.

Explanation.- For the purposes of this entry, the specification of the motor vehicle shall be determined as per the Motor Vehicles Act, 1988 (59 of 1988) and the rules made there under.

NIL

52.

8703

All goods other than those mentioned at S. Nos. 43 to 51 above

15%

[F.No.354/159/2017-TRU]