GST Council has decided hiking the CESS for SUVs. The decision will impact the prices of SUVs – from midsized cars to those of larger ones. While the midsized cars would receive a price hike of 2%, those of SUVs would have an increase in rate of 7%. Into the large cars, there will be a 5% hike in their prices.
With the introduction of these hikes in CESS, the prices of SUVs, large cars and midsized cars, would have a total tax percent of 50%, 48% and 45%. It has to be seen how this impacts in the way, customers buy cars.