Auto manufacturers seek clarity on Utility Vehicles definition

New Delhi, July 13 (KNN) Automobile companies are waiting for government’s notification on the Goods and Services (GST) Council’s decision to change the definition of Utility Vehicles (UVs), reported Business Standard.

The GST Council said on Tuesday that any vehicle of a length of 4 metre and beyond, with an engine capacity of 1,500 cc and more, and an unladen ground clearance of 170mm and above will be deemed a “UV”.

Along with a compensation cess of 22% the UVs will attract a GST rate of 28%.

Certain UVS, which to date have paid a compensation cess of 20% under the old definition, will be paying a 22% compensation cess once the aforementioned notification comes.

However, it is currently unclear which UVs will be impacted by this notification.

UV is currently the fastest-growing car segment in India.  (KNN Bureau)