New Delhi: The GST Council is likely to clarify on the definition of multi utility vehicles (MUVs) and crossover utility vehicles (XUVs) for levy of 22 per cent compensation cess over and above the 28 per cent GST rate, sources said.
The Council is expected to clarify on the issue in its next meeting on July 11, they said.
The Fitment Committee, comprising tax officials from the Centre and states, has recommended to the GST Council to define MUVs and XUVs at par with the sports utility vehicles (SUVs) for the purpose of Goods and Services Tax (GST).
The committee has recommended that all utility vehicles, by whatever name called, would attract 22 percent cess provided they meet three parameters -- length greater than 4-metre, engine capacity greater than 1500 cc and ground clearance more than 170 mm.
The GST Council, chaired by the Union finance minister and comprising her state counterparts, had in December last year clarified on the definition of SUVs. At that time, some states had asked for a similar clarification for MUVs.
Separately, the Fitment Committee also recommended that Integrated GST (IGST) be exempted on cancer medicine, Dinutuximab (Quarziba), imported by individuals for personal use. Currently, the medicine import attracts 12 percent IGST.
It also recommended IGST exemption on medicines and food for special medical purposes used in the treatment of rare diseases which are imported for personal use subject to existing conditions and when imported by Centres of Excellence or any person or institution on recommendation of any of the listed Centre of Excellence.
Currently, such imports attract 5 per cent or 12 percent IGST.
SUV stands for Sport Utility Vehicle, XUV means Crossover Utility Vehicles (mainly vehicles that are neither SUV nor an MUV, rather a crossover) while MUV or MPV stands for Multi Utility Vehicle or Multi Purpose Vehicle. While most SUVs are oriented for off-roading, an MUV/MPV is more of a van suited for large families and hauling cargo.
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