The GST council is to clarify on 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, reported news agency PTI. The Council is expected to clarify on the issue in its next meeting on 11 July The Fitment Committee, which has tax officials from the Centre and states, 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).
It has recommended that all utility vehicles, by whatever name called, would attract 22 per cent ces. This is 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 had in December 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 per cent 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.
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