New Delhi. You pay tax on whatever goods you buy. Tax is the main source of income for the government. The Product and Service Tax (GST) was implemented on 1 July 2017 by removing various types of taxes imposed on products and goods in India. Currently, four types of tax slabs have been created under GST according to the product, which include tax slabs of 5%, 12%, 18% and 28%. Let us tell you that you have to pay 28% GST on vehicles sold in the country. At the same time, a separate cess is also levied according to the size, engine capacity and fuel type of the vehicles.
In the case of vehicles, this tax goes above 50%. If you buy an SUV in India, you pay more than 50% tax to the government through GST. Recently, a picture of the price breakup receipt of an SUV shared by a person on X went viral, after which it has become a topic of discussion.
Tax on SUVs is more than 50%
Let us tell you that the government levies 28% GST on big vehicles like SUVs. In this, the central tax and the state government have an equal share. At the same time, an additional cess of 20-22% is also levied on SUVs. This makes the tax on an SUV almost 50%.
A person named Sumit Bahl shared a picture on his Instagram handle in which information was given about the tax imposed on the ex-showroom price of the diesel model of Mahindra XUV700. According to the post, the actual price of the SUV is Rs 14,58,738.78, while a total cess of Rs 4,08,459.46 has been imposed on it at the rate of 28% GST and Rs 2,91,756.76 at the rate of 20% cess. If the tax is combined, then this SUV worth about 14.50 lakhs is available to the customer for Rs 21,59,000 with GST. At the same time, the customer is paying a tax of about Rs 7 lakh.
If buy any SUV in India, you have to pay over 50% in taxes to the government of India.
You will be paying these taxes after paying taxes on your salary and capital gains.
This is India's growth story pic.twitter.com/Tz8U81R1Sg
— Sumit Behal (@sumitkbehal) September 5, 2024