Heavy bikes, yachts, private jets to attract 31% GST

Srinagar: Motorcycles of more than 350 cc engine capacity will attract a total of 31 percent tax under the GST regime, same as the tax incidence on private aircraft and luxury yachts.

According to the rate structure finalised by the GST Council here, all cars, buses, trucks and motorcycles including moped as well as personal aircraft and luxury yachts will attract a peak Goods and Services Tax (GST) of 28 percent.

All classes of cars and SUVs as well as motorcycles of more than 350 cc engine capacity will also attract an additional cess.

The cess for motorcycles with more than 350 cc engine has been kept at 3 percent, taking the total incidence of taxation to 31 percent.

This is the same as that for private aircraft and luxury yachts.

Small cars of less than four meter length and with petrol engine of up to 1200 cc will attract 1 percent cess on top of the peak rate.

Small diesel cars with engine of less than 1500 cc will be charged 3 percent cess.

Mid-sized cars, SUVs and luxury cars will all attract 15 percent cess, same as that for buses and vans that can carry more than 10 persons.

Hybrid cars of more than 1500 cc engine would also attract 15 percent cess.

Aerated drinks and lemonade will attract 12 percent cess on top of the peak rate while pan masala gutkha will be charged 204 percent cess on top of the peak rate from July 1, the scheduled date for rollout of the GST.

The Centre and states have agreed to impose cess on demerit and luxury goods under the GST regime, over and above the peak tax rate of 28 percent.

On tobacco, the cess will vary from 71-204 percent.

Also, scented zarda and filter khaini will attract 160 percent cess, while for pan masala gutkha it would be 204 percent.

Filter and non-filter cigarettes not exceeding 65 mm will attract cess of 5 percent plus Rs 1,591 per 1,000 sticks.

Non-filter cigarettes exceeding 65 mm but not exceeding 70 mm will attract cess of 5 percent plus Rs 2,876, while that for filter cigarettes the levy is 5 percent plus Rs 2,126 per thousand sticks.

For cigars, a hefty levy of 21 percent or Rs 4,170 per 1,000 sticks, whichever is higher, would be levied.

Branded gutkha will be slapped with a cess of 72 percent, while smoking mixtures for pipes and cigarettes will attract a levy 290 percent.

Besides, a clean energy cess will be levied on coal, lignite and peat production at the rate of Rs 400 per tonne.