Im­pact of GST on CVs

Commercial Vehicle - - WHAT'S INSIDE -

GST would have come into play by the time this copy will hit the stands. Turn­ing In­dia into a uni­fied com­mon mar­ket, al­beit with four slabs, GST for CVs ef­fec­tively trans­lates into a tax bracket of 28 per cent for trucks, not fit­ted with lift­ing or han­dling equip­ment, of the type used in fac­to­ries, ware­houses, dock ar­eas or air­ports for short dis­tance trans­port of goods; trac­tors of the type used on rail­way sta­tion plat­forms; part of

the fore­go­ing ve­hi­cles, in­clud­ing peo­ple movers for the trans­port of ten or more per­sons in­clud­ing the driver, and mo­tor ve­hi­cles for the trans­port of goods (other than re­frig­er­ated mo­tor ve­hi­cles). The 28 per cent GST tax slab also ap­plies to tanks and other ar­moured fight­ing ve­hi­cles, whether or not fit­ted with weapons, and parts of such ve­hi­cles. Trail­ers and semi­trail­ers; other ve­hi­cles not mechanically pro­pelled; parts thereof (other than self-load­ing or self-un­load­ing trail­ers for agri­cul­tural pur­poses and hand pro­pelled ve­hi­cles (hand carts, rick­shaws and the like for ex­am­ple) fall un­der the same slab as well. Fork­lift trucks other than work trucks fit­ted with lift­ing or han­dling equip­ment also come un­der its am­bit. Spe­cial Pur­pose Ve­hi­cles (SPVs) like break­down lor­ries, crane lor­ries, fire fight­ing ve­hi­cles, con­crete-mixer lor­ries, road sweeper lor­ries, spray­ing lor­ries, mo­bile work­shops and mo­bile ra­dio log­i­cal units have also been clas­si­fied un­der the 28 per cent slab rate. Cranes (in­clud­ing cable cranes; mo­bile lift­ing frames, strad­dle car­ri­ers and work trucks fit­ted with a crane) have been slot­ted into the 18 per cent GST tax bracket. Trac­tors (ex­cept road trac­tors for semi-trail­ers of en­gine ca­pac­ity more than 1800 cc) have been slot­ted in the 12 per cent tax slab. Agri­cul­tural trac­tors are claimed to have been slot­ted in the 18 per cent tax slab. The 12 per cent slab also ap­plies to elec­tri­cally op­er­ated ve­hi­cles. Biodiesel and mix­tures thereof, not con­tain­ing or con­tain­ing less than 70 per cent by weight of petroleum oils and oils ob­tained from bi­tu­mi­nous min­er­als are slated to be levied with 18 per cent GST. This slab will also ap­ply to re­frig­er­ated mo­tor ve­hi­cles. Pneu­matic tyres, of rub­ber used in buses or lor­ries, will be charged at 28 per cent. These in­clude re­treaded or used tyres, flaps and in­ner tubes.

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