Goods and Services Tax (GST) applies to the manufacture and sale of all Sports Utility Vehicles (SUVs) in India, with some models also attracting an additional compensation cess of up to 22%.In this article, we discuss the applicability of GST on SUVs in India, including the HSN code and GST rate on SUV cars, the applicable cess on SUVs, and the definition of SUVs for discerning the rate of cess.Key TakeawaysThe 56th GST Council meeting has announced important updates with changes effective from 22nd September 2025:Motor vehicles with both spark-ignition internal combustion engines and electric motors (engine capacity exceeding 1,200 cc or length exceeding 4,000 mm) will see the GST rate rise from 28% to 40%.Diesel or semi-diesel vehicles with electric motors (engine capacity exceeding 1,500 cc or length exceeding 4,000 mm) will also have GST increased from 28% to 40%.What is an SUV? A sport utility vehicle (SUV) is a type of car that combines certain features of passenger cars with features from off-road vehicles. For instance, a raised ground clearance or a four-wheel drive. However, for compensation cess purposes, the GST Council has a separate definition for SUVs, which we have explained in the later part of the article.There are various types of SUV cars in India, ranging from compact models to full-size luxury ones with seven seats. As a result, different models are liable to different GST and compensation cess rates. GST Rate on SUVsGST is levied on SUVs at 28% unless the SUV is an electric vehicle. Electric vehicles in India attract a GST rate of 5%. DescriptionGST RateElectrically-operated vehicles5%Other motor cars and motor vehicles (other than those used for the transport of 10 or more persons)28%In addition to GST, SUVs are liable to a compensation cess.

Despite its price point, the iPhone has grown to be a very popular phone brand in India. However, iPhone buyers are always apprehensive about GST on iPhones as it forms a substantial part of the cost. In this article, we decode the GST rate on iPhone mobiles, the type of GST on iPhones, the input tax credit available, import duties on iPhones, and more.For more information on GST on mobile phones, you can refer to our article here.GST on iPhonesBefore the implementation of GST, there were various taxes levied by the Central and state governments, such as Customs duty, Central Excise, and VAT, at various stages of value addition. Now, post the implementation of GST, there is still Customs Duty levied on iPhones as they are imported into India from countries like China.In fact, the reason why iPhones are as expensive as they are is because of the amount of indirect taxes forming a part of the value, which at present, includes Customs duty and GST.GST Rate on iPhones in IndiaUnder the GST law, the rate applicable on mobile phones is 18%. Hence, the GST rate on iPhones is 18%.

Since GST came into effect, there have been several disputes regarding its implementation, rates, refunds, etc. Also, due to the lack of specialised branches, all the GST-related matters were being referred to High Courts, for which the taxpayers faced many challenges. To address these issues, the GST Council approved the formation of the GST Appellate Tribunals or GSTATs. In this article, we discuss what the GST Appellate Tribunal is, understand the GST Appellate Tribunal members' eligibility and age requirements, look at the procedure for application to the Appellate Tribunal under GST, and cover other important details.Latest Updates The 56th GST Council meeting 2025 should clarify whether to revive the National Anti-Profiteering Authority (NAA) or empower the GST Appellate Tribunal to accept new anti-profiteering complaints, especially amid expectations of GST rate and slab reductions. 22nd June 2024 In the 53rd GST Council meeting held on 22nd June 2024 in New Delhi, the Council recommended the fixing of monetary limits for filing of appeals under GST as follows:     GSTATs: Rs. 20 lakhs     High Courts: Rs. 1 crore     Supreme Courts: Rs.

The financial year 2024-25 is coming to an end. A business owner must ensure to close the GST books with utmost precision and accuracy, because failing to do so can adversely impact the audit report. Also, it’s not just about avoiding the negative repercussions an organisation can face, it's about paving the way for a smooth transition into the next year.For this, you need to have the compliance and filing guide that will ensure you tick all the GST compliance checkboxes for FY 2024-25. Read and find out a comprehensive 43-pointers GST checklist to avoid the last-minute hassles.GST Checklist for a Seamless 2024-25 FY end ComplianceTurnover and tax liabilityReconcile the turnover (including credit notes/debit notes) reported in books vis à vis GSTR-1 vs GSTR-3BAmend and rectify any mistakes or omissions made in GSTR-1 or GSTR-3B returns for the previous financial year by March 2025 returnse-Way bill and e-invoices data to be reconciled with the Sales Register (SR)Check and report other incomes, such as fixed asset sales and miscellaneous incomeTax paid on advances received against servicesRealisation of export proceeds within one yearCompliance of supply to merchant exporters (0.1%)Input Tax Credit (ITC) availed and utilisedReconciliation of ITC General Ledgers (GLs) vis-à-vis balance appearing in the electronic credit ledger on the GST portal.Review the expense ledgers for any expenses on which ITC is eligible but was missed claiming.For example: GST on bank charges.Reconciliation of ITC register vis à vis GSTR-2B:ITC availed during the FY 2024-25 should match GSTR-2BReverse the ITC not appearing in GSTR-2BFollow up with vendors regarding any missing invoices and adopt the Invoice Management System (IMS) available on the GST portal to streamline the communication of incorrect purchase invoices/ITC for the financial year. Additionally, ensure timely resolution of invoices marked as 'Pending' in the IMS.Review of ITC utilisation entries passed in the books of accounts vis à vis the electronic liability ledger as per the GST portal. Ensure that the blocked ITC under Section 17(5) has not been claimed.

The COVID-19 pandemic has changed the way the world does business. While almost every business function was impacted, the effects of which might last forever, the finance function has probably seen the most resounding changes. Even those businesses that ran completely offline today either have their accounting or tax compliance digitised or have begun to accept digital payments. But this was just the beginning.So, here are seven trends to watch out for in 2022 that will shape the future of finance.RegtechA term that has become popular in recent years, regtech, is technology to manage regulatory processes better. The main processes include regulatory monitoring, compliance, and reporting.

In July 2022, the government made certain changes to the format of the GSTR-3B return, notably changing the procedure for reporting data in Table 3 and Table 4 of the form. The changes were first announced in July via Notification No. 14/2022 – Central Tax, and thereafter, in September, the GSTN released the format for reporting data in Table 4 of the GSTR-3B. The new format of Table 4 of the GSTR-3B has now been updated to include a more detailed split of input tax credit (ITC) that is eligible and ineligible, restricted, reversed and reclaimed, along with other similar ITC information. In this article, we discuss the new changes to the Table 4 format and how taxpayers need to report their ITC in the GSTR-3B going forward.Contents of Table 4 of GSTR-3B and Applicability Table 4 of the GSTR-3B return contains the break-up of all ITC-related information for a particular return period. This includes ITC available on the import of goods and services, capital goods, inward supplies liable to reverse charge, ITC distributed by an Input Service Distributor (ISD), etc.

October 2022 witnessed the second highest GST collections ever at Rs.1,51,718 crore, only second to April 2022, which had a GST collection of Rs.1,67,540 crore. Despite the GST collections now crossing Rs.1.4 lakh crore for eight months in a row, this is only the second time since the inception of GST that the collections have crossed the Rs.1.5 lakh crore mark. GST Collection September 2022 was reported at Rs.1,47,686 crores.Break up of GST Collections for October 2022The GST collections comprised Rs.26,039 crore CGST, Rs.33,396 crore SGST, and Rs.81,778 crore IGST (including Rs.37,297 crore GST collected on the import of goods). The cess collections stood at Rs.10,505 crore (including Rs.825 crore collected on the import of goods, according to a PIB report. According to the report, the government settled Rs.37,626 crore and Rs.32,883 crore in October as CGST and SGST, respectively, from the IGST collections. Further, the Centre also settled Rs.22,000 crore on an ad hoc basis equally between the Centre and the states. This has brought the total revenue after ad hoc settlements to Rs.74,665 crore for CGST and Rs.77,279 crore for SGST.Analysis of the GST Collection for October 2022The record GST collections for October could be a result of revenue due to quarter-end filings that marked the end of the second quarter.

All registered taxpayers under GST are required to file an annual return in Form GSTR-9 irrespective of the turnover of an entity. Filing GSTR-1 and GSTR-3B is mandatory before filing the annual return. The annual return is a compilation of data filled in GSTR-1 and GSTR-3B.Even if a taxpayer identifies that certain data is incorrect in GSTR-1/GSTR-3B, the same cannot be corrected in GSTR-9. The intent of the form is just the aggregation of data and not rectification. However, the books of accounts of an entity should be in line with the returns filed.

Claiming ITC (input tax credit) refers to claiming the credit of taxes paid on an entity’s inward supplies, which are used to carry out business. The main aim behind the introduction of GST was to avoid the cascading effect of taxes. Section 16 of the Central Goods and Services Tax (CGST) Act lays down the conditions for ITC, along with certain provisions and restrictions.The mechanism of ITC allows the businesses to reduce their output tax liability by claiming credit of taxes already paid on their purchases. Thus, claiming maximum ITC is important to reduce the output tax liability and reduce overall working capital impact.How to Claim Maximum ITC Under GST?Here are Seven ways to claim maximum ITC under GST-Regularly follow-up with your vendors- Taxpayers should regularly follow up with their vendors to upload their sales invoices in the GSTR-1 on time. When the suppliers upload their sales invoices in the GSTR-1 return on time, the GSTR-2A/2B of the recipient taxpayer will get auto-populated with the ITC values, and the recipient will be able to claim this credit in their GSTR-3B return.Identify tax payable on an RCM basis- Under reverse charge, a recipient must pay the tax instead of the supplier.

The government introduced Rule 86A to block the use of fraudulently availed ITC and thereby protect the interests of the revenue.What is Rule 86A under GST?Rule 86A was introduced by the government vide Notification no. 75/2019 dated 26.12.2019 to block fraudulently availed ITC. The main purpose behind the introduction of this Rule was to block the use of fraudulently availed ITC. As per this Rule, a Commissioner or any officer authorised by him can block the ITC available in the electronic credit ledger of the taxpayer if he has ‘reasons to believe’ that he has fraudulently availed ITC.The Commission shall record the reason in writing for blocking ITC.What are the conditions under which ITC in the electronic credit ledger can be blocked?The commission or any officer authorised by him, not below the rank of an Assistant Commissioner, can block a taxpayer’s ITC provided he has reasons to believe that the ITC is claimed fraudulently or the ITC is ineligible as follows-The tax invoices basis that ITC is being claimed has been issued by a registered person who is found to be non-existent or is not conducting business from the place for which the registration has been obtained. The ITC is available on an invoice for which supply has not been received.ITC is availed on an invoice on which tax has not been paid to the government.ITC is availed by a registered person who is found to be non-existent or is not conducting business from the place for which the registration has been obtained.The registered person does not have the invoice or debit note basis which he is claiming ITC.The Commissioner may allow the use of credit if he finds that the conditions for disallowing the credit no longer exist.\Is blocking of ITC by the GST officer legal?As per section 16(1) of the CGST Act, all registered taxpayers who have paid tax on their inward supplies used to further their business can claim ITC on such taxes paid.