CHENNAI: The Society of Indian Automobile Manufacturers (SIAM) on Wednesday petitioned the government to waive the extra 15 per cent cess on large ambulances. Under the GST regime, vehicles with a capacity of 10-13 persons are levied 28 per cent GST along with a 15 per cent cess. SIAM has requested the government to levy only the 28 per cent GST.
While all ambulances enjoyed excise duty concessions in the pre-GST era, the GST Council has exempted compensation cess only on ambulances that can carry up to nine persons. “Cess on 10-13 seater ambulances has not been withdrawn under the GST. It is an anomaly and the government should exempt bigger ambulances as well from 15 per cent cess as has been done in the case of units which can carry up to nine persons,” said SIAM deputy director-general Sugato Sen.
According to SIAM, manufacturers who make such vehicles have already suffered due to the increase in taxation, with sales taking a beating. “Sales have been impacted as people who had booked such vehicles are refusing to take deliveries since costs have gone up,” Sen said, adding that there was another anomaly, with cess exemption for ambulances applicable only to factory-fitted vehicles.