The GST Council on Saturday clarified what constitutes ‘hot-selling SUVs’ which will attract the 22 per cent cess in addition to a 28 per cent GST. However, analysts said the clarification itself is ambiguous and would lead to future disputes.

“The higher rate of cess is applicable to motor vehicles fulfilling four conditions — popularly known as an SUV, engine capacity of 1500cc, length beyond 4,000 mm and a ground clearance of 170 mm.”

Asish Philip, partner, Lakshmikumaran and Sridharan Attorneys said: “Words like ‘popularly known as SUV’ will be the subject matter of interpretation and future disputes.”

Ravi Bhatia, director, JATO Dynamics, said: “The implication of the clarification is that hybrid electric vehicles and plug-in hybrid electric vehicles, which use batteries to power an electric motor and another fuel such as gasoline, would be impacted and would attract the new cess rate.”

Meanwhile, Central Board of Indirect Taxes chief Vivek Johri on Saturday said online games where winning is dependent on a certain outcome would attract a 28 per cent GST on the full bet value.

The department would go by the view that 28 per cent GST is payable on full bet value put in by a player, and not net of margins.