The GST Council has granted an exemption from Integrated GST and compensation cess for the new inclong BMW car for President Droupadi Murmu. The Rs 3.66 crore armoured sedan will replace the existing Mercedes-Benz S600 Pullman Limousine, and the tax waiver is because of the unique nature of the vehicle.
The rationale behind this is that the President's vehicle is not a commercial luxury item but a strategic asset to the state, essential for security of the President.
While the import of a luxury car normally attracts a hefty tax burden, including 28% IGST, basic customs duty, and additional cess, the fitment committee of the GST Council proposed a waiver.
Since the GST is a dual levy requiring the consent of both the central and state governments, the GST Council's approval was key for this exemption. The move is a collaborative effort to ensure that the President's Secretariat can acquire the vehicle with without the tax cost.
Exemptions of this nature are rare and are typically granted on a case-by-case basis for specific, non-commercial purposes in public interest.
The S600 Pullman Guard, currently part of the fleet is a custom-built, armored car equipped with advanced protective features such as ballistic and blast protection, reinforced floors, and multi-layered bulletproof glass.
The BMW's predecessor also has a self-sealing fuel tank and an independent oxygen supply system. The incoming vehicle is expected to have similar, if not more advanced, safety features.
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