In a development for India’s highest office, the President of India will soon be travelling in a new BMW, replacing the long-serving Mercedes-Benz S600 Pullman Limousine.
The new vehicle is valued at approximately Rs 3.66 crore. The decision is part of a periodic upgrade of the presidential fleet. This usually includes a variety of luxury and custom-built vehicles to ensure the head of state’s safety.
Under normal circumstances, the importation of such a high-end luxury vehicle would attract a significant tax burden. This includes a 28% Integrated GST or IGST, along with a basic customs duty and an additional cess, which can inflate the final cost significantly.
Recognising the nature of this import for a constitutional office, the fitment committee of the GST Council proposed an ad hoc exemption from the IGST and compensation cess.
This move, which required the consent of both the central and state governments, as GST is a dual-levy system, was recently approved by the GST Council. The GST Council’s decision to grant this ad hoc exemption has sparked discussions as such exemptions are not a common occurrence. These are typically granted on a case-by-case basis for specific, non-commercial purposes, often in the public interest.
The exemption for the President’s new sedan comes to its position as an essential and strategic asset for state security, rather than a commercial luxury item. This move has allowed the President’s Secretariat to acquire the vehicle without the tax cost.
The S600 Pullman Guard, that’s currently part of the fleet is known for its advanced protective features, including ballistic, heavy armor plating, reinforced floors, and multi-layered bulletproof glass. It also has a self-sealing fuel tank and run-flat tires ensuring the car can continue to move even after being damaged. There is also an oxygen supply system in case of a chemical attack.
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