Cabinet may hike in GST cess on cars


Team Udayavani, Aug 28, 2017, 10:08 AM IST

New Delhi : The Cabinet may this week consider issuing an ordinance to increase the cess on mid-size, large cars and SUVs, to 25% from 15% under the GST regime at present.

The GST Council, the apex tax rate-setting body under the Goods and Services Tax regime, had on August 5 approved raising cess on SUVs, mid-sized, large and luxury cars that had become cheaper post GST rollout on July 1. But, for raising the cess requires an amendment to the Schedule of Section 8 of the GST (Compensation to a State) Act, 2017.

“The Cabinet will in the next few days consider amending that through the issue of an ordinance,” an official said. Views of ministries like road, transport and highways and heavy industries will be taken before hiking of the cess, the official added.

Under GST, a cess was levied on demerit goods like cars, tobacco and coal, to create a corpus for compensating states for any loss of revenue from their taxes like VAT beingunified with central levies like excise duty and service tax in the GST. Cars attract the top tax rate of 28%. On top of this, a cess of one to 15% is levied for the creation of the state compensation corpus.

To rectify the anomaly, the GST Council, headed by Union Finance Minister Arun Jaitley and comprising of representatives of all states, had on August 5 recommended that the Central government move legislative amendments required for increasing the maximum ceiling of cess leviable on motor vehicles to 25% from the present 15%.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

After Yogi’s ‘batenge, katenge’ slogan, PM pitches for unity with ‘Ek hai, toh safe hai’ message

“Coming soon.. 2025”: KL Rahul and Athiya Shetty announce first pregnancy

Mangaluru: Unauthorized bus stops at signals fuel traffic woes and safety concerns

SC notice to Karnataka, DK Shivakumar on CBI plea against withdrawal of consent by state govt

Will remain active in politics till my last breath: JD(S) patriarch & ex-PM Deve Gowda

BJP calls Congress govt ‘laughing stock’ as ‘samosa politics’ heats up in Himachal

Related Articles More

UP women’s body proposes men shouldn’t tailor women’s clothes or cut their hair

After Yogi’s ‘batenge, katenge’ slogan, PM pitches for unity with ‘Ek hai, toh safe hai’ message

Bank fraud: ED seizes jewellery, cash worth over Rs 1 cr in raids against Bhopal-based company, directors

No greater feeling than serving those in need: Outgoing CJI D Y Chandrachud

CJI Chandrachud: A legacy of landmark verdicts that shaped society and some controversy too

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

Use Carnatic music to promote Kannada language: Nirmala Sitharaman

Udupi: Car collides with bike; Rider injured

UP women’s body proposes men shouldn’t tailor women’s clothes or cut their hair

NSE, BSE to be closed on Nov 20 for Maharashtra assembly polls

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.