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7
August 2017
Sports
utility vehicles (SUVs), racing cars, station wagons and 10-seater cars, which
includes some high-end cars and also cars used for rentals, may soon become
more expensive as the GST Council has asked the government to raise the cess
cap to 25% from the current 15%, an official statement said. The Total Investment & Insurance Solutions
After
the cap on cess is raised, the total tax under Goods and Services Tax (GST) on
such motor vehicles may go up to 53% from the current 43% as these have been
placed under the highest tax slab of 28%. The
Total Investment & Insurance Solutions
The
decision was taken at the Council's meeting on August 5. Though the Centre has
been advised to increase the ceiling on cess, the decision on when to bring it
into effect is still pending. The Total
Investment & Insurance Solutions
"The
GST Council considered the issue of cess leviable on motor vehicles in its 20th
meeting held on August 5 and recommended that central government may move
legislative amendments required for increase the maximum ceiling of cess
leviable on motor vehicles falling under headings 8702 and 8703 including SUVs,
to 25% instead of present 15%," said a Finance Ministry statement on
Monday. The Total Investment & Insurance
Solutions
The
Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017,
currently specifies 15% as the maximum cess rate for motor vehicles.
"However,
the decision on when to raise the actual cess leviable on the same would be
taken by the GST Council in due course," it said. The Total Investment & Insurance Solutions
The
government said that the decision was taken because it was noticed that after
the roll-out of GST, the total tax incidence on motor vehicles had come down as
compared to pre-GST regime.The Total
Investment & Insurance Solutions
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