GST Council recommends raising maximum cess on motor vehicles from 15% to 25%
The Finance Ministry said the panel also suggested bringing in legislative amendments to increase this levy.
The Goods and Services Tax Council has recommended increasing the maximum cess on motor vehicles from 15% to 25%, the Finance Ministry said on Monday. It has also recommended that the government move legislative amendments to raise this levy, adding that they will decide “in due course” on when to raise the tax.
The ministry further said that in a meeting on Saturday, the GST Council had said that the total tax incidence on motor vehicles had reduced after the new regime came into effect on July 1.
It recommended that Central Govt may move legislative amendments to increase max ceiling of cess on motor vehicles to 25% from present 15%.
— Ministry of Finance (@FinMinIndia) August 7, 2017
GST Council Recommends Increase in Max Ceiling of Cess on Motorvehicle (Under Headings 8702 & 8703) to 25% from 15% https://t.co/aBi7rPMTlD
— Ministry of Finance (@FinMinIndia) August 7, 2017
In addition to 28% GST, a cess of 15% was levied on large motor vehicles, SUVs, mid-segment cars, large cars, hybrid cars and hybrid motor vehicles.
