The Goods and Services Tax Council on Saturday decided to levy additional cess on mid-sized cars, luxury cars and Sport Utility Vehicles, PTI reported. An additional two percent cess will be levied on mid-sized cars, five percent on luxury cars and seven percent on SUVs, Finance Minister Arun Jaitley said after the GST Council met in New Delhi.

However, there will be no additional cess on small and hybrid cars. “Small petrol and diesel cars enjoyed a tax advantage of three per cent post GST,” Jaitley said. “But the status quo will be maintained on small petrol diesel cars, so customers can enjoy the benefit of these cars getting cheaper.”

Jaitley said the GST Council had decided to increase the cess on mid-segment and high-end cars because the tax rate on them had fallen from 48% to 43% after GST. The date of implementation of the revised rates is yet to be notified.

The finance minister also said that the GST rate on 30 items had been lowered. The GST has been lowered on dried tamarind, custard power, oil cakes, dhoop batti and other similar items, idli batter, plastic raincoats, rubber bands, rice rubber rolls for paddy de-husking, computer monitors, kitchen gas lighters and brooms and brushes, among other things.