The GST Council approved the amendements required to increase the cess on cars on 5th August under the GST regime. 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 Cabinet will in next few days consider amending that through the issue of an ordinance," an official said. The official said after the introduction of GST, the total tax incidence on motor vehicles (GST plus compensation cess) has come down when compared with the total tax incidence in the pre-GST regime. Presently, large motor vehicles, SUVs, mid-segment cars, large cars, hybrid cars and hybrid motor vehicles attract a cess of 15 % on top of 28 % GST.

Source: dna August 27, 2017 13:47 UTC