HYDERABAD: The Goods and Services Tax (GST) Council is likely to keep the overall tax incidence on motor vehicles below 50 per cent at its meeting in Hyderabad on Saturday, a move that could rein in price increases. Imposing the maximum cess could lead to an increase in prices of about 7 per cent, experts said. Most car makers had slashed prices after the rollout of GST, which replaced multiple state and central taxes, on July 1. Industry has represented to the council that consumers should either be given credit for taxes paid in the previous tax regime or the rate be reduced for this sector. The issue was scheduled to be taken up at the last council meeting, but could not be discussed due to lack of time.

Source: Economic Times September 08, 2017 11:09 UTC