The higher cess has also increased the burden for leased vehicles, which attract a total levy of anywhere between 29% (for small cars) and 50% (the rate applicable for GST). While the burden will be passed on to those who have leased vehicles, several individauls have already opted for foreclosure. Sources said that the leasing companies had suggested two options - either provide input tax credit for the excise paid or allow for a reduced levy of 18%. The GST Council will decide the best course of action.Sources also said duty on food preparation distributed in containers to economically weaker sections under state or central government schemes are expected to be reduced from 18% to 5%. There is also demand from some states to lower the rate for AC restaurants.

Source: Economic Times October 06, 2017 00:00 UTC