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GST Council Recommends Increase in Maximum Ceiling of Cess Leviable on Motor Vehicles Falling Under Headings 8702 and 8703 to 25%

Capital Market 

The Council considered the issue of cess leviable on motor vehicles in and recommended that Central Government may move legislative amendments required for increasing the maximum ceiling of cess leviable on motor vehicles falling under headings 8702 and 8703 including SUVs, to 25% instead of present 15% . However, the decision on when to raise the actual cess leviable on the same will be taken by the Council in due course.

It was noted that after introduction of GST, the total incidence on motor vehicles [+ Compensation Cess] has come down vis-a-vis the total incidence in pre-regime. The Schedule to the Goods and Service (GST) (Compensation to State) Act 2017, specifies the maximum rate at which Goods and Service Compensation Cess may be collected. In respect of motor vehicles, the maximum rate at which Goods and Service Compensation Cess may be collected is 15%.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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