ALSO READGovt. looks for timely implementation as GST Council clears State, Union Territory GST GST Council may take up certain tax issues at Aug meet Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates Council may revise some GST rates in June 11 meeting Reduction/exemption of tax rates under GST for small businesses
The GST 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 GST Council in due course.
It was noted that after introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis the total tax incidence in pre-GST regime. The Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017, specifies the maximum rate at which Goods and Service Tax Compensation Cess may be collected. In respect of motor vehicles, the maximum rate at which Goods and Service Tax Compensation Cess may be collected is 15%.
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