The Union Cabinet on Wednesday approved promulgation of an ordinance to suitably amend the Goods and Services Tax (Compensation to States) Act, 2017.
The approval will allow increasing the maximum rate at which the Compensation Cess can be levied from 15% to 25%.
The increased cess would be levied on: Motor vehicles for transport of not more than thirteen people, including the driver falling under sub-headings 8702 10, 8702 20, 8702 30 or 8702 90 and Motor vehicles falling under headings 8703.
The GST Council in its meeting held in August considered the fact after introduction of GST, the total tax on motor vehicles (GST + Compensation Cess) has come down vis-a-vis pre-GST total tax and recommended the increase as above.
The issue regarding the increase in effective rate of Compensation Cess on motor vehicles will be examined by the GST Council in due course.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app