GST debate: Cess on sin, luxury goods won't be inflationary, says Jaitley

If luxury cars have 40% indirect tax incidence, a cess of 12% would be imposed over peak rate of 28%

Finance minister Arun Jaitley on Wednesday defended a decision by the GST (goods and services tax) Council to impose a cess on sin and luxury goods over the peak rate of 28 per cent instead of a higher tax to compensate states for the revenue loss in the first five years of the rollout of the new indirect tax system. 

Initiating a debate on four GST Bills — Central GST, Union Territory GST, Integrated GST and Compensation — in the Lok Sabha, Jaitley also cautioned the house that there should not be many changes in the Bills since the new