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Green light for 25% GST cess makes automakers see red

This cess would be over and above the peak GST rate of 28 per cent on these vehicles

GST cess on cars
A decision to raise the cess was taken after the Council found taxes on these cars were lower under the GST regime

Bigger sedans and sports utility vehicles (SUVs) will cost more now, as the Cabinet on Wednesday cleared an ordinance to increase the cess ceiling on these vehicles to 25 per cent from 15 per cent. This cess would be over and above the peak goods and services tax (GST) rate of 28 per cent on these vehicles. Hybrid vehicles will continue to attract a cess of 15 per cent.  Announcing this decision, Finance Minister Arun Jaitley said the objective of any taxation policy cannot be that luxury goods become cheaper and essential items become costlier. “If at all relief is to ...