Nifty99000 100%

Sensex99000 100%

Article rating: 4.3
Article rating: No rating
Article rating: 2.0
Article rating: 1.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
RSS

News

SUVs may soon cost more as GST Council approves raising cap on cess

Author: IANS/Monday, August 7, 2017/Categories: TRACKING THE GST

SUVs may soon cost more as GST Council approves raising cap on cess

New Delhi, Aug 7 - Sports utility vehicles (SUVs), racing cars, station wagons and 10-seater cars, which includes some high-end cars and also cars used for rentals, may soon become more expensive as the GST Council has asked the government to raise the cess cap to 25% from the current 15%, an official statement said.

After the cap on cess is raised, the total tax under Goods and Services Tax (GST) on such motor vehicles may go up to 53% from the current 43% as these have been placed under the highest tax slab of 28%.

The decision was taken at the Council's meeting on August 5. Though the Centre has been advised to increase the ceiling on cess, the decision on when to bring it into effect is still pending.

"The GST Council considered the issue of cess leviable on motor vehicles in its 20th meeting held on August 5 and recommended that central government may move legislative amendments required for increase the maximum ceiling of cess leviable on motor vehicles falling under headings 8702 and 8703 including SUVs, to 25% instead of present 15%," said a Finance Ministry statement on August 7.

The Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017, currently specifies 15% as the maximum cess rate for motor vehicles.

"However, the decision on when to raise the actual cess leviable on the same would be taken by the GST Council in due course," it said.

The government said that the decision was taken because it was noticed that after the roll-out of GST, the total tax incidence on motor vehicles had come down as compared to pre-GST regime.

Print Rate this article:
No rating

Number of views (236)/Comments (0)

S Vijaykrishnan
S Vijaykrishnan

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free