The Goods and Services Tax Council has recommended increasing the maximum cess on motor vehicles from 15% to 25%, the Finance Ministry said on Monday. It has also recommended that the government move legislative amendments to raise this levy, adding that they will decide “in due course” on when to raise the tax.
The ministry further said that in a meeting on Saturday, the GST Council had said that the total tax incidence on motor vehicles had reduced after the new regime came into effect on July 1.
In addition to 28% GST, a cess of 15% was levied on large motor vehicles, SUVs, mid-segment cars, large cars, hybrid cars and hybrid motor vehicles.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!