New Delhi, August 7: The Goods and Services Tax (GST) Council on Monday approved the Center to raise the cess on SUVs and extravagance autos from 15% to up to 25%. The Finance Ministry in its announcement stated, "GST Council in its twentieth Meeting hung on August 5, 2017, considered the issue that aggregate expense rate on engine vehicles after GST has descended". "It prescribed that Central Govt may move authoritative alterations to build the maximum roof of cess on engine vehicles to 25% from exhibit 15%," the Finance Ministry additionally tweeted. As per the new improvement, SUVs, medium sized, expansive and extravagance autos that had turned out to be less expensive after GST rollout on July 1 will cost more as a proposition to climb cess on them has been endorsed. The cess on SUVs and extravagance autos is as of now 15 for each penny and might be climbed to up to 25%.
Costs of most SUVs were cut between Rs 1.1 lakh and Rs 3 lakh following usage of GST, which subsumed over twelve focal and state demands like extract obligation, benefit expense and VAT, from July 1. The fund service, in an announcement, said that after the presentation of GST, the aggregate assessment on engine vehicles (GST in addition to remuneration cess) has descended opposite the aggregate frequency in the pre-GST administration. The GST Council had%, 18% and 28% and autos pulled in the best duty rate of 28 for every penny. Also, a cess of 1-15 for every penny is demanded on them to make a corpus to repay states for loss of income from GST execution. "The GST Council considered this issue in its twentieth meeting hung on August 5 and prescribed that the focal government may move administrative revisions required for expanding the most extreme roof of cess leviable on engine vehicles falling under headings 8702 and 8703 to 25 for every penny rather than the present 15 for each penny," the announcement read.
