SUVs and luxury cars will be expensive due to increase in GST

       SUVs and luxury cars will be expensive due to increase in GST cess - 10 special points

SUVs and luxury cars will be expensive due to increase in GST cess - 10 special points
                     SUVs and luxury cars will be expensive due to increase in GST cess - 10 special points

Car

  SUVs, medium sized and big and luxury cars will now be expensive. The GST Council has approved the proposal to increase the rate of cess from existing 15 percent to 25 percent. It is worth mentioning that after the implementation of the goods and services tax (GST), their prices were reduced.

Cars under GST have been rated the highest rate of 28 percent in the tax category. A cess of 1-15 percent has been imposed on goods and services in this class.

This has been done to compensate the losses in revenue to the states in GST through income received from them.

Now the rate of cess on SUVs and big cars has been increased. In a statement, the Finance Ministry said that after GST, the total tax on cars (including GST and Cess) had decreased compared to the earlier provision of GST.

The GST Council held this issue in its 20th meeting on August 5. The Council recommended to the Central Government that it could propose legislative amendment to increase the maximum cess from existing 15% to 25% on motor vehicles coming under the title of 8702 and 8703.

When the increased Cess will be effective, it will decide GST Council later.

For the increase in Cess, amendments will be required in Section 8 of the GST (Reasons for Revenue Damage to the States) Act-2012.

Motor vehicles coming under the 8702 and 8703 titles come with medium-range, big cars, SUVs and more than 10, but vehicles capable of sitting less than 13 people.

It also includes hybrid vehicles with engines of more than 1500 cc and medium-sized hybrid cars of less than 1500 cc engines.

The GST Fitement Committee found in its July 25 meeting that the total tax on these cars has decreased compared to the previous arrangement of GST. This committee is responsible for assessing tax rates only.

Prior to GST, these cars were taxed 52 percent to 54.72 percent, of which 2.5 percent were Central Sales Tax (CST). After GST, the total tax burden on these was 43%.


Home    News   Business    Career   Mobile news   Jio News    Lifestyle  Car

0/Post a Comment/Comments

Previous Post Next Post