GST on luxury cars and SUVs to increase

GST on luxury cars and SUVs to increase”

The highest pre-GST tax incidence on motor vehicles worked out to about 52-54.72 per cent, to which 2.5 per cent was added on account of Central Sales Tax, octroi etc. The additional one percent tax that was levied by the government on cars that cost more than Rs 10 lakh earlier in the year also drove prices up for buyers while later in the year, demonitisation saw a sharp decline in November and December sales figures.

President Ram Nath Kovind has promulgated an ordinance enabling an increase in the goods and services tax (GST) cess on motor vehicles, including medium-sized cars, large cars and sports utility vehicles (SUVs), from 15% to 25%.

The Union cabinet chaired by Prime Minister Narendra Modi had on 30 August approved the proposal for an Ordinance. With this amendment, taxation on luxury, SUV and other vehicles would be brought at par with that prevailing pre-GST rollout. The GST Council has chose to increase the cess on luxury cars and SUVs from 15per cent to 25 per cent. The GST council which was mulling over raising cess finally took the decision to increase it to 25 per cent.Since the implementation of GST, all the indirect taxes have been replaced by GST.

The issue regarding the increase in effective rate of Compensation Cess on motor vehicles will be examined by the GST Council in due course. This cess has been hiked to up to 25 per cent now.

The ordinance notified on Sunday in the official gazette said the change is applicable on all motor vehicles with a capacity of up to 13 persons as well as on all cars where the cess is 15 per cent at present.

Against this, post-GST the total tax incidence came to 43 per cent. On top of this, a cess of 1 to 15 per cent is levied for the creation of the state compensation corpus.

The cess collected from cars, coal and tobacco will be used to compensate the revenue loss of states by implementing GST.

Like this


14 February 2018
Science contest Star Track, initiated by Max Polyakov, reveals new space genius
The Star Track competition is a brainchild of the Oles Honchar Dnipro National University and Noosphere Engineering School . Examples of similar projects include ARLISS, NASA Student Launch from the USA, as well as the European CanSat Competition.

06 September 2017
Deutsche Bank AG Reaffirms "Buy" Rating for Tenet Healthcare Corporation (THC)
Riverhead Capital Management LLC grew its position in shares of Tenet Healthcare Corporation by 67.3% in the second quarter. It increased, as 53 investors sold THC shares while 70 reduced holdings. 44 funds opened positions while 74 raised stakes.

06 September 2017
First evidence of water found on TRAPPIST-1 planets, says new research
Because hydrogen gas is so light, it can escape the atmosphere of the exoplanets and be detected by Hubble, suggesting the possible presence of atmospheric water vapour.

06 September 2017
Ribbon-cutting ceremony to be held at Little Caesars Arena
Sunday: Hockeytown 5K: The second annual run will wind through Detroit and end on Woodward Avenue outside the arena. Saturday: Free public tours of the arena's Via concourse and a view of the arena bowl.

06 September 2017
Drink-drive Sky Sports host Kirsty Gallacher handed ban
The Sky Sports presenter was charged with one count of driving a motor vehicle while her alcohol level was above the legal limit. Gallacher was earlier pictured looking sad as she arrived at court dressed all in black. "She does not have a drink problem".

06 September 2017
Kangana's gone mad, will take legal action, fumes Aditya Pancholi
I don't know about other people, but as far as my story goes and what she has spoken about me, she has said all lies. The man also confessed of being deeply hurt by Kangana's words and advised her to be more humble in her approach. .

06 September 2017
Odisha gears up for Men's Hockey World Cup 2018
Around 22 matches will be played during the tournament. "Earlier hockey matches have been conducted in Odisha successfully". The Hockey India seems quite satisfied with progress and steps taken by the State government to host the big events.

06 September 2017
Vikings claim Bishop Carroll grad Blake Bell off waivers
San Francisco last month, was sent to Minnesota via the waiver system, according to the National Football League transaction wire. The Vikings waived him with an injury designation, so if he clears waivers Minnesota can place him on injured reserve.

06 September 2017
First Lady and Trump at church on National Day of Prayer
The proclamation says the entire nation grieves with Texas and Louisiana and we pray for healing and comfort for those in need. The option of a military response was also suggested in an early morning tweet from the president.

06 September 2017
Public sector pay cap 'to be lifted next year'
Fellow union Unite echoed the college's concerns, describing the reported proposals as a "drop in the ocean". Mrs May told her there was "no magic money tree".