Cabinet may consider GST cess hike on cars this week
27 Aug 2017 9:18 PM IST
New Delhi: The Cabinet may this week consider issuing an ordinance to increase the cess on mid- size, large cars and SUVs to 25 per cent from 15 per cent under the GST regime at present.
The GST Council, the apex tax rate setting body under the Goods and Services Tax regime, had on August 5 approved raising cess on SUVs, mid-sized, large and luxury cars that had become cheaper post GST rollout on July 1.
But, for raising the cess requires an amendment to the Schedule of section 8 of the GST (Compensation to a State) Act, 2017.
"The Cabinet will in next few days consider amending that through the issue of an ordinance," an official said.
Views of ministries like road, transport and highways and heavy industries will be taken before hiking of the cess, the official added. An ordinance is issued when Parliament is not in session to approve a legislation or change in a legislation. The ordinance has to be replaced with a proper legislation with the approval of Parliament within six months of its issuance.Once the law is amended, the GST Council will decide on the date when the increased cess will be applicable, the official said.
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