GST: Cabinet approves promulgation of the Goods and Services Tax (Compensation to States) Ordinance, 2017
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to the proposal of the Finance Ministry to promulgate an ordinance to suitably amend the Goods and Services Tax (Compensation to States) Act, 2017.
The approval would allow to increase the maximum rate at which the Compensation Cess can be levied from 15% to 25% on:
a) motor vehicles for transport of not more than thirteen persons, including the driver [falling under sub-headings 870210, 8702 20, 8702 30 or 8702 90]; and
b) motor vehicles falling under headings 8703.
The GST Council, in its meeting held in August 2017, taking into consideration the fact that post introduction of GST, the total incidence on motor vehicles [GST+ Compensation Cess] has come down vis-a-vis pre-GST total tax, incidence, and had recommended increase in the maximum rate at which Compensation Cess can be levied on motor vehicles falling under headings 8702 and 8703 from 15% to 25%.
The issue regarding the increase in effective rate of Compensation Cess on motor vehicles will be examined by the GST Council in due course.
Related to Your Search:
- GST Council Recommends Increase in Maximum Ceiling of Cess Leviable on Motor Vehicles Falling Under Headings 8702 and 8703 to 25% Instead of Present 15%
- Government to replace GST ordinance with bill
- Lower Tax Incidence on Entertainment Services under Goods and Services (GST) Tax
- Cabinet clears GST supplementary legislations
- The Central Government abolished various Cesses in the last three years for smooth roll-out of GST
- GST Bill likely to be tabled before Cabinet on March 22
- GST council clears state GST laws, likely to roll out by July 1
- GST: Finance Minister may hike service tax to 16-18% in Budget
- Proposed GST Tax rates would be lesser than the prevailing taxes in case of Sugar, Tea and Coffee