Govt notifies hike in GST cess on mid, large cars to 25%

The government has notified hike in GST cess on a range of cars from mid-size to hybrid variant to luxury ones to a maximum of 25 per cent, from earlier 15 per cent.

Following assent by President Ram Nath Kovind, the government has notified the Goods and Services Tax (Compensation to States) Amendment Ordinance, 2017.

The Ordinance was last week approved by the Union Cabinet, headed by Prime Minister Narendra Modi, and was sent to the President for his approval.

It has come into force with effect from September 2 — the date of official gazette notification. With this amendment, taxation on luxury, SUV and other vehicles would be brought at par with that prevailing pre-GST rollout.

However, the quantum of cess hike in each variety of car would be decided by the GST Council, chaired by Union Finance Minister Arun Jaitley and his state counterparts, in its next meeting on September 9.


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