Why GST Councils hike in cess for mid, large cars, SUVs comes as relief to automobile industry
The GST Council took the decision to increase the cess on various segment of cars individually, instead of having a common tax on all the cars of one size.
Key highlights:
- Hike in GST cess on mid-size cars will be 2%
- GST cess on large cars increased by 5% to now 20%
- SUVs to incur hike of 7% in cess to now 22%
The GST Council on Saturday took the decision to increase the goods and service tax (GST) cess on mid-size, large cars and SUVs. They decided on an additional levy of 2 to 7% on them, but exempted small and hybrid cars from any hike.
The GST Council's decision to increase the GST cess brings the taxes to the pre-GST levels, said Finance Minister Arun Jaitley after an 8-hour long meeting with the council in Hyderabad.
However, the GST Council's revision in the GST cess on mid-size, large cars and SUVs was made to still keep it a little lower than the pre-GST levels.
Cess on luxury cars hiked;30 daily-use items cheaper under GST
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