TIL Desk/Business/New Delhi/ The increased Goods and Services (GST) cess on mid- sized, luxury and SUV cars will come into effect on Monday. The GST Council on September 9 decided to hike cess on mid-sized cars by 2 per cent, taking the effective GST rate to 45 per cent.
Also, cess on large cars has been hiked by 5 per cent, taking the total GST incidence to 48 per cent while that of SUVs by 7 per cent to 50 per cent.
“Notification regarding increase in the effective rates of the Compensation Cess on specified motor vehicles will be issued on September 11, 2017, effective from 00 hours the same day,” the Central Board of Excise and Customs (CBEC) tweeted.
After the GST Council meet on Saturday, Finance Minister Arun Jaitley had said that in large vehicles where affordability of consumers is high, the cess has been increased.
“The pre-GST rate has not been restored… Even though we had a headspace of hiking cess by 10 per cent, it has been hiked by up to 7 per cent,” Jaitley had said. Cess on small petrol and diesel cars, hybrid cars and those carrying up to 13 passengers has not been hiked.
