If you are planning to buy an SUV or high-end car then it is time to purchase it quickly as Goods and Services Tax Council is said to have decided to raise the cess on luxury automobiles to 25 percent from 15 percent.
However, the rates may not be increased immediately as it will require an amendment to the GST compensation law.
According to government official, “The council approved an amendment to the GST law to enable an increase in the rate of levy of compensation cess,”
Cars have been placed in the highest 28 percent tax bracket under GST, which has replaced 17 state and central taxes as also 23 cesses. It should be noted that the GST Council has already set the maximum levy inclusive of cess at 40percent.