Top-end luxury cars including sports utility vehicles (SUVs) may cost more with Centre and states seeking to increase cess on these vehicles to accurate so-called “anomaly” that crept in when goods and services tax (GST) rates were decided.
Reportedly, the plan is to increase the cess from 15% to 25%. Currently, the levy on these vehicles, including the 28% GST, increases up to to 43%. This will rise to 53% once the law is corrected.
There are also strategies to cut rates on a number of products ranging from custard powder and idli and dosa batter to idols and prayer beads. UP has been leading the responsibility for lesser levies on many products, reports Times of India. There are numerous other items on which concerned officers are reviewing the rates.
It is likely to be certain at the GST Council meet in Hyderabad next month. “Like cigarettes, an error crept in while deciding the rates for high-end cars, the change would require legislative amendments with the timing to be decided by the Centre,” TOI quoted a source saying.
