Goods And Service Tax - Lok Sabha passes GST (Compensation to States) Amendment Bill Wednesday Dec 27,2017

Lok Sabha passes bill for GST cess hike on luxury cars to 25%

The Lok Sabha on Wednesday Dec 27,2017 approved a bill to raise the maximum cess levied on luxury cars from 15% to 25%, a move aimed at enhancing central funds to compensate states for revenue loss due to the implementation of the goods and services tax (GST).

Amid din, the Lower House passed the GST (Compensation to States) Amendment Bill, 2017, that seeks to replace the ordinance issued in September following the GST Council’s recommendation at its 5 August meeting to increase the maximum rate at which compensation cess could be collected on certain automobiles.

The ordinance had provided for a hike in upper limit of cess on mid-size, hybrid variants and luxury cars to 25%.