The Goods and Services Tax (GST) Council has recommended that the Central Government may move legislative amendments to increase max ceiling of cess on motor vehicles to 25 per cent from the current 15 per cent.This move, if implemented, will make sports utility vehicles (SUVs) and luxury cars costlier. In a series of tweets, the Finance Ministry said, “It (GST Council) recommended that Central Government may move legislative amendments to increase maximum ceiling of cess on motor vehicles to 25 per cent from present 15 per cent.”
Currently, the levy on these vehicles, including the 28 per cent GST and the 15 per cent cess, adds to 43 per cent. This could rise to 53 per cent if the law is amended. "The decision on when to raise the actual cess leviable on the motor vehicles will be taken by the GST Council in due course," the Ministry added. The GST Council in its 20th Meeting held on 5th Aug,2017 noted that total tax incidence on motor vehicles after GST has come down, the Finance Ministry said in another tweet.