Cess cap for motor vehicles hiked to 25%, not actual levy, says Finance Ministry

GST Council recommends increase in maximum ceiling of Cess leviable on motor vehicles falling under headings 8702 and 8703 including SUVs, from 15% to 25%; However, decision on when to raise the actual cess leviable on the same in terms of the Goods and Service Tax (GST) (Compensation to State) Act 2017 will be taken by GST Council in due course; Notes that after introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis t...