Union Cabinet gives nod to Ordinance hiking Cess on luxury cars, SUVs

Union Cabinet, chaired by PM Narendra Modi, approves proposal of Finance Ministry to promulgate an ordinance to amend the Goods and Services Tax (Compensation to States) Act, 2017; Such approval allows increase in maximum rate at which Compensation Cess can be levied from 15% to 25% on motor vehicles falling under sub-headings 870210, 870220, 870230 or 870290 and 8703 i.e. SUVs, mid-size, large and luxury cars; Issue regarding increase in effective rate of Compensation Cess w...