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Cess Increase StoryWEB
The Indian Cabinet has approved the proposed hike in Cess on luxury cars and SUVs

Today, the Indian cabinet has stamped its approval on the proposal to increase the Cess on luxury cars and SUVs from 15 percent to 25 percent. This increase on Cess will result in luxury cars and SUVs getting even more expensive. The earlier ruling saw this segment of automobiles being charged 28 percent GST with an additional 15 percent Cess, which took the total tax rate to 43 percent. However, the new ruling has elevated the rate from 43 percent to 53 percent.

Earlier, carmakers had appreciated the GST + Cess rate as it was lower than what the previous tax structure demanded. However, the new ruling has taken the tax rate more or less back to pre-GST times.

We are still waiting to hear from luxury car makers on this new ruling which will affect the business quite a bit.


About the author: Ravi Chandnani


Senior Correspondent
Car India Magazine,
Automotive Division,
Next Gen Publishing Ltd.


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