New Delhi: Sport Utility Vechicles, mid-sized, large, and luxury cars will cost more as the GST (Goods and Services Tax) Council has approved a proposal to hike cess on them to 25% from 15%. Under the new GST regime, these cars attract the top tax rate of 28%. On top of this, a cess of 1-15% is levied on them to create a corpus to compensate the States for loss of revenue from GST implementation.
The Finance Ministry, in a statement, said that after the introduction of the GST, the total tax on motor vehicles (GST plus compensation cess) has come down vis-a-vis the total incidence in the pre-GST regime.