GST cess News

Pan masala, containing tobacco gutkha, now has a cess rate of 0.61 times the RSP, while the rate for smoking mixtures for pipes and cigarettes is 0.69 times.

The COVID-19 pandemic has sharply reduced the revenue realisation of both the Centre and the states. The GST compensation needs of states have enlarged substantially beyond what is expected to be collected through compensation cess. The Finance Ministry has ruled out voting on the borrowing options given by the Centre to the states in lieu of their GST compensation.

Viswanathan said electric vehicle technology is very simple and so, it's not very difficult to introduce such models, and agreed with the view that TKM can launch EVs at short notice.

The ordinance raises the ceiling on GST cess for luxury vehicles and SUVs from the current 15 percent to 25 percent.

The Cabinet on Wednesday approved promulgation of an ordinance to amend the GST compensation law to pave the way for increasing cess on mid and large cars to 25 per cent, from 15 per cent.

After the cap on cess is raised, the total tax under Goods and Services Tax (GST) on such vehicles will go up to 53 percent from the current 43 percent as these have been placed under the highest tax slab of 28 percent.

The Centre expects to mop up as much as Rs 55,000 crore by levy of cess, including a big chunk from demerit and luxury goods, during the 9-month period of the current fiscal after the Goods and Services Tax (GST) is rolled out from July 1.