ENA Economy 2017-08-30 10:56:04 <p><strong>New Delhi, Aug 30 (KNN)</strong> The Union Cabinet has approved proposal of the Finance Ministry to promulgate an ordinance to suitably amend the Goods and Services Tax (Compensation to States) Act, 2017.</p> <p>The approval would allow increasing the maximum rate at which the Compensation Cess can be levied from 15% to 25% on motor vehicles for transport of not more than thirteen persons, including the driver [falling under sub-headings 870210, 8702 20, 8702 30 or 8702 90]; and motor vehicles falling under headings 8703.</p> <p>The GST Council, in its meeting held in August 2017, taking into consideration the fact that post introduction of GST, the total incidence on motor vehicles [GST+ Compensation Cess] has come down vis-a-vis pre-GST total tax, incidence, and had recommended increase in the maximum rate at which Compensation Cess can be levied on motor vehicles falling under headings 8702 and 8703 from 15% to 25%.</p> <p>The issue regarding the increase in effective rate of Compensation Cess on motor vehicles will be examined by the GST Council in due course.</p> 17926 http://knnindia.co.in/news/newsdetails/economy/cabinet-approves-promulgation-of-the-gst-compensation-to-states-ordinance-2017 2017-08-30 10:56:04 knnindia.co.in