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Coimbatore
Merge cess with GST
August 31, 2017
Delhi: This refers to the Union Cabinet giving nod to increase of cess from earlier 15 per cent to 25 over the highest GST slab of 28 per cent for luxury cars and SUVs. These items witnessed a price fall after implementation of GST. The need to increase cess just after two months of GST exposes lack of wisdom in deciding GST rate structure.
Ideally, there should be an ideal rate structure of 10, 30, 50, 100 per cent and thereafter multiples of 100 without having any provision of cess as even petroleum products come under GST. Then most commodities and services could be easily covered under the 10 per cent rate structure giving much more revenue.
Differential GST rate for cars and SUVs should be on basis of ex-factory price rather than length or engine-capacity.
