Auto cess may come up for review at GST Council meet today

The GST Council will review the tax rates of over two dozen items on Saturday, including the cess on large and luxury cars and SUVs.

The Council, which meets in Hyderabad, is likely to decide the exact quantum of increase in the compensation cess of these cars.

While the Centre had last week promulgated an Ordinance to raise the cess on automobiles to 25 per cent from the earlier 15 per cent, government officials indicated that the actual hike would be lower, in order to maintain duty parity in the pre- and post-GST regime.

At its last meeting, in August, the Council had recommended hiking the compensation cess and capping it at 25 per cent.

On Saturday, the Council may also review the tax rates on items such as agarbattis, clay idols, dosa and idli batter.

The Fitment Committee of officials had been tasked with examining proposals on the rates of over 150 items, ranging from food items to granite slabs and scientific equipment.

The Council is also expected to review the progress on the E-Way Bill, which is likely to be launched from October.

The Central Board of Excise and Customs has already notified rules that require pre-registration of goods with the GST Network for transportation of goods worth over ₹50,000 over a distance exceeding 10 km. The Centre has also exempted 154 items such as fruits and vegetables, and items of common use from the clause.

The Council will also review tax collections under GST in the first month as well as technical issues.