The Lok Sabha has recently approved a bill to hike Goods and Services Tax (GST) Cess on luxury cars from 15% to 25%.

The Cess will be applicable along with the 28 per cent GST that is already applicable on cars that are over the 4-metre length category.

This has been done to reimburse States loss of revenue posterior to the implementation of GST.

The order that was issued by the council had multiple brackets, which resulted in Cess increasing 15% to 17% or 20% for cars and to 22% for SUVs, the new GST Cess rates will now be even higher at 25%.

Source: NDTV