Amidst the ruckus, Lok Sabha on Wednesday has passed the Goods and Services Tax (Compensation to States) Amendment Bill 2017.
Last week, the Union Finance Minister Arun Jaitley had introduced the bill in the lower House
The bill results increase the maximum rate at which the Cess can be levied from 15 to 25 percent on motor vehicles for transport of not more than 13 persons, including the driver [falling under sub-headings 870210, 8702 20, 8702 30 or 8702 90]; and motor vehicles falling under headings 8703.
The Bill amends the Goods and Services Tax (Compensation to States) Act, 2017 and replaces an Ordinance promulgated in September 2017.
The Act allows the central government to notify the rate of the Goods and Services Tax (GST) Cess on items such as pan masala, coal, aerated drinks, and tobacco, subject to certain caps.
The amount received by levying the GST Compensation Cess is used to compensate states for any loss in revenue following the implementation of GST.Subscribe Taxscan AdFree to view the Judgment