To repay the liquidity support given to state governments during the Covid-19 period, India’s federal government has extended the timeline for GST compensation cess levy by four years until March 31, 2026. The move will impact sectors like automotive and tobacco through higher tax rates. The cess is levied on notified luxury goods falling in the 28 percent GST slab. While it will be levied on imported goods, exporters will be eligible to claim input tax credit refund relating to goods exported.
Source india-briefing
Latest Posts in "India"
- GST Cut on Insurance May Not Lower Premiums; Potential 12-18% Increase Expected
- India’s GST Council Endorses Two-Tier Tax Structure for 2025
- GST Reduction on Fruit Drinks Excludes Colas; Prices Remain Unchanged for Carbonated Beverages
- Supreme Court Stays Retrospective GST Penalty, Examines Applicability to Non-Taxable Persons
- India Unveils Simplified GST Rate Structure
