- GST Council meeting on September 3-4 may consider raising the maximum slab rate beyond 40 percent
- Proposal aims to maintain tax incidence on luxury items like SUVs and sin goods
- Current SUV tax rate includes 28 percent slab and 15-22 percent compensation cess
- Legal maximum slab rate is 40 percent under current law
- Some states want law amendment to allow rates over 40 percent for specific goods
- Cess cannot be imposed under GST as it is non-sharable
- Flexibility beyond 40 percent could help maintain GST revenue
- Tax incidence on tobacco products will be maintained through Central Excise duty
- Parliament may amend GST law for higher special category if needed
- Statutory amendment to Section 9(1) of CGST Act would be necessary for higher rates
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
