Stage set for July 1 rollout: GST Council caps cess on luxury goods at 15%

All five Bills cleared, paving way for new indirect tax regime roll-out from July 1

The Goods and Services Tax (GST) Council on Thursday cleared a proposal to cap the cess on luxury cars and aerated drinks at 15 per cent over the peak rate of 28 per cent. The ceiling for the cess on “sin” goods would be much higher.

An official said for paan masala, the cap would be 135 per cent. On tobacco and cigarettes, the cap would be 290 per cent, or Rs 4,170 per 1,000 cigarette sticks. A call is yet to be taken on whether or not a cess would be imposed on bidis. The cess on