Infrastructure Cess to Be Eventually Included in GST

The government will subsume all additional levies such as Krishi Kalyan and Infrastructure cess in the Goods and Services Tax (GST), within an year of its implementation.

By car&bike Team

1 mins read

Published on March 5, 2016

Highlights

The recently announced infrastructure cess announced under the purview of the union budget 2016 will eventually be included in Goods and Services Tax (GST). The government will subsume all additional levies such as Krishi Kalyan and Infrastructure cess in the Goods and Services Tax (GST), within an year of its implementation. Ram Tirath Member (Budget), Central Board of Excise and Customs, said, "Cesses have been imposed with specific purposes. The government needs revenue. Once the Goods and Services Tax comes to play, hopefully by April 2017, all these taxes will be subsumed." While the Krishi Kalyan Cess aims to aid farmers and agriculture, the proposed infrastructure cess was announced as a measure to help the government deal with the troubling condition of pollution and traffic in the country. Under the infra cess, small petrol, LPG, and CNG cars will pay 1 per cent infrastructure cess, diesel cars not exceeding 4m in length and with engine capacity of up to 1500cc will pay 2.5 per cent. Furthermore, 4 per cent will be imposed vehicles with higher engine capacity and SUVs. As a result, several manufacturers including Maruti Suzuki, Hyundai, Honda, Tata Motors, and Mercedes-Benz have already announced a price hike across their respective range of vehicles in India. Also Read: Budget 2016: Woes For Passenger Vehicle Industry

Last Updated on March 5, 2016

# Union Budget 2016 # Goods and Services Tax # GST # infrastructure cess # Auto Industry

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