India Mulls Folding Cess on Luxury Goods Into GST, Mint Reports

The compensation cess levied on luxury goods is likely to be integrated into GST levied on these items, Mint newspaper reported, citing two unidentified people familiar with the matter.

• Government is willing to integrate cess on items like cars, tobacco and aerated drinks
• Cess is levied on top of GST and is set for an expiry in March 2026
  • It was introduced to compensate states for potential revenue loss due to the transition to new tax regime
• Cess collection is expected to fetch 1.67 trillion rupees this year
• The administration is also planning to eliminate the 12% GST slab and ...