GST peak rates revised: You may now pay up to 43% tax for aerated drinks, luxury good 

The 15 per cent cess cap would apply on luxury cars and aerated drinks. On pan masala, the cess has been capped at 135 per cent ad valorem.GST peak rates revised: You may now pay up to 43% tax for aerated drinks, luxury goods" A maximum of 15 per cent cess on top of the peak GST rate of 28 per cent will be levied on luxury goods and aerated drinks after the GST Council today approved a cap on cess along with supporting legislations. The actual cess on demerit goods, which will help create a corpus for compensating states for any loss of revenue from GST implementation in the first five years, may be lower than the cap as the Council has kept a "little headroom" for future exigencies, Finance Minister Arun Jaitley said.

 Citing an example, he said if a luxury car at present commands a total tax of 40 percent, under the new indirect tax regime, a GST of 28 percent plus 12 percent cess would be levied to keep the tax incidence at the same level. The 15 per cent cess cap would apply on luxury cars and aerated drinks. On pan masala, the cess has been capped at 135 per cent ad valorem. Tobacco cess will be capped at a mixture of Rs 4,170 per 1,000 sticks or ad valorem of 290 per cent. Cess on coal would be at Rs 400 per ton. No decision has been taken to levy cess on bidis as of now, an official said. The panel today also cleared the State-GST (S-GST) and Union Territory GST (UT-GST) legislations, Jaitley said while briefing reporters on the deliberations at the 12th meeting of the all-powerful GST Council.

 Read more for HNI Stock Tips-http://bit.ly/ace_services