Sir, As per ‘Schedule’ to Compensation to States Act, 2017 the maximum Cess Rate for HSN Code 8703 specified is 15% ad valorem but, as per Compensation Cess (Rate) Notification 1/2017, the Cess rate specified under SI. No. 52, 52A and 52B against HSN 8703 is 17%, 20% and 22% respectively.
So, my question is, if there is a limit of 15% as per Act, then how can the tax rate notification prescribes rates more than that?
Frah Saeed Answered question June 9, 2020
As per Schedule to GST (Compensation) Act, 2017 the maximum rate of cess applicable for Motor Cars etc (HSN Code 8703) is 25% and not 15% as mentioned in question.
Please refer to the Schedule again.
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Frah Saeed Posted new comment June 9, 2020
You need to refer to the updated and amended Schedule as in earlier the rate was 15% which was substituted to 25% by GSt (Compensation) Cess Amendment Act, 2017..