3Novices : Maharashtra, Tamil Nadu raise taxes outside GST, Centre says they can

Two state governments, Maharashtra and Tamil Nadu, have started imposing taxes outside the national goods and services tax (GST), something the Centre says they can do.The Centre says states may impose mandi (wholesale markets) tax and vehicle registration fee, beside raising entertainment tax beyond the GST rate.On Tuesday, the Maharashtra cabinet decided to raise the one-time registration fee on private two-wheel and four-wheel vehicles by two percentage points, for new ones registered in the state. This is to compensate for a combined revenue loss of Rs 600-700 crore annually that it will lose on local body taxes and octroi after GST implementation. The increase is across vehicle categories. It has, however, capped the tax for imported cars at Rs 20 lakh, as against the earlier charge of 20 per cent of the total car cost.A report by news agency PTI stated the tax on two-wheelers and three-wheelers had been raised from the existing 8-10 per cent to 10-12 per cent; for petrol-driven . 3Novices


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