Auto sector's rate-cut hopes fade as GST cess collection declines

Cess collection under the goods and services tax (GST) — to compensate the states for their revenue loss in the two-year-old indirect tax regime — has fallen short of requirements in the first five months of the fiscal year, dimming rate-cut hopes for the auto sector in the upcoming GST Council meeting on Friday. Some states have asked for rate cuts for five-star hotels. Industry, too, has requested cuts for biscuits and cement. “More than rate reductions, discussions in the meeting are going to hover around the bleak revenue position. Cess collection falling short of r.....

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