The Tamil Nadu Chamber of Commerce and Industry has condemned the proposed levy of cess on GST, terming it unethical and as an attempt to complicate the simple GST system.
Demanding the withdrawal of the proposed levy, Chamber President N Jegatheesan said the cess on ultra luxury goods like big car or “sin goods” such as tobacco and pan masala to compensate the states for any revenue loss over a period of five years on implementation of GST “will only complicate the simple GST taxation system.”
The Chamberhas suggested that the Centre could, instead of levying a blanket cess on all demerit goods, opt for a slightly higher rate of tax on ultra-luxury products and such goods to mop up funds for compensation to the States, with a commitment that it would be withdrawn “as soon as it is found that the increased rate is not necessary.”
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