GST revs up to 40% for luxury cars and SUVs — but your wallet may still thank you

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One of the most significant revisions relates to luxury cars and SUVs. Until now, these vehicles attracted 28% GST, but were also burdened with a compensation cess of 17–22%, pushing the total tax incidence to 45–50%. Under the new system, they will now fall into the 40% GST slab, but without cess.