Luxury cars, SUVs to get costlier as Cabinet approves ordinance to hike cess

Agencies

August 30, 2017

New Delhi, Aug 30: Almost all cars except small hatchbacks will soon cost more in India as the Union government cleared on Wednesday an ordinance to hike the cess on vehicles from 15 to 25%.

The hike will apply to mid-size cars, premium hatchbacks, SUVs and luxury cars, which became cheaper under the new Goods and Services Tax system that was implemented on July 1.

Cess is an additional levy on cars that fall in the GST’s top tax bracket of 28%. The cess earlier ranged from 1-15%, with cheaper and less polluting cars such as small hatchbacks with frugal petrol engines attracting lower levy.

The date for implementing the hike in the upper limit of the cess from 15% to 25% will be decided by the GST Council when it meets in Hyderabad on September 9, sources said.

The upper limit rate is applied to cars such as Toyota Fortuner (an SUV), sedans from BMW, Audi and Mercedes, and mid-size sedans such as the Honda City.

Cars smaller than 4 metres attract 1% cess if they have a petrol engine with a capacity of up to 1,200cc; or 3% if they run on a diesel engine smaller than 1,500cc. The cess on these vehicles will remain unchanged.

And despite the hike in cess, mid-segment cars, large cars and SUVs will still be cheaper than what they cost before GST kicked in.

The total tax rate on these cars before GST was in the bracket of 52-54.72% to which 2.5% was added on account of central sales tax, octroi etc.

Against this, after GST, the total tax incidence came down to 43%.

Consequently, prices of SUVs, for instance, fell by Rs 1-3 lakh after GST was rolled out and some luxury cars saw as much as Rs 10 lakh shaved off their tags after GST rolled out.

It was this decrease that led the GST Council to decide on August 5 that the cess needs to be hiked.

The money collected from this cess is used by the central government to compensate states for any revenue loss under GST.

For raising the cess, the government will eventually need to amend the GST (Compensation to a State) Act, 2017. For now, it will do this through an ordinance, which will need to be cleared by the President.

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From Dubai boom to Bengaluru backlash: Inside CJ Roy’s journey

News Network

January 31,2026

Bengaluru: The shooting incident involving CJ Roy, founder of the Confident Group, has once again put the spotlight on a businessman whose life has swung between flamboyant global success and persistent controversy at home.

Though Roy’s business interests extended across continents, his roots lay firmly in Karnataka. An alumnus of Christ School in Bengaluru, he later moved to Tumakuru to pursue an engineering degree. Those familiar with his early years describe him as intensely ambitious, beginning his career as a salesman at a small electronics firm dealing in computers.

Roy’s entry into large-scale real estate came through the Crystal Group, where he worked closely with Latha Namboothiri and rose from manager to director. However, the launch of the Confident Group in 2005 was clouded by industry speculation. Insiders speak of a fallout involving alleged “benami” properties and claims of deception that ultimately led to his independent venture—an episode Roy spent years trying to distance himself from, according to associates.

A tale of two cities

Roy’s professional trajectory diverged sharply across geographies.

In Dubai, he built a reputation as a bold and efficient developer, completing massive luxury residential projects in record time—some reportedly within 11 months. His rapid project delivery and lavish lifestyle in the Emirates earned him admiration and visibility in the real estate sector.

In Bengaluru, however, his image remained far more fractured. Sources say Roy stayed away from the city for several years amid disputes over unpaid dues to vendors and suppliers. Several projects were allegedly stalled, with accusations of unfulfilled commitments to cement and steel suppliers continuing to follow him.

Roy’s return to Bengaluru’s business and social circles began around 2018, marked by a conscious attempt at rebranding. His appointment as Honorary Consul of the Slovak Republic added diplomatic legitimacy, which he complemented with visible CSR initiatives, including ambulance donations and high-profile charity events.

Heavy police presence in Langford Town

Following the incident, police personnel from the Central division were deployed outside the Confident Group building in Langford Town, which also houses the Slovak Honorary Consulate in Bengaluru.

The otherwise busy premises near Hosur Road wore a deserted look on Friday, reflecting the shock and uncertainty that followed the tragedy.

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