<h1>Cabinet Approves Amendment to GST Act, Raising Compensation Cess Cap from 15% to 25% on Specific Motor Vehicles.</h1> The Union Cabinet, led by the Prime Minister, approved a proposal to amend the Goods and Services Tax (Compensation to States) Act, 2017, allowing for an increase in the maximum Compensation Cess rate from 15% to 25% on specific motor vehicles. This change applies to vehicles transporting up to thirteen persons, including the driver, and other motor vehicles under specified headings. The GST Council recommended this increase after noting a decrease in the total tax incidence on these vehicles post-GST implementation. The effective rate of Compensation Cess will be further examined by the GST Council.