Cars priced over Rs 10 lakh in the country will soon carry additional tax following the latest directive from the Central Board of Indirect Taxes and Customs (CBIC), reported The Economic Times.

According to the report, the government has said that the goods and services tax (GST) is payable on the invoice value plus tax collected at source under income tax and not just on the value of the goods.

This means that consumers will have to cough up GST on the value of tax collected by an auto dealer.

The report added that the tax collected at source will be applicable on automobiles above Rs 10 lakh at the rate of 1 percent and is levied on the ex-showroom price, which includes applicable GST.