Increase in the Compensation Cess rate on cigarettes to make the total tax incidence on cigarettes in GST regime at par with the total tax incidence in pre-GST regime
GST
Dated:- 18-7-2017
In pursuance of the recommendations of the GST Council in its 14th Meeting held on 18.05.2017 and 19.05.2017, the Compensation Cess rates under Section 8 (2) of the Goods and Services Tax (Compensation to States) Act, 2017, was notified vide notification No.1/2017-Compensation Cess (Rate), dated 28.06.2017 on Intra-State or Inter-State supply of the specified goods, including cigarettes.
In respect of cigarettes, the Fitment Committee had recommended that in line with the weighted average VAT rate [28.7%], the GST rate on cigarettes may be
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nd recommended the following increase in the same with effect from 00 hours on 18th July, 2017 i.e. the midnight of 17th and 18th July, 2017:
Compensation Cess Rates
Tariff Item
Present rate
Proposed Increase
New rates
Non- filter
2402 20 10
Not exceeding 65 mm
5% + ₹ 1591 per thousand
Rs.485 per thousand
5% + Rs.2076 per thousand
2402 20 20
Exceeding 65 mm but not 70 mm
5% + ₹ 2876 per thousand
Rs.792 per thousand
5% + Rs.3668 per thousand
Filter
2402 20 30
Not exceeding 65 mm
5% + ₹ 1591 per thousand
Rs.485 per thousand
5% + Rs.2076 per thousand
2402 20 40
Exceeding 65 mm but not 70 mm
5% + ₹ 2126 per thousand
Rs.621 per thousand
5% + Rs.2747 per thousand
2402 20 50
Exceeding 70 mm but
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