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The <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+government&amp;sortorder=effectivedate">Indian Government</a> is planning to introduce all kinds of taxes for <a href="http://www.businessinsider.in/searchresult.cms?query=tobacco&amp;sortorder=effectivedate">tobacco </a>products under <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">Goods and Services Tax</a> (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>) regime. 
 The government wants to you to consume less <keyword id="6361871" type="ORGANIZATION" weightage="20" keywordseo="tobacco">tobacco</keyword> products and in this regard, the government might introduce 28% tax all such products, including bidis. 
 
The<a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate"> Arun </a><a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Jaitley</a>-led <keyword id="47209" type="ORGANIZATION" weightage="20" keywordseo="Finance-Ministry">Finance Ministry</keyword> has already put aerated drinks, tobacco products, luxury cars and pan masala in the 'demerit goods' category, which is attract higher taxes in GST. The health ministry suggested the cess levied under the GST should be high enough to make these products unaffordable over a period of time. 
 
The health ministry, in its memorandum, suggested that exemptions from the high taxation norms should not be extended to industries with low turnover such as bidi manufacturers as this will allow them to manipulate norms. 
 
"Taking advantage of this exemption, bidi manufacturers closed bigger units and started producing on small scale under different names in a clandestine manner, resulting in huge tax evasions," the memorandum said. 
 
As per government estimates, merely the health cost on account of tobacco consumption is pegged at over Rs 10,40,500 crore in 2011 for people aged between 35 to 69 years. Every year, about 10 lakh Indians die from tobacco-related diseases.

Government wants you to ditch tobacco by making it costlier

It’s been a month that India’s leading conglomerate <keyword id="121459" type="CITY" weightage="20" keywordseo="ITC-Ltd">ITC Ltd</keyword> has increased the prices of its cigarettes <keyword id="42407" type="ORGANIZATION" weightage="60" keywordseo="Navy">Navy</keyword> Cut and <keyword id="489337" type="UNKNOWN" weightage="20" keywordseo="Gold-Flake">Gold Flake</keyword>. And with the budget day nearing, the smokers enjoying the winter breeze are anticipating another hole in the pocket very soon. The heat of the hike in price was felt by the people who buy full packet as the price of Navy Cut packet, which has gone up by Rs 11 to Rs 89 now. <a href="http://www.businessinsider.in/chinas-tourism-is-much-ahead-of-india-hereswhy/articleshow/56719212.cms">ALSO READ: Why China is ahead of us in tourism?</a> 
 
While the sudden surge in the price hasn’t been explained much by the company, revision of prices is quite common in pre-budget season. 
The demonetization in November has affected the tobacco industry quite deep. Most road side sellers, for first few weeks, didn’t understand how to operate digital payments. And that served as a major setback for the industry. While cigarette is quite important from the economy point of view, doctor’s advice, healthy living and several anti-smoking drives have already unnerved the sector since last few years. 
 
If the prices go further up, which is very highly possible this time, the<a href="http://www.businessinsider.in/searchresult.cms?query=tobacco&amp;sortorder=effectivedate"> cigarette companies</a> would need to subsidize on the prices and incur some losses as usual. 
 
<a href="http://www.businessinsider.in/your-air-travel-might-get-expensive-after-the-budget-speech-in-february-heres-why/articleshow/56647465.cms">ALSO READ: Air travel to get dearer after GST</a> 
 The finance ministry is also ready with <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword> rollout, which is now expected to go live on July 1. While cigarettes have been kept at 40% tax limit, experts believe, it should have been at 80%. Since these are a highly demerit product, <a href="http://www.businessinsider.in/searchresult.cms?query=tobacco&amp;sortorder=effectivedate">40% of GST</a> indicates need for Rs 1902 crore of excise tax per 1,000 sticks in order to make sure the revenue from cigarettes stay intact. 
 
“The taxation on tobacco should also be rationalized by a duty structure which is a mix of fixed and <a href="http://www.businessinsider.in/searchresult.cms?query=tobacco&amp;sortorder=effectivedate">ad-valorem</a> duty rather than only fixed duty component. By doing this, the Government will be able to generate additional revenue to the tune 20K-30K crore per annum which can be used for social and other activities and will also be discouraging the consumption of tobacco as per the WHO norms. Meanwhile alternative crop for tobacco farmers should also be given top priority, so as to keep their interest,” said <keyword id="67987" type="PERSON" weightage="20" keywordseo="Sanjay-Dalmia">Sanjay Dalmia</keyword>, Chairman of <keyword id="4095501" type="UNKNOWN" weightage="20" keywordseo="dalmia-group-of-companies">Dalmia Group of Companies</keyword> and also an expert in tobacco and pharmaceutical sector.

Statutory
Warning: Cigarettes to cost more after budget?

It is likely that <a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Finance Minister Arun Jaitley</a> will increase the <a href="http://www.businessinsider.in/searchresult.cms?query=service+tax&amp;sortorder=effectivedate">service tax</a> from 15% to at least 16% in the run up to Goods and Services Tax (GST) rollout. 
 
During <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2017&amp;sortorder=effectivedate">Budget 2017</a>, Jaitley is expected to close gap with 18% <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">GST</a> rate as most of the services are likely to attract a tax of 18% under GST. 
 <keyword id="117924" type="UNKNOWN" weightage="20" keywordseo="GST-Rollout">GST rollout</keyword> is expected to happen on July 1 as stalemate over dual control continued in the GST Council meeting. 
 
So, the government may slap a higher service tax for three months to somewhat offset the revenue loss after the GST kicks in. 
 
As per industry experts, a service tax closer to the GST rate will give time to consumers to adjust to the new rate. 
 
Service tax accounts for over 14% of Indian government’s total tax revenues. In 2016-17, Rs 231,000 crore service tax accounted for total tax revenues of Rs 16,30,887 crore. 
 
The GST Council has agreed on a four-slab structure –5, 12, 18 and 28 percent—along with a cess on luxury and sin products such as tobacco.

Arun Jaitley may increase service tax from 15% as precursor to GST rollout

New Delhi, Feb 1 () Imposition of additional duty on cigarette by the government would increase pressure on the industry and will encourage its smuggling in India by illegal trade operators, the Tobacco Institute of India (TII) said on Saturday.
 While presenting the Union Budget for 2020-21, Finance Minister Nirmala Sitharaman proposed to increase the National Calamity Contingency Duty (NCCD) on cigarettes, hookah, chewing tobacco, snuff and tobacco extracts and essence.
 "The increase in NCCD announced in the Union Budget 2020-21 and the resulting escalation in cigarette taxation leading to higher tax arbitrage will serve as a huge incentive to illegal cigarette trade operators, who target India as a preferred destination for smuggled cigarettes," TII in a statement.
 It said "in the current economic environment the proposed increase announced in the Union Budget on NCCD will aggravate the pressure on the legal cigarette Industry, encourage illegal cigarette trade and adversely impact tobacco farmer earnings whose livelihood is intrinsically connected with legal cigarette value-chain".
 According to TII, NCCD was introduced in 2001 as a levy of a special surcharge on central taxes for a limited period. However, while almost all cesses and surcharges were discontinued in the GST regime, levy of NCCD on tobacco products continued.
 "TII had also requested the government for the abolition of NCCD on the ground that this levy is against the principles of GST which, inter alia, seeks to eliminate cascading of taxes," it said.
 TII claims to be a representative body of farmers, manufacturers, exporters of the cigarettes segment of the tobacco industry in India, whose members account for more than 98 per cent of the country's domestic sales.
 According to TII, illegal cigarettes have grown consistently in the country and now account for one fourth of the Indian cigarette market.
 Citing a report from the market research agency Euromonitor International, TII said that India is now the fourth largest illegal cigarette market in the world.
 The illicit cigarettes has increased from a level of 11.1 billion sticks in 2004 to 25.6 billion sticks in 2018, resulting in an annual revenue loss of Rs 13,000 crore to the government. KRH DRR

Increase in cess on cigarette to escalate its smuggling: Tobacco Institute of India

New Delhi, Dec 17 () A day before the GST Council meeting, farmers' body FAIFA on Tuesday asked the government to have a taxation policy that disincentivises cigarette smuggling in India. 
 The Federation of All India Farmer Associations (FAIFA), which claims to represent farmers of commercial crops from various states, including Andhra Pradesh, Telangana, Karnataka and Gujarat, said there has been an increase in smuggled, illicit and contraband cigarettes due to higher taxation on the legal cigarette industry. 
 As a result, tobacco farmers have been adversely affected, the body said in a letter to Finance Minister Nirmala Sithraman, and asked the government to save livelihoods of such tobacco farmers. "FCV tobacco farmer is on verge of losing his one and only livelihood due to increase in input costs and drastic decrease in income which is caused by illicit cigarette trade in India," FAIFA president Javare Gowda said in a statement.
 He further said, "We would like to appeal to government to have a taxation policy that disincentivises cigarette smuggling in India, which will help curb illicit trade and increase the demand of domestic Indian grown tobacco."
 FAIFA's demand comes a day ahead of the meeting of the GST Council, the highest decision making body of the indirect tax regime, here on Wednesday.
 The tobacco farmers' body claimed that there has been over 40 per cent reduction in FCV (Flue-Cured Virginia) tobacco cultivation, resulting in loss of more than Rs 5,000 crore to farming community in the last six years.
 Moreover, the government revenue loss is in excess of Rs 13,000 crore on account of illicit cigarette trade, it claimed.
 Due to higher taxation, smuggled, illicit and contraband cigarettes, FCV tobacco production of 325 million kgs in 2013-14 came down to 210 million kgs in 2019-20, it added.
 On the other hand, the entire legal cigarette value chain is presently reeling under penal taxation on account of continuous increases in excise duties and compensation cess on cigarettes, which have cumulatively gone up by over 200 per cent from 2011-12, FAIFA claimed.
 "As a result of high taxes and growth of illegal cigarette trade, legal cigarettes have dropped by more than 25 per cent between 2011-12 and 2018-19, while illegal cigarettes have grown by 31 per cent during the same period," it said. RKL RVK

FAIFA asks govt for tax policy that disincentivises illegal cigarette trade

New Delhi, Dec 17 () Ahead of crucial GST Council meet on Wednesday, industry body FICCI's arm made a case for maintaining GST rate on tobacco products at present level saying any increase would lead to rise in smuggling and will adversely impact domestic industry.
 Currently, GST rate on these products are 28 per cent while cess varies between 61 to 204 per cent.
 FICCI CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) said various agencies seized illicit cigarette worth about Rs 18 crore so far this year.
 It said that there has been spurt in smuggling due to increase in tax in the past few years. The illegal cigarette trade has more than doubled from 12.5 billion sticks in 2005 to 26.5 billion sticks in 2018.
 "We must also remember that a higher tax rate provides greater incentive for evasion," said P C Jha, former Chairman, Central Board of Indirect Taxes and Customs and Advisor, FICCI CASCADE.
 "It is therefore necessary that legal products are made available at affordable prices, and it is in our best interest that we take a serious look and rationalise the tax structure on cigarettes, and do not allow anti-social elements to make deep inroads in our country," he said.
 Jha said the impact of smuggling on India's legal cigarette industry is massive. Citing a report, he said it continues to face an uphill task as penetration of illicit cigarettes in India has now reached a whopping 24.3 per cent.
 With GST collection under pressure, there is demand for raising rates on certain items and also cess to meet the shortfall.
 However, experts are of view that further increase in GST rates would fuel inflation, which is on the rise for past few months.
 Both Centre and States are expected to arrive at a decision which can boost revenue without hurting inflation.
 The Central GST collection fell short of the Budget Estimate by nearly 40 per cent during the April-November period of 2019-20, according to government data.
 The actual CGST collection during April-November stood at Rs 3,28,365 crore, while the Budget Estimate was Rs 5,26,000 crore for these months. DP DRR

FICCI CASCADE for status quo on GST rate on tobacco products to check smuggling

Bhopal, Jun 22 () GST intelligence officials have detected tax evasion of Rs 105 crore by a cigarette manufacturing firm in Indore in the last one year, according to an official statement issued on Monday. The officials of the Directorate General of GST Intelligence (DGGI) here had conducted searches at the firm's premises last week that revealed that a secret exit had been set up on the rear side of the factory through which unaccounted raw materials were brought in and finished goods cleared, it said explaining the modus operandi. It was also found that the generator sets used for operating machines were manipulated to suppress production, the probe agency said. "Investigations conducted by the DGGI has unearthed a major tax/ duty/ cess evasion estimated to be about Rs 105 crore only for the period since April, 2019 till May, 2020," said the statement issued by the Additional Director General, DGGI Bhopal. Similar evasion is suspected to have been resorted to by the unit during remainder of GST and erstwhile central excise periods also, it said. "Hence the total revenue evasion, which would be clear only after completion of investigation, is suspected to be multiple times higher," the DGGI said. The financial investigations into the dealings of the mastermind, who was recently arrested by the DGGI in another case, has indicated that he had opened a media house in which he declared his circulation of newspaper copies at 1.2-1.5 lakh per day while actually circulation was only 4,000-6,000 per day, it said. "Thus, the mastermind of this fraud laundered huge amounts of illicit wealth (in cash) earned from illicit pan masala/ cigarettes business by declaring fraudulent sale of newspapers and also booked fictitious advertising incomes," the statement said. The DGGI said that, from the interrogation of the factory supervisor, accountant and other staff, it is estimated that less than five per cent of the production was accounted for since last many years. "Even for the accounted production, the major buyers (of these five per cent sale) have been found to be fictitious," it said. On June 19, the DGGI officials were also successful in locating one of the clandestine and unregistered godown used by the tax evaders to conceal the packing material containing specific brands of cigarettes such as K10 and A 10, the statement said. "Investigations have revealed that the seized packing material is sufficient to pack 5000 cartons (each carton containing 12,000 cigarettes) with estimated printed MRP of Rs 27 crore," it said. However, it is suspected that there may be a large number of other such clandestine and undeclared godowns in and around Indore which DGGI officials are attempting to locate, the statement said. The supplier of these two brands of packing materials has confirmed the unaccounted supply of about 1,500 cartons per month, it added. As part of 'Operation Kark', the DGGI Bhopal officials had conducted searches in the premises of over a number of pan masala/ tobacco dealers and distributors from June 9 to 12th, leading to huge seizures of clandestinely stocked non-GST paid pan masala/tobacco and detection of estimated Goods and Services Tax (GST) evasion of Rs 400 crore. The operation has been named 'Kark' -- considering the high Goods and Services Tax (Kar in Hindi) loss and the reported adverse effects of consuming illicit tobacco not subject to food and safety standards leading to high prevalence of oral cancer (Kark) in India. One of the masterminds and financial beneficiaries in this case was arrested from Mumbai on June 15. Further investigations revealed that he was involved in manufacture and supply of cigarettes from a unit in Indore. Data analysis by the DGGI officials indicated that this unit had paid a GST of only Rs 2.09 crore and Rs 1.46 crore in last two financial years, respectively. Based on further analysis and information collected, searches were conducted at five premises connected with this unit last week, the statement said. "The tax evasion syndicate in this case involves directors of the company, transporters, supporting manufacturers and raw material suppliers. Number of these persons are presently absconding and have not joined DGGI investigations," it said. AKV SMN

GST intelligence officials detect Rs 105 crore tax evasion by Indore-based cigarette manufacturer

(Image Credit- IANS) <ul><li><keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword> rate cuts will cover nearly 25 categories under the country’s Goods and Services Tax (GST) that fall under the highest tax slab of 28%. </li><li>An estimated 1,200 items will remain in the highest tax category that most include luxury or ‘sin’ items. </li><li>Items that could become cheaper may include cement, certain television sets, digital cameras and movie tickets.</li></ul> Ahead of elections, Indian Prime Minister <keyword id="6354477" type="PERSON" weightage="20" keywordseo="Narendra-Modi">Narendra Modi</keyword> has promised further cuts on nearly 25 categories under the country’s Goods and Services Tax (GST) that fall under the highest tax slab of 28%. On Tuesday, Modi <a href="https://indianexpress.com/article/india/pm-narendra-modi-simplifying-further-99-per-cent-items-can-soon-be-in-18-per-cent-gst-slab-or-less-5499646/">said </a>that his government is working towards making only 1% of items in the highest tax category of 28% and all other consumer goods and services will attract GST tax rates of 18% or less. An estimated 1,200 items will remain in the highest tax category that most include luxury or ‘sin’ items including luxury cars, aircraft, televisions, alcohol and tobacco products. Other items that could become cheaper may include cement, certain television sets, digital cameras and movie tickets, Indian Express <a href="https://indianexpress.com/article/india/pm-narendra-modi-simplifying-further-99-per-cent-items-can-soon-be-in-18-per-cent-gst-slab-or-less-5499646/">reported</a>. Earlier this year, India’s GST Council removed about 14 items from the highest tax category. India currently has four slabs for GST: 5%, 12%, 18% and 28%. About 40% of products and services fall under the 18% tax category. The move comes just months ahead of India’s general elections and in the wake of the <keyword id="58687" type="ORGANIZATION" weightage="20" keywordseo="Bharatiya-Janata-Party">Bharatiya Janata Party</keyword> losing important <a href="https://www.businessinsider.in/we-accept-the-peoples-mandate-indias-state-election-results-prove-a-huge-setback-for-pm-narendra-modis-bjp/articleshow/67053526.cms">ground </a>in three important state elections recently. The tax cut will, however, be a hit on indirect revenue collection for the government at a time when it is struggling to meet its fiscal deficit <a href="https://www.businessinsider.in/indian-government-may-not-meet-its-fiscal-deficit-target-because-of-lower-tax-collections-india-ratings/articleshow/66824092.cms">target</a>. The implementation of the GST, India’s biggest tax reform since independence, was one of the biggest items on Modi’s economic reform agenda. See also: <a href="https://www.businessinsider.in/indian-government-may-not-meet-its-fiscal-deficit-target-because-of-lower-tax-collections-india-ratings/articleshow/66824092.cms">Indian government may not meet its fiscal deficit target because of lower tax collections: India Ratings</a> <a href="https://www.businessinsider.in/with-a-new-governor-in-place-indias-government-looks-likely-to-get-a-payout-from-the-central-bank-before-the-end-of-financial-year/articleshow/67144051.cms">With a new governor in place, India’s government looks likely to get a payout from the central bank before the end of financial year </a> <a href="https://www.businessinsider.in/indias-largest-fuel-retailer-is-undertaking-its-biggest-share-buyback-since-2001-in-order-to-help-the-central-government-meet-its-disinvestment-target/articleshow/67090226.cms">India’s largest fuel retailer is undertaking its biggest share buyback since 2001 in order to help the central government meet its disinvestment target</a>

Indian PM Narendra Modi promises his government will slash GST rates on over two dozen consumer items in the highest tax category

The next few meetings of the <keyword id="6355040" type="General" weightage="20" keywordseo="gst-council" source="Orion">GST Council</keyword> would take the country's new indirect tax regime closer to the goal of providing a transparent tax system with minimal exemptions and fewer rates. Sources working on the <keyword id="6354679" type="General" weightage="100" keywordseo="gst" source="Orion">GST</keyword> rate rational said that a three rate tax structure may become a reality early next fiscal after the views of a group of ministers (GoM) set for purpose is presented before the GST Council. The idea is, sources said, to move away from the present broad five rate structure of zero, 5, 12, 18 and 28 per cent to just three of 5, 18 and 28 per cent. There would be a small list of exempted items while certain demerit goods could continue to attract higher duty levels. The lowering rates into three slabs would be done by merging two existing slabs (12-18 per cent), and progress in this direction would be made in phases with rate changes cleared by the GST Council before a three rate structure is placed for all items. Chief Economic Adviser in the Union finance ministry <keyword id="887645" type="General" weightage="20" keywordseo="krishnamurthy-subramanian" source="Orion">Krishnamurthy Subramanian</keyword> has also said that the big reform in GST rates would be undertaken soon as was envisaged earlier. India has four primary GST rates of 5 per cent, 12 per cent, 18% per cent, and 28 per cent. There is also a cess on luxury and demerit goods such as automobiles, tobacco and aerated drinks. On precious stones and metals, special rates of 0.25 per cent and 3 per cent, respectively, are applicable. A proposal to merge the 12 per cent and 18 per cent slabs into a single rate has been discussed for several years. It was expected that a move in the direction would be taken in FY21. But <keyword id="8764262" type="General" weightage="20" keywordseo="covid" source="Orion">Covid</keyword> disruptions and sharp fall in collections and relief measures derailed the plan on rate rationalisation. With GST collections again going up over Rs 1 lakh crore mark, the thinking is that three rate structure should be out at the earliest. If the council approves the merger of the two rates, items such as ghee, butter, cheese and spectacles may become expensive, while soap, kitchenware and apparel may become cheaper. Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> had recently indicated that the effective tax rate under GST had slipped from the original revenue neutral rate of 15.5 per cent to 11.6 per cent 'knowingly or unknowingly' due to multiple rate cuts since GST's introduction in July 2017. The process of rate rationalisation is expected to correct this gap through rate changes in several product categories.

Three-tier GST rate structure could be announced as soon as next financial year, says report

<ul><li>Following the <keyword id="28504" type="LOCATION" weightage="20" keywordseo="Kerala">Kerala</keyword> <keyword id="48088" type="COMPANY" weightage="20" keywordseo="floods">floods</keyword> in late August, it was found that the National <keyword id="41418" type="PERSON" weightage="20" keywordseo="Disaster">Disaster</keyword> Relief Fund (NDRF) was insufficiently capitalised to finance relief efforts. </li><li>In light of this, the Indian government has instituted a panel, comprising several state finance ministers, to assess the feasibility of introducing a “natural disaster tax” under the <keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword> regime. </li><li>It remains to be seen whether the <keyword id="6386887" type="UNKNOWN" weightage="20" keywordseo="cess">cess</keyword> would be a state-level or national-level <keyword id="45031" type="PERSON" weightage="20" keywordseo="Tax">tax</keyword> and whether it would imposed on a specific set of items or all items. A questionnaire will be sent to all states to get their views on the same. </li></ul>In the aftermath of the Kerala floods in late August, in which close to 500 people died and the damages were estimated to be around ₹200 billion, a major criticism was levied at the central government’s slow release of aid funds. It was found that the National Disaster Relief Fund (NDRF) and State Disaster Response Fund (SDRF) were insufficiently capitalised. In addition, the process of applying for and receiving aid from the corpus fund is extremely <a href="https://www.business-standard.com/article/current-affairs/flood-ravaged-kerala-s-wait-for-full-central-aid-package-could-be-long-118082700019_1.html">time-consuming</a>. The NDRF is funded by a “National Calamity Contingent Duty” on tobacco products and similar items. However, after the imposition of GST last year, the contributions to the fund have been declining. In light of this, the Indian government has instituted a panel, comprising several state finance ministers, to assess the feasibility of introducing a “natural disaster tax” under the Goods and Services Tax (GST) regime. The panel, which is led by Bihar deputy CM Sushil Kumar Modi, is set to consult India’s attorney general, K. K. Venugopal, on the legal implications of levying a disaster tax to fund the recovery efforts of states that have been struck by natural disasters. Under the GST Act, states are allowed to charge a cess in the event that they suffer losses of revenue due to the implementation of the GST regime. A disaster cess would require the approval of an apex court. The GST Council decided to form the panel <a href="https://www.ndtv.com/india-news/gst-council-meets-to-consider-new-tax-for-kerala-flood-future-calamities-1923718">at the end of September </a>following a proposal from the government of Kerala to impose an additional 10% cess on specific goods sold in the state so as to fund reconstruction and rehabilitation. At the time, the central government said that the Kerala’s proposal would be difficult to implement given the absence of any tax credits on cesses. It remains to be seen whether the cess would be a state-level or national-level tax and whether it would imposed on a specific set of items or all items. A national-level tax under the GST regime seems more likely after the panel recognised the possibility that residents of Kerala would opt for large purchases outside the state so as to avoid paying the additional cess. A questionnaire will be sent to all states so as to establish a majority consensus on the above issues. The panel’s next meeting will be in November.

You Searched For "gst on tobacco products" and got 10 results

Government wants you to ditch tobacco by making it costlier

BI India Bureau

Statutory Warning: Cigarettes to cost more after budget?

Suchayan Mandal

Arun Jaitley may increase service tax from 15% as precursor to GST rollout

BI India Bureau

Increase in cess on cigarette to escalate its smuggling: Tobacco Institute of India

PTI

FAIFA asks govt for tax policy that disincentivises illegal cigarette trade

PTI

FICCI CASCADE for status quo on GST rate on tobacco products to check smuggling

PTI

GST intelligence officials detect Rs 105 crore tax evasion by Indore-based cigarette manufacturer

PTI

Indian PM Narendra Modi promises his government will slash GST rates on over two dozen consumer items in the highest tax category

BI India Bureau

Three-tier GST rate structure could be announced as soon as next financial year, says report

IANS

India is mulling the introduction of a “natural disaster tax” to fund relief efforts

Dilsher Dhillon

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