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GST Council increases cess on cigarettes

IANS  |  New Delhi 

In view of the reduction in incidence on cigarettes, the Council on Monday raised the compensation cess rates on the demerit good.

"In first 15 days of implementation, it was noted that the 28 per cent rate plus compensation cess on cigarettes when translated, the impact of cascading effect had not adequately factored in, resulting in windfall gain for the cigarette companies," Finance Minister Arun Jaitley said here after the council meet.

Now the rate on cigarette remains at 28 per cent, the ad valorem at 5 per cent with the numerical amount on each category of filtered and non-filtered cigarettes being raised to Rs 2,076 per 1,000 units, Rs 2,747 per 1,000 and Rs 3,668 per 1,000 of different categories of cigarettes.

For other cigarettes the ad valorem has been increased to 36 per cent plus Rs 4,170 per 1,000 units.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 17 2017. 20:24 IST