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GST Council meet: GoM pitches for 'specific tax levy' on pan masala, gutkha

Proposes levy on 38 such items in the range of 12-69% of retail sale price

Paan masala, gutkha, GST
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The panel has proposed the specific tax rates on 38 such items including pan-masala, hookah, chilam, and chewing tobacco, ranging from 12 per cent to 69 per cent of the retail sale prices of these items

Shrimi Choudhary New Delhi
A group of ministers (GoM) tasked by the Goods and Services Tax (GST) Council to look into capacity-based taxation for evasion-prone commodities like pan-masala and gutkha has proposed a “specific tax-based levy”, which is to be linked to their retail prices.

At present, these commodities attract 28 per cent GST plus an ad valorem compensation cess.

The ministerial panel, led by Odisha Finance Minister Niranjan Pujari, has submitted its final report on the issue, and it is likely to be tabled in the GST Council meeting on Saturday. The report, if approved, will help plug revenue leakages in these sectors at both