GST impact: Council increases cess on cigarettes

500,000 new assessees join GST Network, taking total registrations to 7.5 million

In an out-of-turn meeting, the Goods and Services Tax (GST) Council meeting on Monday raised the cess on cigarettes, in a bid to reduce profiteering by companies and harm to public health. The exact amount of the cess would depend on the length of the cigarettes.

At present, cigarettes are taxed at the peak rate of 28 per cent, along with a cess of 5 per cent. This is lower than what it was before the July 1 roll-out of the new tax regime. The increase will give Rs 5,000 crore extra revenue to the Centre’s exchequer; this will be