Sin goods to face extra levy over 40% GST: CBIC chief Sanjay Kumar Agarwal

CBIC chief says repayment of compensation cess loan likely to be completed by Dec-end

The goods and services tax (GST) reforms may not bring cheer to smokers and gutkha manufacturers, as the government will impose an additional levy on sin goods over and above the 40 per cent tax, even after loans for the compensation cess are fully repaid, Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal said in an interview. 

“On sin goods, the duty incidence will not come down. So there will be something that can be levied on sin goods as provided under the Constitution. Whatever fiscal or tax space is provided by the Constitution,