Govt caps Maximum GST on tobacco products
The tobacco palm excise rate has been fixed at Rs 4,170 per plant plus 290 per cent ad valorem or 100 per cent of the selling price per unit. Currently, the highest rate is 4,170 rupees per plant plus 290% ad valorem. It is taxed at the highest GST rate of 28%.
The government introduced an amendment in the income tax to pay maximum GST rebates on pan masala, cigarettes and other types of tobacco and link the higher prices to retail sales prices. According to the amendment in the income tax bill, which was passed in the Lok Sabha on Friday, the maximum GST rate for pan masala will be 51% of the retail price per unit, from the current 135% ad valorem .
The tobacco palm excise rate has been fixed at Rs 4,170 per plant plus 290 per cent ad valorem or 100 per cent of the selling price per unit. Currently, the highest rate is 4,170 rupees per plant plus 290% ad valorem. It is taxed at the highest GST rate of 28%. Also Read: KPI Green’s shares increased by 4% following a power purchase agreement. This change will be made in the goods and services tax law (States Compensation) as a provision to reform the tax.
Current notices must be entered separately for these service changes to take effect. In February, the TSG Council, chaired by the Union Minister acting as the State Finance Minister, approved the plans of the ministerial group to fight tax evasion in the pan masala industry and gutkha.
The GoMs did not support jurisdiction-based taxation and suggested that compliance and monitoring measures be taken to include input/output; Export of these products will be permitted only upon issuance of a return letter and subsequent import credit refund; and said that the excise duty levied on these products will be changed from an ad valorem tax to a tax-based tax to trigger the collection of the first phase of GST revenue.
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