Cess on cigarettes made it costlier by GST Council

Cigarette makers on Tuesday were choking in trade, with market leader ITC being hit the worst, its stock falling as much as 15 per cent to Rs 276.90 on the BSE, which reduced its market value to Rs. 3.37 lakh crore, compared to Monday’s closing value of Rs. 3.96 lakh crore. The slump comes on the back of the GST Council led by Finance Minister Arun Jaitley on Monday evening hiking compensation cess on cigarettes. 

Cigarettes are categorised as “sin goods” and have been kept in the highest GST slab of 28% , fairly in line with the weighted average VAT (value added tax) rate of 28.7 %  levied in the earlier regime. 

Non-Filtered Cigarettes

  • Up to 65 mm length: Increase of Rs 0.485 per cigarette
  • 65-70 mm length: Increase of Rs 0.792 per cigarette

Filtered Cigarettes

  • Up to 65 mm length: Increase of Rs 0.485 per cigarette
  • 65-70 mm length: Increase of Rs 0.621 per cigarette
  • 70-75 mm length: Increase of Rs 0.792 per cigarette

There will be an increase in the expense of smokers due to the rise in the price of a cigarette.

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