Topic Name – What will be status of Tobacco and Tobacco products under the GST regime
Tobacco and tobacco products would be subject to GST. In addition, the Centre would have the power to levy Central Excise duty on these products.
The tobacco industry is shining , despite the serious warning that smoking and tobacco have ill and negative effect on the human body. Many reports have been released by WHO claiming that India is harbouring the world’s highest incidence of mouth cancer. We are the second largest consumer of tobacco as well as producer, next to china.
The tobacco industry attracts Central Excise duty, National Calamity Contingent Duty (NCCD), GST, and compensation cess as it is a sin good. In fact, a lot of revenue is generated from the sale of tobacco for the Indian government. However, the tax burden levied on the Indian tobacco industry is not enough, as per the recommendation of the WHO for a minimum tax burden of 75% on all tobacco-related products.
The tobacco industry attracts Central Excise duty, National Calamity Contingent Duty (NCCD), GST, and compensation cess as it is a sin good. In fact, a lot of revenue is generated from the sale of tobacco for the Indian government. However, the tax burden levied on the Indian tobacco industry is not enough, as per the recommendation of the WHO for a minimum tax burden of 75% on all tobacco-related products.
Bihar Tax Consultant is among the best and experienced tax consultant in Bihar. Having the years of experience in handling corporate law matters rights from beginning. We provide our guidance on various issue of Company Law , GST Act , Income Tax Act and other corporate Area.
About Tabish Ahmad
Tabish Ahmad is an Advocate at Patna High Court works in the area of Corporate Law and Corporate Litigations. Tabish represented many clients in complex legal issues focusing on corporate compliance. As An Advocate it is the duty towards nations to make the citizen and businessmen aware about laws and compliances in order to comply as law abiding citizens.
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