19th GST Council Meeting

Looking for the updates of the 19th GST Council Meeting? Here are the most important ones. The goods and services tax (GST) Council on Monday hiked cess on cigarettes to take away the windfall manufacturers were reaping due to an anomaly that crept in after the GST rate fixation, finance minister Arun Jaitley said. While the peak GST rate of 28% stays and so does 5% ad valorem cess on top of it, the fixed cess has been hiked between Rs 485 and Rs 792 per thousand sticks. The increase in cess would bring in Rs 5,000 crore of additional tax revenue which otherwise would have gone to the manufacturers, he said briefing reporters after the council held an emergency meeting through video conferencing. The GST Council had in May fixed 28% as the top rate for cigarettes. A 5% ad valorem cess was levied on top of it and Rs 1,591 per thousand sticks as fixed cess on both filter and non-filter cigarettes of not exceeding 65mm length. The cess rate varied from Rs 2,126 to Rs 4,170 for cigarettes of different lengths. But this rate was lower than the pre-GST tax incidence and the choice before manufacturers was either to pass on the lower taxes to consumers by way of cutting rates or pocketing the windfall. The manufacturers chose the latter. Jaitley said to correct this, the GST Council has raised the fixed cess by Rs 485 to Rs 792 per thousand sticks. Consumer prices will, however, not change as the increased tax incidence would only take away the windfall profits the manufacturers were earning. The GST Council meeting reviewed the compensation cess rates on cigarette & recommended the following increase in the same w.e.f. 00 Hrs on July 18, 2017 HSN Code Description Present Rate Proposed Increase New Rate Non Filter 24022010 <65 mm 5% + Rs 1591 per thousand Rs 485 per thousand 5% + Rs 2076 per thousand 24022020 65 -70 mm 5% + Rs 2876 per thousand Rs 792per thousand 5% + Rs 3668 per thousand Filter 24022030 <65 mm 5% + Rs 1591 per thousand Rs 485 per thousand 5% + Rs 2076 per thousand 24022040 65 -70 mm 5% + Rs 2126 per thousand Rs 621 per thousand 5% + Rs 2747 per thousand 24022050 70-75 mm 5% + Rs 2876 per thousand Rs 792 per thousand 5% + Rs 3668 per thousand 24022090 Others 5% + Rs 4170 per thousand 31 % thousand 36% + Rs 4170 per thousand Hope this article was helpful. Refer to the topics discussed in the 20th GST council meeting About EbizFiling.com: EbizFiling.com is a motivated and progressive firm managed by like-minded people. It helps a variety of small, medium and large businesses to cater to all compliance requirements of Indian Laws. Get in touch for a free consultation on info@ebizfiling.com or call 9643203209.

19th GST Council Meeting

Highlights of 19th GST Council Meeting dated 17th July 2017