In view of the reduction in tax incidence on cigarettes, the GST Council on Monday raised the compensation cess rates on the demerit good.
Now the tax rate on cigarette remains at 28 percent, the ad valorem at 5 percent with the numerical amount on each category of filtered and non-filtered cigarettes being raised to Rs 2,076 per 1,000 units, Rs 2,747 per 1,000 and Rs 3,668 per 1,000 of different categories of cigarettes.
For other cigarettes the ad valorem has been increased to 36 percent plus Rs 4,170 per 1,000 units.
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