Cigarettes to cost more as GST Council okays higher cess rates

ITC share price registered a sharp fall Tuesday over higher India Tv

The GST Council in an emergency meeting on Monday hiked cess on cigarettes to ensure that overall taxes on them does not fall in the GST regime.

However, telecom minister Manoj Sinha said operators should pass on the benefit of input tax credit of 2% under GST, which will bring the effective tax rate for consumers to 16%.

"In respect of cigarettes, the Fitment Committee had recommended that in line with the weighted average Value-Added Tax rate (28.7%) the GST rate on cigarettes may be kept at 28%", the official statement said. For non-filter cigarettes, not exceeding 65 mm, the rate has been increased to 5 percent plus Rs 2,076 per thousand sticks from existing rate of 5 percent plus Rs 1,591.

While the ad valorem remains the same, the numerical amount depending on the length of cigarettes was increased here on Monday by the Council.

Filter cigarettes of 65 to 70 mm length would now attract a 5 percent plus Rs 2,747 per thousand stick cess as compared to present 5 percent plus Rs 2,126.

Length up to 65-70 mm: Increase of Rs 0.621 per cigarette.

"Now this rate (fixed by the fitment committee) when translated as a part of cost of the cigarette itself, indicated that the impact of the cascading effect has not been factored in". The same for 70 mm to 75 mm cigarettes would be 5 percent plus Rs 3,668 per thousand sticks.

The GST Council will meet next in the first week of August to review the progress of the new tax regime's implementation, Jaitley said.

Consumer prices will, however, not change as the increased tax incidence would only take away the windfall profits the manufacturers were earning, the finance minister said.

The meeting, called at a short notice, would be chaired by Finance Minister Arun Jaitley through video-conferencing as state Finance Ministers were not in the national capital.

"This figure is nearly multiplying everyday". "This is an operational issue. let us see how to resolve this", he said.

Related News:

  • Arab states call for World Cup boycott of Qatar

    Arab states call for World Cup boycott of Qatar

    In a statement denying the Post's reports, ambassador Yousef al-Otaiba pointed again to Qatar's apparent support of terrorists. The officials said it was unclear if the UAE hacked the websites or paid for it to be carried out, the newspaper reported.
    Woman dragged along Rome metro platform after bag gets caught in door

    Woman dragged along Rome metro platform after bag gets caught in door

    Reports claim the door sensors failed to alert the driver to a problem because the bag straps were too thin to register. She is dragged along the platform and local media says passengers quickly hit the emergency buttons but nothing worked.
    Court Starts Hearings to Decide Prime Minister's Future

    Court Starts Hearings to Decide Prime Minister's Future

    Exactly 24 years ago, Nawaz Sharif was removed from office on nearly the same charges he is facing today. The findings of the JIT are not just damning for the ruling party, but also for the country's democracy.
  • Disney are building a Star Wars theme park and it looks incredible

    Disney recently came up with trailers upon trailers of all the new experiences they are going to bring to you. Of course, it will, Star Wars is a huge franchise and is enjoyed by Billions of people worldwide.
    Massive Alaska quake sparks tsunami warning near Russian Federation

    Massive Alaska quake sparks tsunami warning near Russian Federation

    Originally recorded as 7.4 magnitude, it has been upgraded to magnitude 7.8 the US Geological Survey says. Tsunami waves, however, were unlikely to reach Kamchatka's eastern coast, some 500 km (310 miles) away.
    Riders can now tip Uber drivers in DC and nationwide

    Riders can now tip Uber drivers in DC and nationwide

    There will be no minimum tip, but riders will only be able to tip the driver two times the fare up to $100. If Uber competitor Lyft's experience is any guide, local drivers could be in line for lots of tips.
  • LeT man suspected in UP fidayeen attack held at city airport

    LeT man suspected in UP fidayeen attack held at city airport

    At least seven jawans were killed in the attack, which was conducted by terrorists who wore clothes resembling the CRPF uniform. This arrest is followed by a Lashkar-e-Taiba module busted by Jammu and Kashmir police in which the cops arrested two people.

    Morning Stock Stories: Magellan Midstream Partners, LP (NYSE: MMP)

    Looking at some alternate time periods, the 12 month price index is 1.17147, the 24 month is 1.29986, and the 36 month is 0.75742. Chickasaw Capital Management LLC boosted its stake in shares of Dominion Midstream Partners, by 61.4% in the first quarter.
    Nearly All Boxed Mac and Cheese Contains Phthalates, New Study Shows

    Nearly All Boxed Mac and Cheese Contains Phthalates, New Study Shows

    Instead, they find their way into our food, personal care products and toys when the oil and gas, which is no laughing matter. Slate points out that the study, first reported by The New York Times , leaves out how much phthalates were found .
  • 1-year-old boy abducted in Northern Calif. found safe, CHP says

    1-year-old boy abducted in Northern Calif. found safe, CHP says

    Blevin told the newspaper that he saw an addled Gutierrez pacing and muttering to himself outside the stolen vehicle . Officers said the baby's father forgot something inside their home when he ran inside to grab it.
    Katrina Kaif's birthday is the only date Salman Khan remembers!

    Katrina Kaif's birthday is the only date Salman Khan remembers!

    Well, what happened was that Katrina Kaif was present at the stage and among the audience at the same time. Tiger Zinda Hai , a sequel to the 2012 blockbuster Ek Tha Tiger , is being directed by Ali Abbas Zafar .
    EU Weighs New N.Korea Sanctions After Missile Test

    EU Weighs New N.Korea Sanctions After Missile Test

    The Red Cross has proposed the reunions for October, during the Chuseok holiday. Since no truce was agreed, the two sides remain technically at war.


Most liked

UAE minister denies any hacking of Qatar
Egypt has scrapped visa free travel for Qatari nationals amid the ongoing diplomatic crisis between Qatar and four Arab nations. Qatar said in late May that hackers had posted fake remarks by the emir, an explanation rejected by Gulf states.

Parliament Monsoon Session: Lok Sabha adjourned for day
The Prime Minister also called on all the party to support the war against corruption, which has been initiated by the government.

Japan says this is a time to raise pressure on North Korea
The last time Seoul held government talks with Pyongyang was in August 2015 under the former Park Geun-hye administration. Primary users of fuel products in North Korea include fishermen, farmers, truckers and the military.

VIDEO Milan, Lucas Biglia arriva a Linate
Biglia è troppo felice di questa scelta - ha affermato Montepaone -, arriva domani (oggi, ndr) a Milano e non vede l'ora di iniziare".

Partly sunny, with highs in the upper 70s — Sunday weather
An isolated thunderstorm may linger overnight with a few run of the mill showers last into Tuesday . Friday night , it will be mostly clear, with a low of 78, according to the weather service.

Kid Rock to run for US Senate
He said last week that he plans on continuing to write and produce music during his presumed Senate run, saying "it's not a hoax". But Kid Rock responded to Stabenow last week and sounded like a real politician in the process. "I'll be honest", Sen.

Mexico welcomes US NAFTA objectives, eyes stronger North America
That goal, titled "Trade remedies", adds to the perception that Trump is seeking a protectionist policy, analysts say. But the size of the deficits steadily began to increase afterward.

Afghan forces retake district in Helmand from Taliban
Abdul Latif raised concerns about whether Afghan National Security Forces would be able to keep control of Nawa if they retook it. In a New York Times report published July 14, Afghan Army Corps Operations Chief Lt.

Parliament monsoon session 2017: Opposition to corner Centre on China standoff, Kashmir
Parliamentary Affairs Minister Ananth Kumar said 21 bills were pending in the Lok Sabha and 42 in the Rajya Sabha. The monsoon session of Parliament will start from Monday and will continue till 11th of next month.

Major insurance groups call part of health bill 'unworkable'
Some pointed out that even without good insurance, it's not like McCain would have been unable to afford the care he needed. . The Senate is having a really rough time getting its version of a health care bill passed.

Hingis and Jamie Murray win at Wimbledon
The target is to enjoy being Wimbledon champion for a year and Australian Open champion for a year". Muguruza lost to Williams' younger sister, Serena, in the 2015 Wimbledon final.

Ostia, tromba d'aria: volano gli ombrelloni
Il fenomeno, avvenuto sulla spiaggia dello stabilimento Zenit , ha colpito o di sprovvista i bagnanti numerosi in quel momento. Un ferito grave è stato trasportato all'ospedale Grassi in codice rosso per un trauma cranico .

Trump Admin Preparing Another Round of China Sanctions over North Korea Ties
Such trade hasn't sat well with Trump. "There are some people who think we should engage early with Pyongyang ". The dictator has anxious observers following recent tests of Inter Continental Ballistic Missiles (ICBM).

Trump on Don Jr's oppo meeting with the Russians: "That's politics!"
Opposition researchers from both parties have contested Trump's claim that such activity is common or accepted practice. Mark Warner, D-Va., said on " Meet The Press ".

South Korea offers talks on tension, family reunions with North
North Korea is believed to possess hundreds of missiles capable of striking South Korea and Japan. This initiative is for the benefit of regional peace and development, he noted.