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GST Council increases cess on cigarettes, govt set to get extra Rs 5000 cr

GST Council increases cess on cigarettes, govt set to get extra Rs 5000 cr

New Delhi, Jul 17 (UNI) The Goods and Services Tax (GST) Council today raised the cess on cigarettes over the peak rate of 28 per cent, as the effect on their prices was lower under the new taxation regime, than earlier. The fixed cess has been hiked between Rs 485 and 792 per thousand sticks and the specific cess on the basis of the length of cigarettes will be effective from midnight today. After the meeting of the Council through video conferencing, Finance Minister Arun Jaitley said the increase will give the government Rs 5,000 crore more in revenue, which would be used for compensating states. But, he said the consumer prices would not change as the increased tax incidence would only take away the windfall profits the manufacturers were earning. According to Mr Jaitley, as per the Council decision today, the peak GST rate of 28 per cent and ad valorem cess of 5 per cent would remain in place. Mr Jaitley said, “It was noted in the first 15 days of the GST implementation that when the rate on cigarettes was translated, the cascading effect of taxes was not factored in. We noted that cigarette companies were getting windfall profit from reduction in cigarette prices.” Mr Jaitley said the case of non-increase of cess of Rs 5,000 crore additional tax revenue would have gone to the manufacturers. The GST Council had fixed 28 per cent as the top rate for cigarettes in May 2017. A five per cent 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 65 mm 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 Minister said the GST Council will meet in the first week of August to review the progress of the implementation of GST, which was rolled out on July 1. UNI ADP RJ SHK 2214

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Office of Profit Row: complaint filed against Kejriwal, Sisodia, disqualified MLAs

22 Jan 2018 | 10:41 PM

New Delhi, Jan 22 (UNI) A complaint was filed against Delhi Chief Minister Arvind Kejriwal, Deputy CM Manish Sisodia and Delhi Assembly Speaker Ram Niwas Goel besides the disqualified AAP MLAs for misusing public money from the government exchequer.

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PM should also talk about removing the 'divisive' culture of the RSS: Cong

PM should also talk about removing the 'divisive' culture of the RSS: Cong

22 Jan 2018 | 10:13 PM

New Delhi, Jan 22 (UNI) Reacting to the interview by Prime Minister Narendra Modi that his call for a 'Congress-Mukt' Bharat meant that he was looking to remove the culture practised by the Congress, the party on Monday said that the PM should also talk about removing the culture of 'divisiveness' followed by the RSS.

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Rahul meets Australian Leader of Oppn in Senate & Australian High commissioner

Rahul meets Australian Leader of Oppn in Senate & Australian High commissioner

22 Jan 2018 | 9:05 PM

New Delhi, Jan 22 (UNI) Congress president Rahul Gandhi on Monday met Australian Leader of the Opposition in the Senate Penny Wong and the Australian High Commissioner, Harinder Sidhu and held discussions with them on a wide range of issues.

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Modiji calls himself 'aam' but hugs only 'khas' people: Rahul

Modiji calls himself 'aam' but hugs only 'khas' people: Rahul

22 Jan 2018 | 9:03 PM

New Delhi, Jan 22 (UNI) Taking a jibe at Prime Minister Narendra Modi saying, about his hugs with foreign leaders, that he is an 'aam aadmi' (common man) who does not know about protocol, Congress president Rahul Gandhi on Monday said that Mr Modi calls himself 'Aam' but hugs only 'Khas' (Special) people.

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IMF sees India GDP growth rate better than China and at 7.4 per cent

22 Jan 2018 | 9:01 PM

New Delhi/Davos, Jan 22 (UNI) The International Monetary Fund (IMF) on Monday projected
that India's growth rate will be at around 7.

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