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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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Home Ministry issues security advisory for Diwali

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17 Oct 2017 | 9:59 PM
12 candidates file nominations on second day

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Shimla, Oct 17 (UNI) As many as 12 candidates in different parts of the State filed nominations on second day of filing of nominations to Vidhan Sabha Election-2017.

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17 Oct 2017 | 11:13 PM
Air pollution level enters red zone, EPCA takes preventive measures

Air pollution level enters red zone, EPCA takes preventive measures

New Delhi, Oct 17 (UNI) With the Delhi air quality entering the red zone, the polluting Badarpur Power Plant has been shut down and use of diesel generators has been restricted as part of the Graded Response Action Plan (GRAP).

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17 Oct 2017 | 11:35 PM
LG fires fresh salvo at Kejriwal

LG fires fresh salvo at Kejriwal

New Delhi, Oct 17 (UNI) The war of words or rather letters, continued literally, between Lieutenant Governor Anil Baijal and Delhi Chief Minister Arvind Kejriwal on Tuesday, with the fresh salvo fired by Mr Baijal, in response to Mr Kejriwal's allegation of 'deteriorating' law and order in the national capital.

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17 Oct 2017 | 9:15 PM
Punjab CM releases Rs 211 cr, hands out  Rs 58 cr cheques to ULSBs for development works

Punjab CM releases Rs 211 cr, hands out Rs 58 cr cheques to ULSBs for development works

Chandigarh, Oct 17 (UNI) Giving a major boost to the development work in the state, Punjab Chief Minister Captain Amarinder Singh on Tuesday released a sum of Rs.

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17 Oct 2017 | 10:30 PM
Delhi Metro sets up India’s first ever elevated stabling yard for metro trains at Jasola Vihar

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New Delhi, Oct 17 (UNI) Delhi Metro has set up India’s first ever elevated stabling yard for metro trains at Jasola Vihar.

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17 Oct 2017 | 9:48 PM
RSS leader murder: Rajnath takes up matter with Punjab CM

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Ferozepur, Oct 17 (UNI) Union Home Minister Rajnath Singh has taken up the matter of the brutal killing of RSS leader in Ludhiana Mr Ravinder Gosain with Punjab Chief Minister Capt Amarinder Singh.

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17 Oct 2017 | 10:11 PM

Man die in LPG gas leak fire in HP

17 Oct 2017 | 11:36 PM

Shimla, Oct 17(UNI) A major fire broke out near Account General (AG) Office here on Tuesday evening, gutting down a food eatery on the mall road as the flames trigger from an LPG cylinder which took one live beside causing massive loss to the property, police sources said.

Hungary coach Storck leaves after World Cup qualification failure

18 Oct 2017 | 1:10 AM

BUDAPEST, Oct 17 (Reuters) Hungary have parted company with national team coach Bernd Storck by mutual consent after he failed to guide them to next year's World Cup finals, the Hungarian Football Association (HFA) said on Tuesday.

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