Cigarette puff will be heavy on pocket, now more money will have to be spent on the use of these things

GST on Sin Goods: Finance Minister Nirmala Sitharaman announced the ‘Next Generation’ GST Reforms on Wednesday night. This has brought great relief to the common man of the country. However, people using pan masala, cigarette, gutkha will now have to spend more money than before.

Let us know that under GST 2.0, two tax slabs of 5 percent and 18 percent have been approved by changing tax structure. Along with this, a decree has also been issued to impose 40 percent tax on luxury goods and sin goods. The category of this Sin Goods consists of cigarettes, tobacco, gutkha, paan masala and other products made from tobacco. At the same time, GST will be charged at the rate of 40 percent on luxury cars, sugar beverages and fast food.

Companies cess is being finished

The Finance Ministry said, “Since it has been decided to abolish the compensation cess, it is now being merged into GST so that the effect of tax is maintained mostly on the goods.” Explain that the compensation cess is a type of tax, which are imposed on luxury and syN items. It was started in 2017 so that when the GST system is implemented, then the revenue of the states will be damaged.

In order to compensate for this loss, this tax was levied. Earlier there was a plan to keep it implemented only by 2022, but after the Korona epidemic, it was decided to keep it in force till 2026. Actually, the central government had taken a loan of Rs 2.69 lakh crore to help the states during Kovid-19. To repay this debt, the term of the compensation cess was increased.

After the new GST rate, harmful products like pan masala, cigarette, gutkha and chewing tobacco will be charged 40 percent GST, which will now be leveled on retail prices instead of X-factory prices. That is, if a cigarette package was first available for Rs 256, now they will now be available for Rs 280 with a new tax rate. That is, you have to pay more than 24 rupees more directly.

Things under 40 percent GST slab-

• Paan masala
• Cigarette
• Gutkha
• Chewing tobacco
• Unrewdrined tobacco; Tobacco waste [तंबाकू के पत्तों के अलावा]
• Cigarillo
• Aezing sugary drinks/soft drinks
• Carbonated drinks
• Carbonated drinks
• Online gambling or gaming
• Caffeinated drinks

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