Gst on bidis and cigarettes: The GST Council has approved major changes in GST rates in the meeting held on 3-4 September. Under this, the prices of tobacco products like cigarette and gutkha are going to increase. However, there will be some fall in the prices of bidi.

Earlier GST on Bidi was 28 percent, which has now been reduced to 18 percent. At the same time, GST has been reduced from 18 percent to 5 percent on the leopard used in making bidi. In contrast, GST is currently charged at the rate of 28 percent on cigarettes and other products made from tobacco, which will now be increased to 40 percent. Now the question comes, why GST has been reduced on bidi?

Many people related to bidi industry

Actually, its purpose may be to save domestic beedi industries, due to which the livelihood of more than 7 million people is connected. This move of the government of course made people think whether only cigarettes harm health, bidi is a loss, whether some people are looking at it by linking it with the upcoming assembly elections in Bihar, giving it the form of politics.

People are also taking jokes on this saying that the cut in GST on bidi shows that the government is really working for the general public. It is also being concerned that Bidi is more harmful than cigarettes. It is consumed by the people of the underprivileged section of the society, due to which they are vulnerable to serious diseases.

All of them had demanded to reduce GST on bidi

Earlier, several social organizations including RSS had urged the government to reduce the rate of 28 percent GST on bidis. His argument was that this would help the workers.

Swadeshi Jagran Manch associated with RSS wrote to Finance Minister Nirmala Sitharaman that 28 percent GST has affected employment in the registered area of ​​bidi construction. The forum said that the laborers working in unregistered bidi production units are also facing difficulties. Swadeshi Jagran Manch had said that earlier the government used to impose a small amount of excise duty on the bidi. Many states did not even impose tax on the sale of bidi keeping in mind the interests of bidi workers.

Increased period of compensation cess

The government has said that changes in GST rates will be applicable from September 22, but cigarette, pan masala, gutkha, bidi and other tobacco products will continue to be sold at the same rate till the loan is compensated for the government. Let us know that after the CORONA epidemic, the government had decided to keep the compensation cess implemented by 2026. This is a tax imposed on luxury and syN items. 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.

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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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