GST Council retains 28% tax and cess on tobacco, sin goods
The Union finance minister will decide on the date when the new tax rate for these items will be applicable. Currently, such products attract the highest GST rate of 28% plus compensation cess, central excise duty and national calamity contingent duty, taking the total indirect tax incidence to 53%. Average annual GST collection from tobacco products in the past five years amounted to ₹51,000 crore, along with additional education cess and surcharges from tobacco manufacturers totalling ₹27,660 crore.
