Chennai
How are tobacco products especially cigarettes, being treated under the GST? Will it affect business adversely? V Karunakaran, Vyasarpadi
Cigarettes are to be taxed at 28 per cent GST plus an additional GST cess at 5 per cent and another Rs 1.6 to 4.2 per cigarette. It seems as if the government is serious in its motive to discourage cigarette sales for a cancerfree India. Obviously, this would result in lesser sales and consequently affect the tobacco industry. But even they have realised that long ago, that going forward any government will do the same thing.
Not surprisingly, they have already diversified into other businesses. Nobody can fault the government for levying huge taxes on cigarettes. In a lighter vein, if the smokers continue with their habits, the government is bound to get more revenue!
D Arvind, Managing Partner, D Arvind & Associates, LLP
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