{"id":16092,"date":"2025-10-27T11:30:27","date_gmt":"2025-10-27T06:00:27","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=16092"},"modified":"2025-10-27T11:30:27","modified_gmt":"2025-10-27T06:00:27","slug":"no-new-gst-on-tobacco-central-levy-planned","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/no-new-gst-on-tobacco-central-levy-planned\/","title":{"rendered":"No New GST on Tobacco ; Centre Plans Extra Levy to Hold Tax"},"content":{"rendered":"
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The government has clarified that no additional Goods and Services Tax (GST) will be imposed on tobacco products, but the overall tax incidence will remain the same through the introduction of an additional central levy.<\/p>\n

This move comes as the GST Compensation Cess regime nears its end, prompting the Centre to identify new ways to maintain its revenue from sin goods such as tobacco and pan masala.<\/p>\n

No Change in GST Rate, But Tax Structure to Adjust<\/h2>\n

A senior government official told Moneycontrol<\/em> that there are no plans to increase GST rates on tobacco-related items. However, the Centre intends to preserve the effective tax incidence by adding a separate central levy outside the GST framework.<\/p>\n

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\u201cThere will be no additional GST on tobacco and related items. The tax incidence will be kept the same using an additional central tax levy,\u201d the official said.<\/p>\n

Also Read<\/strong>: PB Fintech\u2019s Alok Bansal Calls India\u2019s Insurance \u2018Subpar\u2019<\/a><\/em><\/p>\n<\/blockquote>\n

Current Tax Structure on Tobacco and Pan Masala<\/h2>\n

At present, tobacco products attract the highest GST slab of 28%, along with a compensation cess that varies across categories.<\/p>\n