The cess of tobacco products will be increased to compensate for the reduction of GST

New delhi date. October 16, 2019, Wednesday

The government, concerned about falling GST tariffs, will increase the cess on some other items, including tobacco products, to compensate for this decline.

According to circles associated with the government's exercise, GST has increased by 5 per cent during April to August 1. Compared to the central government, the GST collection of states has declined.

Thus, the government, concerned about the reduction of tax revenues, has taken the initiative to deal with this adversity, which was discussed at a recent meeting of the committee comprising secretaries on how to increase the tax.

Following the conclusion of the deliberations, the Committee will introduce a Cabinet to increase the rate of cess / tax on certain products, including tobacco, as well as coal, and after this the decision will be taken. In addition, rates on goods with inverted duty structures are likely to change.

It should be noted here that in the next financial year, the GST cess is likely to be three to four times. The central government will have to pay for this reduction. According to one estimate, the central government will pay Rs. 1.5 lakh crore will be required.