Tax Structure

Goods and Services Tax (GST) was implemented in the country with effect from 1st July, 2017. GST has replaced more than a dozen Central and State levies like excise duty, service tax and local sales tax or VAT etc.

In the case of Cigarettes, on which excise duty, VAT and other State level taxes were being levied previously, the highest GST rate of 28% is now being levied in addition to GST Compensation Cess and National Calamity Contingency Duty (NCCD).

The tax rates applicable on Cigarettes under the GST regime are as follows:

Type/ Length of Cigarettes (mm) GST Rate GST Compensation
Cess Rate
NCCD 
Plains
Upto 65 28% 5% + Rs. 2076 per thousand Rs. 90 per
thousand
>65 to 70 28% 5% + Rs. 3668 per thousand Rs. 145 per thousand
Filters
Upto 65 28% 5% + Rs. 2076 per thousand Rs. 90 per
thousand
>65 to 70 28% 5% + Rs. 2747 per thousand Rs. 90
per thousand
>70 to 75 28% 5% + Rs. 3668 per thousand Rs. 145 per thousand  
Others (>75 mm) 28% 36% + Rs. 4170 per thousand Rs. 235 per thousand