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, Basic Excise Duty (BED) and National Calamity Contingent Duty (NCCD).
The current tax rates applicable on Cigarettes are as follows:
| Type/ Length of Cigarettes (mm) | GST Rate | GST Compensation Cess Rate |
BED | NCCD* | |
| Plains | |||||
| Upto 65 | 28% | 5% + Rs. 2076 per thousand | Rs. 5 per thousand | Rs. 230 per thousand | |
| >65 to 70 | 28% | 5% + Rs. 3668 per thousand | Rs. 5 per thousand | Rs. 290 per thousand | |
| Filters | |||||
| Upto 65 | 28% | 5% + Rs. 2076 per thousand | Rs. 5 per thousand | Rs. 510 per thousand | |
| >65 to 70 | 28% | 5% + Rs. 2747 per thousand | Rs. 5 per thousand | Rs. 510 per thousand | |
| >70 to 75 | 28% | 5% + Rs. 3668 per thousand | Rs. 5 per thousand | Rs. 630 per thousand | |
| Others (>75 mm) | 28% | 36% + Rs. 4170 per thousand | Rs. 10 per thousand | Rs. 850 per thousand | |
*NCCD rate revised w.e.f. 2nd February, 2023
