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 Union Budget 2019-20, announced on July 5, 2019, imposed Basic Excise Duty (BED) on Cigarettes, which was earlier ‘Nil’.
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. 90 per thousand | |
| >65 to 70 | 28% | 5% + Rs. 3668 per thousand | Rs. 5 per thousand | Rs. 145 per thousand | |
| Filters | |||||
| Upto 65 | 28% | 5% + Rs. 2076 per thousand | Rs. 5 per thousand | Rs. 90 per thousand | |
| >65 to 70 | 28% | 5% + Rs. 2747 per thousand | Rs. 5 per thousand | Rs. 90 per thousand | |
| >70 to 75 | 28% | 5% + Rs. 3668 per thousand | Rs. 5 per thousand | Rs. 145 per thousand | |
| Others (>75 mm) | 28% | 36% + Rs. 4170 per thousand | Rs. 10 per thousand | Rs. 235 per thousand | |
