Get ready to pay a 204 per cent cess on pan masala gutkha while consumers of aerated water will pay just 12 per cent cess and people buying large cars have to cough up 15 per cent cess from July 1.
The Centre and states have agreed to impose a cess on demerit and luxury goods under the Goods and Services Tax regime, over and above the peak tax rate of 28 per cent. While small petrol cars with the engine less than 1200 cc will attract 1 per cent cess, that with a diesel engine of less than 1500 cc will attract 3 per cent cess, according to the list of items for cess posted on CBEC website late night.
Large cars with the engine greater than 1500 cc and SUVs with length more than 4m and engine greater than 1500 cc will attract cess of 15 per cent. Motorcycles with the engine of more than 350 cc will attract 3 per cent cess, and an equal amount of levy will be applying to aircraft for personal use and yachts. The GST Council at its 14th meeting today finalized the 7 set of rules for the new regime and also decided on tax rates and cess on goods. With regard to pan masala the cess will be 60 per cent, while in tobacco the levy will vary from 71-204 per cent.
Also scented Zarda and filter Khaini will attract 160 per cent cess, for pan masala gutkha it would be 204 per cent. The cess would be levied over and above the peak GST rate of 28 per cent. Filter and non-filter cigarettes not exceeding 65 mm will attract cess of 5 per cent plus Rs 1,591 per 1000 sticks. Non-filter cigarettes exceeding 65 mm but not exceeding 70 mm will attract cess of 5 per cent plus Rs 2,876, that for filter cigarettes the levy is 5 per cent plus Rs 2,126 per thousand sticks. For cigars, a hefty levy of 21 per cent or Rs 4,170 per 1000 sticks, whichever is higher, would be levied. Branded gutkha will be slapped with a cess of 72 per cent while smoking mixtures for pipes and cigarettes will attract a levy 290 per cent. Besides, a clean energy cess will be levied on coal, lignite and peat production at the rate of Rs 400 per tonne.
Finance Minister Arun Jaitley earlier briefing reporters had said that the key feature of today's rate decision has been that "tax rate under GST will not go up for any of the commodities. There is no increase. On many commodities, there is a reduction particularly because the cascading effect of the tax on tax is gone."