Chapter 24 - Tobacco and manufactured tobacco substitutes

Notes

This Chapter does not cover medicinal cigarettes (Chapter 30).

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
2401	Tobacco leaves	5%	I	109
2402	Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes	40%	V	14
2403	Other manufactured tobacco and manufactured tobacco substitutes; "homogenised" or "reconstituted" tobacco; tobacco extracts and essences [including biris]	40%	V	15
2401	Unmanufactured tobacco; tobacco refuse [other than tobacco leaves]	40%	V	13

Other Exemptions

Description	Notification
Exemption from Registration - Small Taxpayers having turnover below threshold limit	Notification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old Scheme	Notification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New Scheme	Notification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST @6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.	Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.	Notification No. 3/2017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund	Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSD	Notification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.	Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to Exporter	Notification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutions	Notification No. 45/2017-C.T. (Rate), dated 14-11-2017

Departmental Clarifications / Case Law

Sun-cured "Tobacco leaves" known in Kerala as "Kannipukayila" comes under the HSN Code 2401.classifiable under Serial No. 109 of the Schedule-I of Notification No. 1/2017-Central Tax (Rate) In Re: Suresh G 2019 (23) G.S.T.L. 483 (A.A.R. - GST)

Tobacco Leaves & Unmanufactured Tobacco

both tobacco leaves and unmanufactured tobacco are covered under CTH 2401 but tobacco leaves are under Serial No. 109 of the Schedule-I of Notification No. 1/2017-Central Tax (Rate) attracting GST @ 5% whereas, unmanufactured tobacco is covered under Sr. No. 13 of Schedule IV attracting CST @ 28% In Re: Pragathi Enterprise 2018 (19) G.S.T.L. 327 (A.A.R. - GST).

Gudakhu

Assessee manufacturing gudakhu in paste form which generally used as tooth paste consisting of tobacco. molasses, lime, red soil, water etc. - classifiable under residual Tariff Item '2403 99 90 - other'- In Re: Prabhat Gudakhu Factory 2019 (23) G.S.T.L. 316 (A.A.R. - GST)

Hand Made Branded Biri

All bins attract 28% GST. In addition. handmade bills attract NCCD of Re. 1 per thousand and machine made bids attract NCCD of Rs. 2 per thousand. C. B./. & C. Circular F. No. 332/212017- 7RU, dated 7-12-2017

NCCD

NCCD shall continue to be levied on tobacco and tobacco products at the rates as applicable poor 1st July. 2017. <br>Since NCCD is a duty of excise, valuation for the purposes of charging NCCD shall be as per the Central Excise Law read with the Valuation Rules under Central Excise Law.

Tobacco leaves

Tobacco leaves falling under heading 2401 attracts 5% GST on reverse charge basis in respect of supply by an agriculturist. Tobacco leaves means, leaves of tobacco as such or broken tobacco leaves or tobacco leaves stems. C.B.I. & C Circular F. No. 332/2/2017-TRU, dated 7-12-2017