GST-Rate-and-Cess-for-Tobacco-and-Cigarettes

GST Rate and Cess for Tobacco and Cigarettes

GST Rate and Cess for Tobacco and Cigarettes

Tobacco and tobacco products are estimated to generate around 18,000 crores of revenue to the Government and nearly 5000 crores by way of foreign change. Though the prominence of the tobacco industry has steadily declined over the years, the tobacco industry continues to be a major revenue earner for the Government by way of taxes. In this article, we look at the GST rate applicable for tobacco along with HSN code and GST cess.

GST Rate for Tobacco

GST rate for all types of tobacco products is 28%, except for tobacco leaves. GST rate for tobacco leaves is 5% under reverse charge. As GST for tobacco leaves is applicable under reverse charge, the recipient of the goods is required to pay the GST applicable directly to the Government. For example, if a tobacco manufacturing unit purchases tobacco leaves from a farmer, the tobacco manufacturing unit would be required to pay GST at the rate of 5% directly to the Government.

GST Cess for Tobacco Products

Tobacco products is one of the items that attract the maximum amount of GST cess. The GST cess rate for tobacco products range from 11% to 290%. Hence, its important for all persons supplying tobacco and tobacco products to be well aware of GST Cess rules and regulations.

GST Rate and Cess for PAN, Gutkha, PAN, Chewing Tobacco and Tobacco Products

Item DescriptionGST RateGST Cess
Tobacco and Tobacco Products
Unmanufactured tobacco (without lime tube) – bearing a brand name28%71%
Unmanufactured tobacco bearing a brand name28%65%
Tobacco refuse, bearing a brand name28%61%
Chewing tobacco (without lime tube)28%160%
Chewing tobacco (with lime tube)28%142%
Filter khaini28%160%
Jarda scented tobacco28%160%
Pan masala containing tobacco ‘Gutkha’28%204%

GST Rate and GST Cess for Cigarettes

The GST rate and Cess for cigarettes is as below:

GST Rate and GST Cess for CigarettesGST Rate and GST Cess for Cigarettes
GST Rate and GST Cess for Cigarettes

GST Rate and Cess for Other Tobacco Products

The GST rate and GST cess for other tobacco products like hookah, chewing tobacco, snuff and gutkha are as follows:

Other Tobacco Products
Other Tobacco Products

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HSN Code for Tobacco

Tobacco and tobacco products fall under Chapter 24 of the HSN Code. HSN Code is an internationally accepted system for classifying goods in the course of international trade. In the case of tobacco products, the following HSN code must be mentioned on the GST invoice based on the type of product sold:

GST Rate and HSN Code for Unmanufactured Tobacco

HSN CodeHSN Code DescriptionGST Rate
2401 10Tobacco, not stemmed or stripped:28%
2401 10 10Flue cured virginia tobacco28%
2401 10 20Sun cured country (natu) tobacco28%
2401 10 30Sun cured virginia tobacco28%
2401 10 40Burley tobacco28%
2401 10 50Tobacco for manufacture of biris, not stemmed28%
2401 10 60Tobacco for manufacture of chewing tobacco28%
2401 10 70Tobacco for manufacture of cigar and cheroot28%
2401 10 80Tobacco for manufacture of hookah tobacco28%
2401 10 90Other28%
2401 20Tobacco partly or wholly stemmed or stripped:
2401 20 10Flue cured virginia tobacco28%
2401 20 20Sun cured country (natu) tobacco28%
2401 20 30Sun cured virginia tobacco28%
2401 20 40Burley tobacco28%
2401 20 50Tobacco for manufacture of biris28%
2401 20 60Tobacco for manufacture of chewing tobacco28%
2401 20 70Tobacco for manufacture of cigar and cheroot28%
2401 20 80Tobacco for manufacture of hookah tobacco28%
2401 20 90Other28%
2401 30 00Tobacco refuse28%

GST Rate and HSN Code for Cigarettes

HSN CodeHSN Item DescriptionGST Rate
2402CIGARS, CHEROOTS, CIGARILLOS AND CIGARETTES, OF TOBACCO OR OF TOBACCO SUBSTITUTES
2402 10Cigars, cheroots and cigarillos, containing tobacco:28%
2402 10 10Cigar and cheroots28%
2402 10 20Cigarillos28%
2402 20*Cigarettes, containing tobacco:28%
2402 20 10Other than filter cigarettes, of length not exceeding 65 millimetres28%
2402 20 20Other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 70 millimetres28%
2402 20 30Filter cigarettes of length (including the length of Free the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetres.28%
2402 20 40Filter cigarettes of length (including the length of Free the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetres not exceeding millimetres28%
2402 20 50Filter cigarettes of length (including the length of Free the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 75 millimetres but not exceeding 85 millimetres28%
2402 20 60Filter cigarettes of length (including the length of Free the filter, the length of filter being 11 millimetres or its actual length, whichever is more)
exceeding 75 millimetres but not exceeding 85
millimetres
2402 20 90Other28%
2402 90Other:28%
2402 90 10Cigarettes of tobacco substitutes28%
2402 90 20Cigarillos of tobacco substitutes28%
2402 90 90Other28%

GST Rate and HSN for Tobacco Products and Substitutes

HSN CodeHSN Item DescriptionGST Rate
2403OTHER MANUFACTURE TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES; HOMOGENISED OR RECONSTITUTED TOBACCO; TOBACCO EXTRACTS AND ESSENCES
Smoking tobacco, whether or not containing tobacco substitutes in any proportion:
2403 11Water pipe tobacco28%
2403 11 10Hookah or gudaku tobacco28%
2403 11 90Other28%
2403 19Other:
2403 19 10Smoking mixtures for pipes and cigarettes other than paper rolled biris, manufactured28%
2403 19 21Smoking mixtures for pipes and cigarettes other than paper rolled biris, manufactured without the aid of machine28%
2403 19 29Other28%
2403 19 90Other28%
Other:
2403 91 00“Homogenised” or “reconstituted” tobacco28%
2403 99Other:
2403 99 10Chewing tobacco28%
2403 99 20Preparations containing chewing tobacco28%
2403 99 30Jarda scented tobacco28%
2403 99 40Snuff28%
2403 99 50Preparations containing snuff28%
2403 99 60Tobacco extracts and essence28%
2403 99 70Cut-tobacco28%
2403 99 90Other28%

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