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 Description GST Rate GST Cess
Tobacco and Tobacco Products
Unmanufactured tobacco (without lime tube) – bearing a brand name 28% 71%
Unmanufactured tobacco bearing a brand name 28% 65%
Tobacco refuse, bearing a brand name 28% 61%
Chewing tobacco (without lime tube) 28% 160%
Chewing tobacco (with lime tube) 28% 142%
Filter khaini 28% 160%
Jarda scented tobacco 28% 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 Code HSN Code Description GST Rate
2401 10 Tobacco, not stemmed or stripped: 28%
2401 10 10 Flue cured virginia tobacco 28%
2401 10 20 Sun cured country (natu) tobacco 28%
2401 10 30 Sun cured virginia tobacco 28%
2401 10 40 Burley tobacco 28%
2401 10 50 Tobacco for manufacture of biris, not stemmed 28%
2401 10 60 Tobacco for manufacture of chewing tobacco 28%
2401 10 70 Tobacco for manufacture of cigar and cheroot 28%
2401 10 80 Tobacco for manufacture of hookah tobacco 28%
2401 10 90 Other 28%
2401 20 Tobacco partly or wholly stemmed or stripped:
2401 20 10 Flue cured virginia tobacco 28%
2401 20 20 Sun cured country (natu) tobacco 28%
2401 20 30 Sun cured virginia tobacco 28%
2401 20 40 Burley tobacco 28%
2401 20 50 Tobacco for manufacture of biris 28%
2401 20 60 Tobacco for manufacture of chewing tobacco 28%
2401 20 70 Tobacco for manufacture of cigar and cheroot 28%
2401 20 80 Tobacco for manufacture of hookah tobacco 28%
2401 20 90 Other 28%
2401 30 00 Tobacco refuse 28%

GST Rate and HSN Code for Cigarettes

HSN Code HSN Item Description GST Rate
2402 CIGARS, CHEROOTS, CIGARILLOS AND CIGARETTES, OF TOBACCO OR OF TOBACCO SUBSTITUTES
2402 10 Cigars, cheroots and cigarillos, containing tobacco: 28%
2402 10 10 Cigar and cheroots 28%
2402 10 20 Cigarillos 28%
2402 20* Cigarettes, containing tobacco: 28%
2402 20 10 Other than filter cigarettes, of length not exceeding 65 millimetres 28%
2402 20 20 Other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 70 millimetres 28%
2402 20 30 Filter 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 40 Filter 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 millimetres 28%
2402 20 50 Filter 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 28%
2402 20 60 Filter 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 90 Other 28%
2402 90 Other: 28%
2402 90 10 Cigarettes of tobacco substitutes 28%
2402 90 20 Cigarillos of tobacco substitutes 28%
2402 90 90 Other 28%

GST Rate and HSN for Tobacco Products and Substitutes

HSN Code HSN Item Description GST Rate
2403 OTHER 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 11 Water pipe tobacco 28%
2403 11 10 Hookah or gudaku tobacco 28%
2403 11 90 Other 28%
2403 19 Other:
2403 19 10 Smoking mixtures for pipes and cigarettes other than paper rolled biris, manufactured 28%
2403 19 21 Smoking mixtures for pipes and cigarettes other than paper rolled biris, manufactured without the aid of machine 28%
2403 19 29 Other 28%
2403 19 90 Other 28%
Other:
2403 91 00 “Homogenised” or “reconstituted” tobacco 28%
2403 99 Other:
2403 99 10 Chewing tobacco 28%
2403 99 20 Preparations containing chewing tobacco 28%
2403 99 30 Jarda scented tobacco 28%
2403 99 40 Snuff 28%
2403 99 50 Preparations containing snuff 28%
2403 99 60 Tobacco extracts and essence 28%
2403 99 70 Cut-tobacco 28%
2403 99 90 Other 28%

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