GST Rate HSN Code for Tobacco and manufactured tobacco substitutes - Chapter24

Tobacco and its products have always been a subject of controversy in India. The government has imposed strict regulations on the sale and consumption of tobacco products. In this article, we will discuss the GST rate and HSN code for tobacco and manufactured tobacco substitutes.

GST Rate for Tobacco and manufactured tobacco substitutes

The GST rate for tobacco and manufactured tobacco substitutes is 28%. This rate applies to all types of tobacco products, including cigarettes, bidis, and cigars.

However, an additional compensation cess is levied on tobacco products. This cess is calculated based on the length or weight of the product. For example, for cigarettes that are less than 65 mm long, the cess is Rs. 485 per thousand cigarettes. For cigarettes that are longer than 65 mm, the cess is Rs. 792 per thousand cigarettes.

The GST rate and compensation cess for other tobacco products are as follows:

ProductGST RateCompensation CessBidis28%Rs. 4,170 per thousandCigars and cheroots28%12.5% or Rs. 4,170 per thousand, whichever is higherChewing tobacco65%Rs. 4.170 per kgGutkha and pan masala28%60% or Rs. 200 per kg, whichever is higherHookah tobacco28%Rs. 1,092 per kgSnuff65%Rs. 41.60 per kg

HSN Code for Tobacco and manufactured tobacco substitutes

The HSN code for tobacco and manufactured tobacco substitutes is 2401. This code covers all types of tobacco products, including unmanufactured tobacco, tobacco refuse, and tobacco extracts and essences.

The HSN code for specific tobacco products, such as cigars and cheroots or hookah tobacco, may vary. Here are the HSN codes for some common tobacco products:

1. Cigarettes - 2402

2. Bidis - 2403

3. Cigars, cheroots, and cigarillos - 2402 or 2403

4. Chewing tobacco - 2403

5. Gutkha and pan masala - 2106

6. Hookah tobacco - 2403

7. Snuff - 2403

Conclusion

In conclusion, the GST rate for tobacco and manufactured tobacco products in India is 28%, with an additional compensation cess for tobacco products. The HSN code for these products is 2401, with specific codes for different types of tobacco products. Business owners in the tobacco industry should keep these rates and codes in mind while filing their GST returns.