GST Rates and HSN Code for Cigars, Cheroots, Cigarillos, Cigarettes Tobacco

Are you confused about the GST rates and HSN code for cigars, cheroots, cigarillos, cigarettes tobacco? You're not alone. The Indian government has set different tax rates for different tobacco products, and it can be a challenge to keep track of them.

Let's start by breaking down the different types of tobacco products.

Cigars

Cigars are large, rolled tobacco leaves that are meant to be smoked. They are generally considered a luxury product and are often associated with celebrations and special occasions.

Under GST, cigars are taxed at 28% with no input tax credit. The HSN code for cigars is 2402 10.

Cheroots

Cheroots are similar to cigars, but they are shorter and thinner. They are often unfiltered and are popular in India and Southeast Asia.

Under GST, cheroots are also taxed at 28% with no input tax credit. The HSN code for cheroots is 2402 20.

Cigarillos

Cigarillos are small cigars that are meant to be smoked quickly. They are less expensive than cigars and are often sold in packs.

Under GST, cigarillos are taxed at a lower rate of 12% with no input tax credit. The HSN code for cigarillos is 2402 90 10.

Cigarettes

Cigarettes are the most common form of tobacco product and are made from finely cut tobacco leaves that are rolled in paper.

Under GST, cigarettes are taxed at a rate of 28% with an additional cess of 5%. Input tax credit is not available for cigarettes. The HSN code for cigarettes is 2402 20.

Tobacco

Tobacco is the raw material used to make all of these products. It is taxed differently based on the form in which it is sold.

Loose tobacco is taxed at a rate of 28% with no input tax credit. The HSN code for loose tobacco is 2401 10.

Tobacco products that are not covered by other categories are taxed at a rate of 28% with no input tax credit. The HSN code for these products is 2403.

Conclusion

Understanding the GST rates and HSN codes for tobacco products can be a challenge, but it's important for small and medium business owners and startup founders to stay on top of the latest regulations. We hope this article has been helpful in clarifying the rates and codes for cigars, cheroots, cigarillos, cigarettes tobacco.