Get ready to pay a 204% cess on pan masala gutkha while consumers of aerated water will pay only 12% cess and individuals purchasing large cars need to cough up 15% cess from July 1.
The Center and states have agreed to impose cess on demerit and luxury goods under the Goods and Services Tax regime, over and above the peak tax rate of of 28%.
While small petrol cars with motor under 1200 cc will attract in 1% cess, that with a diesel motor of under 1500 cc will attract 3% cess, as per the list of items for cess posted on CBEC site late night.
Large cars with motor greater than 1500 cc and SUVs with length more than 4m and engine greater than 1500 cc will attract cess of 15%.
Motorcycles with motor of more than 350 cc will attract 3% cess and an equal amount of levy will apply to air ships for personal use and yachts.
The GST Council at its fourteenth meeting today finished the 7 set of standards for the new regime and furthermore decided on tax rates and cess on goods.
With regard to pan masala the cess will be 60%, while in tobacco the levy will shift from 71-204%.
Also scented Zarda and filter Khaini will attract 160% cess, for pan masala gutkha it would be 204%.
The cess would be levied over and above the peak GST rate of 28%.
Filter and non-filter cigarettes not surpassing 65 mm will attract cess of 5% plus to Rs. 1,591 for each 1000 sticks.
Non-filter cigarettes exceeding 65 mm yet not exceeding 70 mm will attract cess of 5% plus Rs. 2,876, that for filter cigarettes the levy is 5% plus Rs. 2,126 per thousand sticks.
For cigars, a hefty levy of 21% or Rs. 4,170 per 1000 sticks, whichever is higher, would be levied.
Branded gutkha will be slapped with a cess of 72%, while smoking mixtures for pipes and cigarettes will attract a levy 290%.
Besides, a clean energy cess will be levied on coal, lignite and peat production at the rate of Rs. 400 per tonne.
Finance Minister Arun Jaitley earlier briefing reporters had said that the key feature of today’s rate decision has been that “tax rate under GST won’t go up for any of the commodities. There is no increase. On numerous commodities there is a reduction particularly because the cascading effect of tax on tax is gone.”