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Central Excise Duty on Tobacco and Tobacco Products: CBEC releases another set of FAQs on GST

By Taxscan Team -

The Central Board of Excise and Customs (CBEC) recently released another set of Frequently Asked Questions (FAQs) on Goods and Services Tax (GST).

The implementation of the Goods and Services Tax is considered as one of the biggest tax reform in the history of India. The Bill aims to bring uniformity in all the indirect taxes currently prevailing in India.

The 137 page document stated that “It would be a dual GST with the Centre and States simultaneously levying it on a common tax base. The GST to be levied by the Centre on intra-State supply of goods and / or services would be called the Central GST (CGST) and that to be levied by the States/ Union territory would be called the State GST (SGST)/ UTGST. Similarly, Integrated GST (IGST) will be levied and administered by Centre on every interstate supply of goods and services.”

“The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except the exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of CENVAT. While the location of the supplier and the recipient within the country is immaterial for the purpose of CGST, SGST would be chargeable only when the supplier and the recipient are both located within the State.” It said.

With regard to the question of taxability of Tobacco and tobacco products, it was clarified that the same would be subject to GST. In addition, the Centre would have the power to levy Central Excise duty on these products.

Read the full text of the FAQs below.