Last year, the government had taken many steps regarding economic reform. Some rules will be implemented this year also. Regarding this, the government has decided to implement new GST rates on tobacco products from February 10.
GST will be 18% on beedis and 40% on tobacco products.
18% GST rate will be applied on beedis and 40% GST rate on pan masala as well as other tobacco products. If understood in simple language, the government has changed the rules related to tobacco and beedi. Earlier, these products were taxed at different rates, which caused a lot of confusion and confusion.
Companies are taking advantage of the current system
Earlier, 5 to 12 percent GST was levied on beedis, whereas 28 percent tax was imposed on machine made beedis. At the same time, along with 28 percent GST, additional cess was also levied on products like pan masala and tobacco, due to which the total tax sometimes reached 50 to 60 percent. Taking advantage of this system, many companies did not pay correct taxes and the government suffered losses.
Now strict action will be taken by the government
Now the government has made this entire system easier and stricter. New rules will be implemented from February 1. Under this, 18 percent GST will be imposed directly on beedis and 40 percent GST will be imposed on pan masala and other tobacco products.
Same rule will apply in all states
Now the same rule will be applicable in all the states, which will stop tax evasion and the government will get the right revenue. Also, due to the expensiveness of these products, it is expected to have a positive impact on people’s health. It is clear that the government believes that this will not only curb tobacco consumption but the money received from this will also strengthen health related schemes.