Pan masala gutkha to attract 204% cess, SUVs 15%

Get ready to pay a 204 % cess on pan masala gutkha while consumers of aerated water will pay just 12 % cess and people buying large cars have to cough up 15 % cess from July 1.

The Centre 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 28 %.

While small petrol cars with engine less than 1200 cc will attract 1 % cess, that with a diesel engine of less than 1500 cc will attract 3 % cess, according to the list of items for cess posted on CBEC website late night.

Large cars with engine greater than 1500 cc and SUVs with length more than 4m and engine greater than 1500 cc will attract cess of 15 %.

Motorcycles with engine of more than 350 cc will attract 3 % cess and an equal amount of levy will be applying to aircrafts for personal use and yachts.

The GST Council at its 14th meeting today finalised the 7 set of rules for the new regime and also decided on tax rates and cess on goods.

With regard to pan masala the cess will be 60 %, while in tobacco the levy will vary 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 exceeding 65 mm will attract cess of 5 % plus Rs 1,591 per 1000 sticks.

Non-filter cigarettes exceeding 65 mm but 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 will not go up for any of the commodities. There is no increase. On many commodities there is a reduction particularly because the cascading effect of tax on tax is gone."