Fitment panel to examine compensation cess structure for pan masala

To review the feasibility of MRP-linked compensation cess rates

The fitment panel, comprising revenue officials of both the Centre and states, will examine the tax structure for the compensation cess on evasion-prone commodities, such as paan masala and assorted tobacco products, and whether differential tax rates may well be rationalised, a government official told Business Standard.
 

The move follows a report by a Group of Ministers (GoM) proposing a change to the cess component of the tax, which is to be linked with the maximum retail price (MRP) at which these products are sold to consumers.
 

 The Goods and Services Tax (GST) Council, at its February meeting, approved a