GST Council meet: Stricter tax regime for tobacco items likely in phases

No consensus yet on retail sale price-based levy on some items

The government’s decision to levy tax on the retail sale prices of some of the evasion-prone commodities, such as pan masala and tobacco products, may have hit a roadblock. 

However, a tighter regime proposed to plug the revenue leakage in these commodities could be implemented in a phased manner.

A retail sale price-based levy would mean that manufacturers would have to pay the cess on the final retail price of these products at the time it crosses the factory gate.

The fitment committee comprises revenue officials from states, and the Centre said it had received representations regarding challenges faced in