CBIC notifies change in the basis of charging GST Compensation Cess on Pan Masala and Tobaco products where declaration of retail selling price (RSP) is not required, as per recommedations of the GST Council. The retail sale price (RSP) based compnsation cess rates, last changed on 1st April 2023 have been switched back to Ad Valorem based rates, effective from 27th July, 2023, for such items where RSP is not required to be declared. Further, compensation cess rates for Pan Masala, Tobacco and allied products have been notified.
Also, CBIC has notified amendement in item 52B of it’s earlier Compensation Cess Rate Notification 5/2017 to include all utility vehicles by whatever name called provided they meet the following parameters:
i) Length is over 4000 mm,
ii) Engine capacity is more than 1500 cc, or
iii) Ground clearance is 170 mm or higher, measured when the vehicle is empty (un-laden condition).
CBIC Compensation Cess Rate Notification 3/2023 dated 26/07/2023: CBIC notifies Ad-valorem Tax on Pan Masala, Tobaco where RSP not Required; SUVs clarified
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Tobacco, Pan Masala GST Compensation Cess Rates RSP Based from 1st April 2023