Law Enforcement Recovers Huge Some of Money From Tobacco Manufacturers.
Shambhavi Sharma / 2021-05-10 05:25:19
In July 2017, India introduced the goods and services tax (GST) regime as a one-in-all indirect tax system, combining all current indirect taxes into a single consumption-based tax on a wide variety of product/service supplies. The GST tax rate is divided into five slabs: 0%, 5%, 12%, 18%, and 28%, with different rates for different products and services.
Tobacco products are one of India's most heavily taxed goods and a significant source of revenue for the government. Let's look at a GST report for tobacco products. Tobacco products, such as chewing tobacco, khaini, pan masala, jarda, cigarettes, and other tobacco products, are subject to the maximum GST slab rate of 28 percent.
Tobacco products (except tobacco leaves) are subject to a 28 percent GST.
Tobacco leaves are subject to a 5% GST under reverse fee, which means the recipient of the supply pays the tax directly to the government. The Goods and Services Tax (GST) According to notification 4/2017 Central Tax (Rate) under ‘Reverse fee,' the tax rate for tobacco leaves purchased at tobacco auction platforms or straight from cultivators, which are made by cultivators themselves, is 5%. Tobacco goods are subject to GST, GST cess, and excise duty in addition to GST.
DGGI's Recovery from Tobacco Manufacturers
As part of a crackdown on large-scale tax evasion, the Directorate General of GST Intelligence (DGGI) has recovered 74.86 crore from a big tobacco manufacturer in Maharashtra's Ahmednagar district as per the Reports that has been surfaced.
According to a DGGI release, searches were conducted in April at various Sangamner-related producer and supplier locations based on specific data.
Unprocessed tobacco is said to be subject to the highest rate of the Goods and Services Tax (GST), which is approximately equal to the value of the goods, and that there is potential for large-scale evasion in the industry. Remanufactured tobacco is subject to a 28% GST plus a 71% reimbursement Cess.
According to the release, the company cleared significant amounts of remanufactured tobacco without paying the GST. The firm was found to have cleared significant amounts of remanufactured tobacco without paying the GST, according to an inquiry. According to the inquiry, the firm was also evading the payment of GST (5 percent GST) on tobacco leaves purchased directly from farmers.
According to the company, the brand is well-known across the world, and its products are consumed in large quantities not only in Maharashtra but also in other states. According to the release, the company was able to pay 74.86 crore in cash against its liabilities in April, along with a partial payment of interest.
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