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5 Maharashtra MPs want GST lowered on bidi
KT NEWS SERVICE. Dated: 9/20/2020 12:49:54 PM
NEW DELHI, Sep 19: Three Shiv Sena MPs and two BJP MPs from Maharashtra on Saturday pressed for lowering the highest rate of 28% GST (Goods and Services Tax) imposed on the Bidi and wanting it brought under the list of demerit goods.
They raised the issue in the Lok Sabha through a question for written reply. They are: Hemant Sriram Patil, Dhairyasheel Mane and Dr Shrikant Shinde from Shiv Sena and Dr Sujay Vikhe Patil and Unmesh Bhaiyyasaheb Patel from BJP.
In a written reply, Minister of State for Finance Anurag Thakur explained that Bidi attracts the highest rate of 28%, just as other tobacco products and at present it does not attract compensation cess.
He said the GST recovered from suppliers and manufacturers of tobacco products in the last financial year of 2019-20 amounted to Rs 53,540 crore as against Rs 1910 crore collected through excise duty and National Calamity Contingent duty (NCCD). He said NCCD on tobacco products was increased in the 2020-21 budget.
As regards Maharashtra, the miniser said the GST, including compensation cess, paid by suppliers engaged in supply of tobacco products in Maharashtra is estimated to be Rs 5035 crore in 2019-20.