My client deals in trading & manufacturing of loose bidi (HSN code 1404) and pay GST @ 28%.
I would like to know that;

1. Is the dealer liable for cess?

2. If he is liable for cess, then whats the rate of cess?

Reply

HSN code 1404—Bidi wrapper leaves (tendu)—18% GST rate instead of 28% without attracting any compensation cess.

HSN code 2403—Other manufactured tobacco and manufactured tobacco substitute; "homogenized" or "reconstituted" tobacco; tobacco extracts and essences [including biris]—28% GST rate and 11% compensation cess as other smoking tobacco not bearing a brand name.