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NCCD ON Tobacco Products in GST Regime- on MRP or Transaction Value, Central Excise

Issue Id: - 113669
Dated: 25-4-2018
By:- BHAGIRATH JYOTISHI
NCCD ON Tobacco Products in GST Regime- on MRP or Transaction Value

  • Contents

Presently Tobacco Products [ HSN CODE 2403 99 30] are covered under GST.

In Central Excise Regime, Excise Duty was Machine based on Tobacco Products under Section 3A of CEA.

NCCD is still applicable. Should we pay on Transaction Value or MRP Value after reducing abatement?

Notification No. 49/ 2008 -C.X. ( N.T.) has still entry of our HSN CODE 2403 99 30 but that speaks about items of First Schedule to the Central Excise Tariff Act' 1985. While First Schedule has been repealed, now Fourth Schedule is there.

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Showing Replies 1 to 8 of 8 Records

1 Dated: 25-4-2018
By:- KASTURI SETHI

Extract from FAQs

Is NCCD leviable on tobacco products from 1st July, 2017?

What will be the method of valuation for levy of NCCD?

• NCCD shall continue to be levied on tobacco and tobacco products at the rates as applicable prior to 1st July, 2017.

• Since NCCD is a duty of excise, the valuation for the purposes of charging NCCD shall be as per the Central Excise Law read with the Valuation Rules under Central Excise Law.

Q7. What will be status of Tobacco and Tobacco products under the GST regime?

Ans. Tobacco and tobacco products would be subject to GST. In addition, the Centre would have the power to levy Central Excise duty on these products.


2 Dated: 25-4-2018
By:- KASTURI SETHI

As MRP includes all taxes, you cannot charge over and above of MRP.


3 Dated: 26-4-2018
By:- BHAGIRATH JYOTISHI

Dear Sir,

We know about FAQ but my question starts thereafter.

Whether we pay NCCD on transaction value which is being charged for GST pupose or we should pay NCCD on MRP Valuation ( after reducing abatement)?

As the product is in Schedule IV and Notification No. 49/2008 CE ( NT) also have the entry of our product as abatment but it talks about FIRST SCHEDULE ITEMS WHICH has been repealed.

We need reply on which value NCCD is required to be paid today?


4 Dated: 26-4-2018
By:- KASTURI SETHI

Dear Querist, NCCD is payable on transaction value.


5 Dated: 26-4-2018
By:- KASTURI SETHI

For tobacco products, Petrol, Diesel etc. valuation has to be determined under Central Excise Act read with Valuation Rules. For valuation purpose, GST Act does not come into picture.

Notification No.49/2008-CX.(NT) is concerned with Central Excise Act . Goods mentioned in Fourth Schedule to Central Excise Tariff Act, 1985 attract CE duty as per Section 3 of Central Excise Act.


6 Dated: 9-5-2018
By:- rajkumar shukla

@kasturiji pl clarify my doubt.

Although notification under section 3A has been rescinded, section 4A is still in operation .so while tobacco is still under excise duty why can"t the MRP provision apply. Why transactional value when section 4A overrides section 4.?


7 Dated: 9-5-2018
By:- KASTURI SETHI

Sh.Shukla Ji, .Sir,. What I wanted to say the party cannot charge NCCD on MRP. NCCD is leviable on the value to be arrived at after allowing applicable abatement from MRP. Since the querist was asking Whether NCCD on MRP or transactional Value, I used the word 'transaction value'. Actually NCCD is on abated value. The word, 'Transactional' is superfluous here, especially when we talk of MRP. Main issue was whether NCCD on MRP or abated value. The querist should have phrased his query like this. 'Transactional' should not have come into the query itself. Both cannot co-exist.


8 Dated: 9-5-2018
By:- rajkumar shukla

Thanks.


1

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