UT Admn withdraws exemption from CST on tobacco

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Chandigarh, Oct 24 (UNI) In order to bring parity with local sales, the Chandigarh administration has withdrawn the exemption from Central Sales Tax (CST) on inter-state transactions of tobacco and its products.

The government of India had brought one of the Additional Excise Duty (AED) item that is 'tobacco and its products' under VAT in the recent past.

The item has thus been brought in the list of taxable goods of the Value Added Tax schedules in Chandigarh on May 22, 2007.

Tobacco and its products were not taxable under the CST as the erstwhile state of Punjab, vide its notification dated December 12, 1957 issued under Section 8(5) of the CST Act, had exempted these items from the levy of CST on interstate transactions.

Thereafter, with the coming into existence of the Union Territory of Chandigarh with effect from November 1, 1966, tobacco and its products remained tax-free under the CST Act as the provisions of Sales Tax Law were made applicable to Chandigarh, by virtue of provisions of the Punjab Re-organization Act.


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