NCCD applicability

[Ramesh Agarwal]

What will be status of NCCD in the GST regime. Is NCCD chargeable on all goods of Chapter 24 (i.e. tobacco products like Biri, Gurakhoo etc)

[KASTURI SETHI]

NCCD is applicable as it was before 1.7.17. See clarification issued on 24.7.17 under the title, "NEWS" in TMI. Central Excise Valuation Rules will be applicable.

[Himansu Sekhar]

Recent FAQ released has clarified that nccd will be levied on biri

[SR AGRAWAL]

Respected Experts,

NCCD is chargeable on Tobacco products as suggested and as per FAQs. Now as regards Valuation, the Central Excise Act, 1944 stands repealed w.e.f. 01.07.2017, the date from which CGST Act, 2017 comes into force as per Section 174 of the Act. As such Neither Section 4 nor Section 4A is in force now.

Tobacco products were notified under erstwhile Section 4A of the Central Excise Act, 1944 and value was to be determined as per Maximum Retail Price with abatement of only 20% of MRP.

Now the GST is required to be paid on transaction Value, how to calculate the measure of NCCD. Whether it will be charged on MRP basis or on Transaction Value?

Kindly Advise.

Thanks,

S R AGRAWAL.

 

[KASTURI SETHI]

Old valuation method will continue. Whenever any act is repealed, there is always Saving Section for safeguarding revenue. You can continue with old practice on the strength of Board's clarification.

[SR AGRAWAL]

Respected Mr. Harish Lath,

Sir,

Undoubtedly, there is a Saving clause in repeal Act, but this is applicable only for the act or omission during the period when the Act was in force and not thereafter. It is clearly written in saving clause that the repeal will not affect any thing done before such repeal.

Kindly reconsider and advise.

Thanks,

S R AGRAWAL.

How to calculate NCCD on JARDA in the GST regime ?

AI Summary

NCCD applicability to tobacco continues, while valuation under GST-MRP versus transaction value-remains contested among practitioners.
NCCD continues to be chargeable on tobacco products after GST rollout, but a central dispute exists over valuation: whether NCCD should be measured on the historical MRP based valuation under Central Excise Valuation Rules or on the GST transaction value. Board clarifications and FAQs support applying the old valuation practice, yet some practitioners argue the repeal and the saving clause do not preserve pre repeal valuation for post repeal transactions.