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

[BHAGIRATH JYOTISHI]

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 While First Schedule has been repealed, now Fourth Schedule is there.

AI Summary

NCCD valuation: levy on assessable value after prescribed abatement from MRP, governed by excise valuation rules.
NCCD on tobacco continues to be leviable as an excise duty and must be valued under the Central Excise Act and Valuation Rules; it is charged on the assessable value after allowing the prescribed abatement from MRP (MRP minus abatement), not by adding amounts above declared MRP, and GST valuation norms do not govern NCCD valuation.