<h1>GST Council Hikes Compensation Cess on Cigarettes to Match Pre-GST Tax Levels; New Rates from July 18, 2017.</h1> The GST Council, in its 19th meeting on July 17, 2017, decided to increase the Compensation Cess rates on cigarettes to align the total tax incidence with the pre-GST regime. This adjustment was necessary because the previous method of calculating the cess did not account for the cascading effect of taxes, leading to a reduced tax incidence on cigarettes under GST. The new rates, effective from July 18, 2017, involve specific increases in cess for various categories of cigarettes, both non-filter and filter, to ensure higher taxation on these demerit goods.