https://www.taxtmi.com/forum/issue?id=118143 Cigarettes are classifiable as tobacco products and under existing notifications attract the higher tax rate plus compensation cess regardless of place of supply. Where a bar or restaurant supplies cigarettes as part of a composite supply of food/drink, that supply may be characterised as a restaurant service and billed under the restaurant entry at the lower rate, but this carries risks: denial of Input Tax Credit, possible compensation cess liability, and revenue authority practice and precedents favouring sin goods treatment, leaving classification legally uncertain. en-us Tue, 06 Sep 2022 12:02:07 +0530 Thu, 23 Jan 2025 15:54:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118143 Cigarettes are classifiable as tobacco products and under existing notifications attract the higher tax rate plus compensation cess regardless of place of supply. Where a bar or restaurant supplies cigarettes as part of a composite supply of food/drink, that supply may be characterised as a restaurant service and billed under the restaurant entry at the lower rate, but this carries risks: denial of Input Tax Credit, possible compensation cess liability, and revenue authority practice and precedents favouring sin goods treatment, leaving classification legally uncertain. Discussion-Forum GST Tue, 06 Sep 2022 12:02:07 +0530 https://www.taxtmi.com/forum/issue?id=118143