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GSTN issues advisory on RSP-based valuation of pan masala

Share FacebookTwitterWhatsAppPinterestLinkedinCopy URLTelegramEmailTumblrReddItPrintKoo NEW DELHI, Jan 23: GST Network (GSTN)today issued an advisory on retail sale price-based valuation of tobacco products like pan masala for reporting in e-Invoice, e-Way Bill and monthly sales return form GSTR-1 and invoice furnishing facility (IFF). The Finance Ministry has notified a health and national security cess on pan masala manufacturing, on top of the highest 40 per cent Goods and Services Tax (GST) rate, effective February 1. The total tax incidence will be at the existing level of 88 per cent.

GSTN issues advisory on RSP-based valuation of pan masala

Credit: Dailyexcelsior

Key Highlights

  • Currently, 28 per cent GST plus a compensation cess is levied on pan masala.
  • Beginning February 1, GST will be levied as a percentage of the retail sale price of pan masala, and the cess will be levied on installed production capacity of the manufacturer.
  • Issuing the advisory, GSTN said taxpayers are required to report the net sale value in the taxable value field.
  • The tax amount shall be reported in accordance with the RSP-based valuation formula, and the total invoice value shall be reported as the sum of the net sale value and the tax amount.
  • These three fields shall be self-assessed, self-calculated, and correctly furnished by the taxpayer, and the accuracy thereof shall be duly verified prior to submission.
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Sources

  1. GSTN issues advisory on RSP-based valuation of pan masala

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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