The Goods and Services Tax (GST) Council on Monday decided to increase the cess on cigarettes to offset a reduced tax revenue from the product following the 1 July rollout of the indirect tax reform.Accordingly, the tax burden on cigarettes will go up by Rs4.8-7.9 per 10 sticks, depending on their length and whether or not they have filters. Finance minister Arun Jaitley, who briefed reporters after the GST Council meeting held via videoconferencing, said the increase in cigarette cess will benefit the exchequer by about Rs5,000 crore a year.“Each state specifically responded positively (to the proposal) and this change will be effected from midnight (of Tuesday),” said Jaitley.

Source - http://www.livemint.com