Andhra Pradesh Seeks GST Cut on Raw Tobacco

Acting on the directions of Andhra Pradesh Chief Minister N. Chandrababu Naidu, a delegation comprising State Ministers Kinjarapu Atchannaidu, Gottipati Ravi Kumar, Dola Sree Bala Veeranjaneya Swamy, along with Members of Parliament, met Union Finance Minister Nirmala Sitharaman in Parliament. The delegation submitted a memorandum requesting the Centre to reduce the GST on raw tobacco (HSN 2401) from the existing 40% to 28%. They emphasized that the request pertains exclusively to raw tobacco and has no connection with manufactured tobacco products.

The delegation explained that the current GST rate has significantly affected the value of Flue-Cured Virginia (FCV) tobacco produced in Andhra Pradesh, creating difficulties for farmers, dealers, and exporters. They stated that reducing the GST would provide much-needed relief to stakeholders, improve the competitiveness of Indian tobacco exports in international markets, and safeguard the interests of tobacco farmers. The ministers and MPs urged the Union Government to consider the proposal positively and take an early decision.