GST 2.0 tussle: Centre eyes extra duty over 40% slab on tobacco products; states push for ‘significant’ cut

Following the proposed GST 2.0 reforms, the government is considering additional duties on tobacco products to maintain current taxation levels. Several states are requesting a significant share in this supplementary taxation to offset potential revenue reductions. Discussions are ongoing regarding the structure of these duties, with states seeking either equal shares or independent taxation rights.