The federal government on Thursday notified that further excise responsibility on tobacco merchandise, and a well being cess on pan masala will probably be levied efficient Feb. 1.
The brand new levies on tobacco and pan masala will probably be over and above the GST charge and can substitute the compensation cess which is presently being levied on such ‘sin items’.
From Feb 1, pan masala, cigarettes, tobacco and comparable merchandise will entice a GST charge of 40%, whereas ‘bidis’ will entice 18% Items and Companies Tax (GST), in line with a authorities notification.
On high of this, a Well being and Nationwide Safety Cess will probably be levied on pan masala, whereas tobacco and associated merchandise will entice further excise responsibility.
The Finance Ministry on Wednesday additionally notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capability Willpower and Assortment of Obligation) Guidelines, 2026.
In Dec. 2025, the Parliament accepted two Payments that allowed the levy of the brand new Well being and Nationwide Safety Cess on pan masala manufacturing and the excise responsibility on tobacco.
Nevertheless, the federal government on Wednesday notified that Feb. 1 would be the implementation date for these levies and the present GST compensation cess, levied at various charges, will stop to exist after Feb.1.
