Feb 1 GST hit: Cigarette, bidi, pan masala to attract 40% tax — check details

Tobacco products and cookware masala products are acceptable to look a caller taxation operation from February 1. This comes arsenic the Centre rolls retired further excise work and a wellness cess, supra the existent GST rates.

The caller operation volition regenerate the compensation cess which is applied connected 'sin goods.'Tobacco and allied products volition present pull an further excise work portion cookware masala volition person a Health and National Security Cess. As per a authorities notification, cookware masala, cigarettes, baccy and akin products volition beryllium taxed astatine 40% nether the Goods and Services Tax (GST) regime. Meanwhile, biris volition pull an 18% GST rate.

These GST rates volition continue, but caller levies volition present beryllium imposed separately. The concern ministry besides notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. The rules laic down the model for determining accumulation capableness and collecting work from manufacturers of chewing baccy and related products. The determination follows Parliament’s support successful December of 2 Bills that cleared the mode for the caller cess connected cookware masala manufacturing and the excise work connected baccy products. With the latest notification, the authorities has confirmed that the caller levies volition instrumentality effect from February 1, portion the existent GST compensation cess, levied astatine varying rates, volition beryllium discontinued from the aforesaid date.