gst on tobacco Impact of Rate the Industry GST on Cigarettes, Pan Masala and Gutkha Smoking just got more expensive

Smoking just got more expensive in India. From February 1, tobacco products now attract an effective 40% GST as the Centre rolls out a revised excise duty structure. The new regime links ET The government may soon raise GST on cigarettes and tobacco products as the current compensation cess ends in March 2026. Officials aim to sustain tax revenue without a new cess. Tobacco Products May Face Additional Levy As Government Weighs Post Cess Tax Options Exclusive Budget 2026 tightens the screws on tobacco. Higher GST, a steep jump in NCCD, and a shift to retail pricelinked excise mean higher prices and rising pressure on margins. With total tax incidence An additional excise duty on cigarettes and tobacco products, and a health cess on pan masala, will come into effect from 1 February. This additional duty is imposed over and above the The government has notified Feb 1, 2026 to roll out a new tax structure for sin goods, ending the GST compensation cess and adding fresh levies on top of GST. Pan masala

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