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UPSC Prelims Cheat Sheet Constitutional Source Article 246A : Grants concurrent power to both Centre and States for GST Entry 84 (Union List): Gives the Centre exclusive power to levy Excise Duty on tobacco (tobacco is among the few items under both GST and Excise) Article 270: Proceeds of GST and Excise are shared with States (Divisible Pool) Article 271: Proceeds of the National Security Cess go solely to the Consolidated Fund of India and are not shared with States Key Structural Changes Cigarettes & smokeless tobacco Permanent 40% GST slab High specific excise duty (tax per 1,000 sticks) Beedis Moved to lower 18% GST slab (from 28%) to protect workers Still subject to excise GST Compensation Cess Officially ceased (abolished) from February 1, 2026 Administrative Reform Capacity-based levy for unorganised sectors (pan masala) Tax calculated on machine speed (pouches per minute) instead of self-declared sales Objective: curb tax evasion Policy Goal Align with WHO guidelines Ensure tobacco prices rise faster than income growth (negative affordability)
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