gst on tobacco The Indian government has announced higher rates tobacco-related products starting February 1. Pan masala, cigarettes, and similar items will now attract a 40% GST, while biris will be taxed GoM Proposes to Raise GST
GoM Proposes to Raise GST Tier on Tobacco and Sugar Sweetened Beverages GST 35% Hike on Tobacco, Cigarettes, and Aerated Beverages Ahead Of GST Meet, Demand To Tax Tobacco Products, Bidis At High Rates 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 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 GST on Bricks, Tobacco to Stay at 12% & 28%
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