Govt notifies February 1st as date from which additional excise duty to be levied on tobacco products
Govt notifies February 1st as date from which additional excise duty to be levied on tobacco products
New Delhi, January 1, 2026 (Media PBN)
Government has notified February 1 as the date from which additional excise duty will be levied on tobacco products and a new cess on pan masala.
The new levies on tobacco and pan masala will be over and above the GST rate, and will replace the compensation cess which is currently being levied on such sin goods.
From February 1, pan masala, cigarettes, tobacco and similar products will attract a GST rate of 40 per cent, while biris will attract 18 per cent Goods and Services Tax (GST).
On top of this, a Health and National Security Cess will be levied on pan masala, while tobacco and related products will attract additional excise duty.
Parliament had in December approved two Bills allowing the levy of the new Health and National Security Cess on pan masala manufacturing and excise duty on tobacco.
