CBIC issued Notification no. 03/2025 – Compensation Cess (Rate) dated 31.12.2025 which Seeks to amend Notification 01/2025- Compensation Cess Tax (Rate), to prescribe GST rates on tobacco products.
CBIC issued Notification no. 20/2025 – Central Tax dated 31.12.2025 which Seeks to notify Central Goods and Services Tax (Fifth Amendment) Rules, 2025 whereby Rule 31D regarding Value of supply of goods on basis of retail sale price is inserted.
CBIC issued Notification no. 18/2025-Central Tax (Rate) dated 31.12.2025 Seeking to amend Notification 09/2025- Central Tax (Rate), to prescribe GST rates on tobacco products.
The Union government is considering introducing a bill during the winter session of Parliament to impose a new levy on tobacco and related products, replacing the existing GST compensation cess, according to a report in the Economic Times.
Tobacco and online gaming stocks traded in the red on Monday, August 18, after the reports suggested that the Centre suggested a 40 percent GST slab on ‘sin goods,’ sparking some selling in these counters.
The Hon’ble Gujarat High Court in M/s. Sopariwala Export (P.) Ltd. held that the levy of 160% Compensation Cess on the supply of branded chewing tobacco products by manufacturers to merchant exporters for export must be kept in abeyance.
The government may increase the Goods and Services Tax (GST) on cigarettes and other tobacco products, according to a report by The Economic Times (ET). This change could happen once the government stops levying the compensation cess on these products.
A businessline report had earlier said that the Group of Ministers (GoM) within the GST Council is likely to recommend a rate hike on tobacco and tobacco-related products from 25 per cent to 35 per cent
A cigarette pack or gutaka pouch may soon be marked with a unique identifier in order to check GST evasion. The GST Council has approved a proposal empowering the government to implement the Track and Trace Mechanism for specified evasion-prone commodities, such as tobacco or tobacco-based products.
Manufacturers of pan masala, gutkha and similar items will get time till May 15 to implement special procedure for registration and monthly return filing. The new mechanism aims to plug revenue leakage under GST.
