Delhi: The central government announced on Wednesday that additional excise duty will be imposed on tobacco products and a new cess on pan masala, effective February 1.
A notification issued by the Union Finance Ministry stated, “From February 1, 40 percent Goods and Services Tax (GST) will be levied on pan masala, cigarettes, tobacco and similar products, and 18 percent GST on beedis. In addition to the excise duty on tobacco and related products, a new cess will be imposed on pan masala.”
In addition, the Union Finance Ministry also notified the Chewing Tobacco, Zarda, and Gutkha Packing Machine Rules 2026.
Last December, Parliament passed bills imposing additional excise duty on tobacco and a new cess on the production of pan masala.
