The Ministry of Finance, (MoF), on December 31, 2025, issued amendments to the Notification No. 9/2025–Integrated Tax (Rate), relating to Goods and Services Tax (GST) rates on tobacco and related products. The amendments are made under Section 5(1) of the Integrated GST Act, 2017 and Section 15(5) of the Central GST Act, 2017, based on recommendations of the GST Council.
The changes include:
Insertion in Schedule II (18%): A new entry for biris (HS 2403 19 21, 2403 19 29).
Insertion in Schedule III (40%): New entries for pan masala (HS 2106 90 20), unmanufactured tobacco and tobacco refuse (HS 2401), cigars/cheroots/cigarillos/cigarettes (HS 2402), other manufactured tobacco products (HS 2403 excluding biris), and tobacco products for inhalation without combustion (HS 2404 11 00).
Omission in Schedule VII (28%): Certain entries attracting 28% IGST have been removed.
These amendments will come into effect from February 1, 2026, and revise the applicable GST rates on the specified tobacco and related products.
[Notification No. 19/2025–Integrated Tax (Rate)]
