Learn languages naturally with fresh, real content!

tap to translate recording

Explore By Region

flag India replaces tobacco and pan masala cess with 40% GST, excise duties, and a new health/security cess starting Feb 1, 2026.

flag Starting February 1, 2026, India will replace the GST compensation cess on tobacco products and pan masala with a 40% GST, additional excise duties, and a new Health and National Security Cess. flag The change, effective after parliamentary approval in December 2025, aims to boost revenue, improve tax compliance, and support public health and national security. flag Pan masala will face a combined tax burden of 88%, with the cess based on manufacturing capacity rather than output, enabling better monitoring through inspections and data analytics. flag The previous cess, used to compensate states since 2017, ends as the central government repays pandemic-related debt. flag Revenue from excise and GST will now be shared with states, strengthening fiscal distribution.

20 Articles