gst on tobacco GST's Impact India's Industry: An Analysis Budget 2026 tightens the screws
Budget 2026 tightens the screws on tobacco. Higher GST, a steep jump in NCCD, and a shift to retail pricelinked excise mean higher prices and rising pressure on margins. With total tax incidence Glad to see this proposal on tobacco taxation in GST 2.0. A 40% peak GST rate along with an additional excise duty is exactly what we've been advocating for some time, and So the new GST proposal says: Cigars & Cigarettes 28% 40% Tobacco 28% 40% Bidis 28% 18% Looks like the government just launched a new campaign Vocal for Local Bidi Edition! Akash Shinde 126 comments The Indian government has announced higher GST rates on tobacco related products starting February 1. Pan masala, cigarettes, tobacco and similar items will now attract a 40% GST, while biris will be taxed
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