- CBIC issued notifications on 31 December 2025 regarding GST valuation based on Retail Sale Price (RSP) for certain supplies under Section 15(5) of the CGST Act.
- GST rates for pan masala, tobacco, and nicotine products have been revised, effective 1 February 2026 (e.g., pan masala: 20% CGST/SGST, 40% IGST; biris: 9% CGST/SGST, 18% IGST).
- Schedule VII (14%/28%) will be omitted, and the new rates are in addition to Compensation Cess where applicable.
- The Central Goods and Services Tax (Fifth Amendment) Rules, 2025, have been notified, introducing Rule 31D (special valuation for specified goods) and amending Rule 86B, effective 1 February 2026.
- Specified goods under the new rules include pan masala, various tobacco products, and products containing tobacco or nicotine substitutes intended for inhalation without combustion.
Source: nexdigm.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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