Notification No. 19/2025 - Central Tax (Rate)

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 19/2025 - Central Tax (Rate): Seeks to amend Notification 09/2025- Central Tax (Rate), to prescribe GST rates on tobacco products.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 9/2025- Central Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 641(E), dated the 17^th September, 2025, namely:-

In the said notification, -

in the Schedule II – 9%, after S. No. 4 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

“4A.

2403 19 21, 2403 19 29

Biris;”;

in the Schedule III – 20%, after S. No. 13 and the entries relating thereto, the following serial number and entries shall be inserted, namely: -

“14.	2106 90 20	Pan masala;
15.	2401	Unmanufactured tobacco; tobacco refuse [other than tobacco leaves];
16.	2402	Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes;
17.	2403 (other than 2403 19 21, 2403 19 29)	Other manufactured tobacco and manufactured tobacco substitutes; homogenised or reconstituted tobacco; tobacco extracts and essences [other than biris];
18.	2404 11 00	Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion;
19.	2404 19 00	Products containing tobacco or nicotine substitutes and intended for inhalation without combustion.”;

the Schedule VII – 14%, and the entries relating thereto shall be omitted.

2. This notification shall come into force on the 1^st day of February, 2026.

[F. No. CBIC-190349/73/2025-TRU]
(Dheeraj Sharma) Under Secretary

Note: The principal notification No. 9/2025- Central Tax (Rate), dated the 17^th September, 2025, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 641(E), dated the 17^th September, 2025.

📚 Frequently Asked Questions (FAQs): Notification No. 19/2025 - Central Tax (Rate)

Q1: What is Notification No. 19/2025 – Central Tax (Rate)?

Answer:
Notification No. 19/2025 – Central Tax (Rate) amends Notification No. 09/2025 – Central Tax (Rate) to revise GST rates on tobacco, pan masala, cigarettes, and nicotine products, effective from 1 February 2026 19-2025-CTR-Eng.

Q2: From which date are the revised GST rates applicable?

Answer:
The revised GST rates apply from 1st February 2026, as explicitly stated in the notification.

Q3: Which products are shifted to the highest GST slab?

Answer:
Products like pan masala, cigarettes, manufactured tobacco, and nicotine inhalation products are shifted to 40% GST (20% CGST + 20% SGST).

Q4: What is the GST rate on biris after this notification?

Answer:
Biris are now taxed at 18% GST under Schedule II (9% CGST + 9% SGST).

Q5: Why was Schedule VII (14% CGST) removed?

Answer:
The omission simplifies GST structure and ensures tobacco products are taxed at higher, uniform rates, reducing classification disputes.

Q6: Does this notification affect GST valuation also?

Answer:
Yes. It works in conjunction with Section 15(5) and RSP-based valuation rules, ensuring higher effective tax collection.

Q7: Will this impact retail prices of cigarettes and pan masala?

Answer:
Yes 🚨. Higher GST rates will increase final consumer prices, especially where RSP-based valuation applies.

Q8: Is this applicable to both manufacturers and traders?

Answer:
Yes. The revised rates apply across the supply chain—manufacturers, wholesalers, and retailers.

Q9: Are nicotine substitutes and vaping products covered?

Answer:
Yes. Products under HSN 2404 11 00 and 2404 19 00 are specifically included at 40% GST.

Q10: Does this notification change Input Tax Credit (ITC) eligibility?

Answer:
No direct ITC restriction is imposed. However, rate mismatches or incorrect classification may lead to ITC disputes.
👉 Ensure accurate returns with Finodha GST Return Filing:
https://finodha.in/gst-return-filing/

Q11: Real-life example for clarity?

Answer:
🧾 Example:
A cigarette pack sold at ₹200 earlier taxed at 28% will now attract 40% GST, significantly increasing tax outflow and retail price.

Q12: What happens if old GST rates are charged after 1 Feb 2026?

Answer:
Charging incorrect rates may result in:
Tax demand under Section 73/74
Interest under Section 50
Penalties for short-payment

Q13: How does this affect GST registration & classification?

Answer:
Businesses must re-verify HSN codes, pricing systems, and invoices. If expanding operations, fresh registration may be required.
👉 Register correctly with Finodha GST Registration:
https://finodha.in/online-gst-registration/

Q14: Does this notification apply uniformly across India?

Answer:
Yes. Being a Central Tax (Rate) notification, it applies uniformly across all States & UTs, along with corresponding SGST notifications.

Q15: How can Finodha help businesses impacted by this change?

Answer:
Finodha provides:
GST rate impact analysis
HSN & classification advisory
Return filing & audit support
Business restructuring guidance
👉 Consult a Finodha GST Expert today:
https://finodha.in/gst-compliance/