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Notification No. 19/2025 – Central Tax Explained

by Shakshi Bharti | Dec 31, 2025 | GST, Notifications | 0 comments

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Important Keyword: GST RSP valuation, Section 15(5) CGST, GST on tobacco, pan masala GST, RSP based GST valuation, GST notification 2025,

Words: 1373 Read time: 7 minutes.

[F. No. CBIC-20001/2/2025-GST]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS

New Delhi, the 31^st day of December, 2025

Notification No. 19/2025 – Central Tax: Seeks to notify supplies under section 15(5) of CGST Act for valuation based on Retail sale price (RSP)

[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 (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 49/2023-Central Tax, dated the 29^th September, 2023 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 705(E), dated the 29^th September, 2023, namely: —

In the said notification, after clause (iii), the following clause shall be inserted, namely: —

"(iv) supply of the following goods bearing the description specified in column (3), falling under the corresponding Chapter/ heading/ sub-heading/ tariff item specified in column (2), of the Table below, on which retail sale price is declared : -

Table

S. No.	Chapter / Heading / Sub-heading / Tariff item	Description of Goods
(1)	(2)	(3)
1.	2106 90 20	Pan masala
2.	2401	Unmanufactured tobacco; tobacco refuse [other than tobacco leaves]
3.	2402	Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
4.	2403	Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences (other than biris)
5.	2404 11 00	Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion
6.	2404 19 00	Products containing tobacco or nicotine substitutes and intended for inhalation without combustion

Explanation. - For the purposes of this clause, —

"retail sale price" means the maximum price declared on goods at which such goods in packaged form may be sold to the ultimate consumer and includes all taxes, duties, surcharge or cess, by whatever name called;
where on the package of any specified goods more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price;

where the retail sale price declared on packages of any specified goods is altered to increase the retail sale price at any stage before, during, or after the supply, such altered retail sale price shall be deemed to be the retail sale price;
where different retail sale prices are declared on different packages for the sale of any specified goods above in packaged form in different areas, each such retail sale price shall be the retail sale price for the purposes of valuation of the specified goods intended to be sold in the area to which the retail sale price relates.
“tariff item”, “heading”, “sub-heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading, and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975);
the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this clause.”

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

[F. No. CBIC-20001/2/2025-GST]
(Kriti Pandey) Under Secretary

Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 49/2023-Central Tax, dated the 29^th September, 2023, published vide number G.S.R. 705(E), dated the 29^th September, 2023.

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

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

Answer:
Notification No. 19/2025 – Central Tax notifies additional goods for GST valuation based on Retail Sale Price (RSP) under Section 15(5) of the CGST Act, 2017, effective from 1 February 2026 19-2025-ct.

Q2: Which law allows GST valuation on RSP instead of transaction value?

Answer:
Section 15(5) of the CGST Act, 2017 empowers the Government to notify specific goods where GST value is determined as per prescribed rules, including RSP-based valuation.

Q3: From which date is RSP-based valuation applicable?

Answer:
RSP-based valuation applies from 1st February 2026, as explicitly stated in Notification No. 19/2025 – Central Tax.

Q4: What is meant by “Retail Sale Price (RSP)” under this notification?

Answer:
RSP means the maximum price declared on the package, inclusive of all taxes, duties, cess, and surcharges, at which goods may be sold to the ultimate consumer.

Q5: If multiple RSPs are printed on a package, which one applies?

Answer:
The highest RSP printed on the package shall be deemed as the Retail Sale Price for GST valuation purposes.

Q6: What if RSP is increased after packaging but before sale?

Answer:
If RSP is altered upward at any stage, the revised higher RSP will be treated as the valuation base for GST.

Q7: Does area-wise different RSP affect GST valuation?

Answer:
Yes. Where different RSPs are declared for different areas, GST valuation will be based on the RSP applicable to that specific area.

Q8: Is transaction value completely irrelevant after this notification?

Answer:
For notified goods, yes. Transaction value under Section 15(1) becomes irrelevant. GST must be calculated only on RSP basis.

Q9: Does this apply to loose or unpackaged goods?

Answer:
No. The notification applies only to goods in packaged form where RSP is declared.

Q10: How does this impact GST invoicing?

Answer:
Invoices must:
Reflect GST charged on RSP-based value
Align with HSN classification
Match declared RSP to avoid mismatch during audits
👉 Ensure accurate invoicing via Finodha GST Return Filing Services:
https://finodha.in/gst-return-filing/

Q11: Will Input Tax Credit (ITC) be affected?

Answer:
No direct restriction on ITC is imposed by this notification. However, valuation disputes may lead to ITC reversals if RSP compliance is incorrect.

Q12: Is this similar to excise-duty MRP valuation?

Answer:
Yes 👍. This mirrors the earlier excise-duty MRP-based taxation, now implemented within the GST framework.

Q13: Who will be most impacted by Notification No. 19/2025?

Answer:
Tobacco manufacturers
Cigarette distributors
Pan masala traders
Nicotine & vaping product suppliers
👉 If you’re setting up or restructuring such a business, consult Finodha Business Setup Experts:
https://finodha.in/setup-business/

Q14: What penalties can arise for non-compliance?

Answer:
Demand under Section 73/74
Interest under Section 50
Penalties for mis-declaration of value or RSP

Q15: How can Finodha help with RSP-based GST compliance?

Answer:
Finodha assists with:
GST valuation advisory
Return filing & audits
HSN classification support
MSME & DSC registration
👉 Speak to a Finodha GST Expert today:
https://finodha.in/gst-compliance/

✅ Conclusion

Notification No. 19/2025 – Central Tax is a decisive move to curb undervaluation and tax leakage in high-risk goods. Businesses dealing in pan masala, tobacco, cigarettes, and nicotine products must re-engineer pricing, packaging, and GST computation before 1 February 2026.