Notification No. 19/2025 - Union Territory Tax (Rate)

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Notification No. 19/2025 - Union Territory Tax (Rate): Seeks to amend Notification 09/2025- Integrated 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 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) 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- Union Territory Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R. 646(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 numbers 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- Union Territory 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. 646(E), dated the 17^th September, 2025.

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

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

Answer:
It is a GST notification that revises UTGST rates on tobacco and related products by amending Notification No. 09/2025 – Union Territory Tax (Rate), effective from 1 February 2026 19-2025-UTR-Eng-corri.

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

Answer:
The revised rates apply from 1st February 2026 for all supplies made on or after this date.

Q3: Which tobacco products attract 9% UTGST?

Answer:
Only Biris (HSN 2403 19 21 & 2403 19 29) attract 9% UTGST under Schedule II.

Q4: Which products are taxed at 20% UTGST?

Answer:
Pan masala, cigarettes, cigars, manufactured tobacco, unmanufactured tobacco, and nicotine inhalation products are taxed at 20% UTGST.

Q5: Why was the 14% UTGST slab removed?

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

Q6: Does this notification apply outside Union Territories?

Answer:
No. This notification applies only to Union Territories. States follow corresponding CGST + SGST notifications.

Q7: How does Section 15(5) of CGST Act apply here?

Answer:
Section 15(5) allows the Government to notify special valuation or rate treatment for specified goods like tobacco.

Q8: Will this affect importers operating in UTs?

Answer:
Yes. Imports cleared for use in Union Territories will attract revised GST rates.
Ensure accurate compliance with Finodha GST Compliance:
https://finodha.in/gst-compliance/

Q9: What changes are required in GST returns?

Answer:
Businesses must update tax rates in billing software and correctly report UTGST in GSTR-1 and GSTR-3B.
👉 Start filing with Finodha GST Return Filing:
https://finodha.in/gst-return-filing/

Q10: Will old stock be taxed at old rates?

Answer:
No. GST depends on time of supply, not purchase date. Supplies after 1 Feb 2026 attract new rates.

Q11: Are vape and nicotine products included?

Answer:
Yes. Products under HSN 2404, including nicotine inhalation products, attract 20% UTGST.

Q12: Does this notification affect GST registration?

Answer:
Higher tax impact increases compliance risk. Businesses near threshold should reassess registration needs.
👉 Register easily with Finodha GST Registration:
https://finodha.in/online-gst-registration/

Q13: What are the consequences of charging wrong UTGST rates?

Answer:
Incorrect rates may lead to:
Tax demand under Section 73/74
Interest under Section 50
Penalties under GST law

Q14: Real-life example for better understanding?

Answer:
🧾 Example:
A cigarette packet sold in Delhi UT after 1 Feb 2026 will attract 40% GST, significantly increasing retail price.

Q15: How can Finodha help businesses in Union Territories?

Answer:
Finodha offers:
GST rate impact analysis
HSN & classification review
Return filing & advisory support
👉 Consult a Finodha GST Expert today!