gst on tobacco India has a new way to tax tobacco. Will it work? The government may soon raise

The government may soon raise GST on cigarettes and tobacco products as the current compensation cess ends in March 2026. Officials aim to sustain tax revenue without a new cess. Currently taxed GST on cigarettes, tobacco, aerated beverages may be hiked to 35%; Council decision on Dec 21 GST on cigarettes, tobacco, aerated drinks may rise to 35%: Report : r india 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 Smoking just got more expensive in India. From February 1, tobacco products now attract an effective 40% GST as the Centre rolls out a revised excise duty structure. The new regime links GST on Cigarettes, Tobacco, and Aerated Beverages Likely to Increase to 35%

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