gst in tobacco New Rates: 40% on Luxury Goods and Products, Insurance Policies Exempted Will 35% GST on Cigarettes

Will 35% GST on Cigarettes and Tobacco Make Your Smoking Habit More Expensive? Outlook Business GST On Tobacco: Why Bidis Are Taxed At 18% While Cigarettes Soar To 40% India prepares for a post GST cess era: What the new tax regime means for tobacco, pan masala, revenue and public health ET Edge Insights 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 and tobacco has been increased from 28% to 40%, but on bidis, paradoxically, reduced from 28% to 18%. Why? Is it because Adani Ambani smoke bidis?

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