Notification No. 19/2025–Central Tax (Rate), Dated 31-12-2025
1. Introduction
The Central Government has revised the GST rate structure for pan masala, tobacco, and related products through Notification No. 19/2025–Central Tax (Rate), dated 31 December 2025. The changes will apply to supplies made on or after 1 February 2026.
2. Amendment To Existing Rate Notification
The notification amends Notification No. 9/2025–Central Tax (Rate), dated 17 September 2025, restructuring the applicable GST rate schedules for specified tobacco-related goods. The amendment rationalises rates by realigning products across different GST schedules.
3. Revised Classification And Rates
Under the revised structure, biris have been placed under Schedule II, attracting 9% CGST. Pan masala and specified tobacco and tobacco-substitute products have been shifted to Schedule III, making them taxable at 20% CGST. The earlier Schedule VII, which prescribed a 14% rate, has been omitted.
4. Impact And Applicability
As a result of the amendment, the 14% GST rate is no longer applicable to any of the notified products. The revised rates will apply uniformly to all supplies of the covered goods effected on or after 1 February 2026, requiring businesses to update their tax configurations and pricing systems accordingly.
5. Conclusion
The revised GST rate structure marks a significant change in the taxation of pan masala, tobacco, and related products. Manufacturers, distributors, and suppliers should review the amended schedules and ensure timely compliance with the revised GST rates effective from 1 February 2026.
