{"id":7464,"date":"2026-01-03T17:15:37","date_gmt":"2026-01-03T11:45:37","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=7464"},"modified":"2026-01-03T17:15:37","modified_gmt":"2026-01-03T11:45:37","slug":"govt-introduces-capacity-based-duty-for-gutkha-from-feb-2026","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/govt-introduces-capacity-based-duty-for-gutkha-from-feb-2026","title":{"rendered":"Govt Introduces Capacity-Based Duty For Gutkha From Feb 2026"},"content":{"rendered":"<p><span class=\"TextRun SCXW182108771 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/104010000000114523\/govt-introduces-new-capacity-based-duty-rules-for-gutkha-and-chewing-tobacco-packing-machines-from-1-feb-2026-notification\"><span class=\"NormalTextRun SCXW182108771 BCX0\" data-ccp-parastyle=\"Body-All Documents\" data-ccp-parastyle-defn=\"{&quot;ObjectId&quot;:&quot;f54e3151-7552-5563-bc14-dd1598e94375|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[469775450,&quot;Body-All Documents&quot;,201340122,&quot;2&quot;,134234082,&quot;true&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocuments&quot;,335572020,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777844,&quot;Book Antiqua&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,335559740,&quot;280&quot;,201341983,&quot;1&quot;,335559739,&quot;0&quot;,335551550,&quot;6&quot;,335551620,&quot;6&quot;,469777929,&quot;Body-All Documents Char&quot;,201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777843,&quot;Calibri&quot;,201341986,&quot;1&quot;,268442635,&quot;24&quot;]}\" data-ccp-parastyle-linked-defn=\"{&quot;ObjectId&quot;:&quot;d1cb5994-2cf1-5883-8af4-faa182bd9769|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777843,&quot;Calibri&quot;,469777844,&quot;Book Antiqua&quot;,201341986,&quot;1&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,268442635,&quot;24&quot;,469775450,&quot;Body-All Documents Char&quot;,201340122,&quot;1&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocumentsChar&quot;,335572020,&quot;1&quot;,134231262,&quot;true&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,469777929,&quot;Body-All Documents&quot;,469778324,&quot;Default Paragraph Font&quot;]}\">Notification No. 05\/2025\u2013Central Excise\u00a0<\/span><\/a><span class=\"NormalTextRun SCXW182108771 BCX0\" data-ccp-parastyle=\"Body-All Documents\"><a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/104010000000114523\/govt-introduces-new-capacity-based-duty-rules-for-gutkha-and-chewing-tobacco-packing-machines-from-1-feb-2026-notification\">(N.T.)<\/a>, Dated 31-12-2025<\/span><\/span><span class=\"EOP SCXW182108771 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\">\u00a0<\/span><\/p>\n<h2>1. Introduction<\/h2>\n<p>The Central Government has introduced the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026 through a notification. The new rules provide a framework for levy and collection of Central Excise duty on a capacity-based mechanism, applicable from 1 February 2026.<\/p>\n<h2>2. Scope And Applicability<\/h2>\n<p>The rules apply to chewing tobacco, jarda scented tobacco, and gutkha manufactured with the aid of packing machines and packed in pouches. Duty liability will be determined based on the number of packing machines in operation and their maximum rated speed, in conjunction with notified retail sale price (RSP) slabs, replacing conventional production-based assessment.<\/p>\n<h2>3. Capacity Determination And Duty Payment<\/h2>\n<p>Manufacturers are required to declare the number and specifications of packing machines in prescribed forms and obtain capacity certification from a chartered engineer. Monthly duty must be paid based on the determined capacity, with provisions for pro-rata duty in case of mid-month changes and abatement where machines remain non-operational for a specified period.<\/p>\n<h2>4. Compliance And Monitoring Requirements<\/h2>\n<p>The rules prescribe stringent compliance measures, including installation of CCTV systems, mandatory intimations for installation, removal, or sealing of machines, and recalculation of duty in case of changes in machine parameters. Manufacturers must adhere to defined timelines for declarations, duty payment, and filing of returns to remain compliant.<\/p>\n<h2>5. Conclusion<\/h2>\n<p>The introduction of capacity-based duty rules marks a significant shift in the excise duty regime for gutkha and chewing tobacco products. Manufacturers should assess the impact of the new framework and ensure readiness for compliance, as the rules will govern applicable manufacturing operations from 1 February 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Notification No. 05\/2025\u2013Central Excise\u00a0(N.T.), Dated 31-12-2025\u00a0 1. Introduction The Central Government has&hellip;<\/p>\n","protected":false},"author":16,"featured_media":7488,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,65],"tags":[],"class_list":["post-7464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-statutory-scope"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Govt Introduces Capacity-Based Duty For Gutkha From Feb 2026<\/title>\n<meta name=\"description\" content=\"Government notifies new capacity-based Central Excise duty rules for gutkha and chewing tobacco packing machines, effective from 1 February 2026.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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