{"id":7763,"date":"2026-01-27T16:23:24","date_gmt":"2026-01-27T10:53:24","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=7763"},"modified":"2026-01-27T16:23:24","modified_gmt":"2026-01-27T10:53:24","slug":"gstn-advisory-on-rsp-based-valuation-of-tobacco-under-gst","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/gstn-advisory-on-rsp-based-valuation-of-tobacco-under-gst","title":{"rendered":"GSTN Advisory On RSP Based Valuation Of Tobacco Under GST"},"content":{"rendered":"<p><span class=\"TextRun SCXW33036370 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW33036370 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;]}\"><a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/222330000000024768\/advisory-released-on-reporting-rsp-based-valuation-for-tobacco-products-under-gst-gstn-advisory\">GSTN Advisory<\/a>, Dated 23-01-2026<\/span><\/span><span class=\"EOP SCXW33036370 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: GSTN Issues Advisory on RSP-Based Valuation<\/h2>\n<p>The Goods and Services Tax Network (GSTN) has issued an advisory dated 23 January 2026 to guide taxpayers on reporting taxable value and tax liability for notified tobacco and tobacco-related products subject to Retail Sale Price (RSP)-based valuation under GST, effective from 1 February 2026.<\/p>\n<h2>2. Statutory Basis for RSP-Based Valuation<\/h2>\n<p>The advisory reiterates that valuation of notified tobacco products shall be governed by Notification No. 19\/2025\u2013Central Tax and Notification No. 20\/2025\u2013Central Tax, both dated 31 December 2025. Under these provisions, GST is to be determined with reference to the RSP declared on the package, irrespective of the actual transaction value agreed between the supplier and the recipient.<\/p>\n<h2>3. Computation of Taxable Value From RSP<\/h2>\n<p>GSTN has explained the statutory mechanism for computing the deemed taxable value and corresponding tax liability from the declared RSP. The advisory clarifies that the taxable value derived from RSP may differ from the commercial consideration, and GST must be calculated strictly as per the prescribed RSP-based valuation formula.<\/p>\n<h2>4. Reporting in e-Invoice, e-Way Bill and GST Returns<\/h2>\n<p>For reporting purposes in e-Invoice, e-Way Bill, and GSTR-1, GSTR-1A, or IFF, taxpayers are required to disclose the net sale value, being the actual commercial consideration, in the taxable value field. However, tax must be calculated and reported strictly on the RSP-based deemed value. The total invoice value should reflect the aggregate of the net sale value and the tax so computed.<\/p>\n<h2>5. Conclusion: Compliance Responsibility on Taxpayers<\/h2>\n<p>The advisory places responsibility on taxpayers to correctly identify notified HSNs, apply RSP-based valuation only to eligible goods, and ensure accurate self-assessment and reporting. Any mismatch between transaction value and deemed taxable value must be carefully verified to avoid compliance issues. This clarification aims to ensure uniform reporting and reduce disputes in GST compliance for tobacco products.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GSTN Advisory, Dated 23-01-2026\u00a0 1. Introduction: GSTN Issues Advisory on RSP-Based Valuation&hellip;<\/p>\n","protected":false},"author":16,"featured_media":7766,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,62,189],"tags":[],"class_list":["post-7763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-statutory-scope"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GSTN Advisory On RSP Based Valuation Of Tobacco Under GST<\/title>\n<meta name=\"description\" content=\"GSTN issues advisory on RSP based valuation for notified tobacco products under GST, clarifying reporting in e-Invoice, e-Way Bill and GSTR-1.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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