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Tobacco, Pan Masala to Get Costlier from Feb 1, 2026: Govt Ends GST Cess, Imposes New Excise Duty & Health Cess
The Union Government has formally notified February 1, 2026 as the date from which a new taxation regime for tobacco products and pan masala will come into effect, marking a major restructuring of India’s indirect tax framework on so-called “sin goods”. Under the new system, additional excise duty will be levied on tobacco products , while a Health and National Security Cess will be imposed on pan masala , replacing the GST compensation cess , which will cease to exist from
Jan 13 min read
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