gst on tobacco New Rates: 40% Luxury Goods & Tobacco; Insurance Policies Exempted Budget 2026 tightens the screws

Budget 2026 tightens the screws on tobacco. Higher GST, a steep jump in NCCD, and a shift to retail pricelinked excise mean higher prices and rising pressure on margins. With total tax incidence GST on Tobacco Leaves Procured AKGVG & Associates GST: Sin Tax Why bidis are smoking 18% while cigarettes burning at 40% tax EXPLAINED Economy ET Now The government has notified Feb 1, 2026 to roll out a new tax structure for sin goods, ending the GST compensation cess and adding fresh levies on top of GST. Pan masala Govt. imposes highest GST Cess limit on tobacco E StartupIndia

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