Excise Duty

Tobacco Institute urges review of tax hike on cigarettes, tobacco products

The Tobacco Institute of India calls on the government to reconsider the steep excise and GST hike on tobacco, warning of hardships for farmers, MSMEs, retailers and a surge in illicit trade

Why is Centre bringing back excise on tobacco after GST cess ends

The government said that tobacco products will continue to attract GST but will also be subject to additional excise duty on top of that tax from February 1

New tobacco excise duty rules: What changes, what stays, price impact

Before the latest notification, cigarettes and other tobacco products were taxed under a layered structure combining GST with multiple cesses, including a compensation levy

Tobacco excise rules: Makers to install CCTV, store footage from Feb 1

Manufacturers of chewing tobacco, gutkha and similar products will have to install a functional CCTV system from February 1, covering all packing machines and preserve the footage for at least 24 months, according to a government notification. Such manufacturers will also have to disclose to excise authorities the number of machines and their capacities, and can also claim abatement in excise duty in case a machine is non-functional for a minimum of 15 consecutive days, according to the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules notified by the Finance Ministry. The Rules will apply to manufacturers who pack such goods in pouches. "Those manufacturing in other forms (such as tins) have to pay the applicable duty on assessable value," an FAQ released by the Ministry said. The Ministry, on December 31, 2025, notified the additional excise duties that would be levied on chewing tobacco and related products,

Cigarettes, biris, pan masala, tobacco products to get costlier from Feb 1

The government on Wednesday notified February 1 as the date from which additional excise duty will be levied on tobacco products, and a new cess on pan masala. The new levies on tobacco and pan masala will be over and above the GST rate, and will replace the compensation cess which is currently being levied on such sin goods. From February 1, pan masala, cigarettes, tobacco and similar products will attract a GST rate of 40 per cent, while biris will attract 18 per cent Goods and Services Tax (GST), according to a government notification. On top of this, a Health and National Security Cess will be levied on pan masala, while tobacco and related products will attract additional excise duty. The Finance Ministry on Wednesday also notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. Parliament had in December approved two Bills allowing levy of the new Health and National Security Cess on pan masa

Massive and historic economic transformation underway in UP: Nitin Agarwal

Minister Nitin Agarwal outlines how state's quadrupled excise revenue and robust infra are catalysing industrial investment and helping it to become a developed state

Excise reset uncorks demand and investment in Andhra's liquor market

Retail privatisation, wider brand access and transparent rules are lifting volumes and drawing major players back to the state

Bills to replace GST compensation cess on tobacco, pan masala likely in LS

The government is likely to introduce two bills in the Lok Sabha to replace GST compensation cess with another levy, to ensure that the tax incidence remains the same on tobacco, pan masala and other sin goods after discontinuation of the cess. The Central Excise Amendment Bill, 2025, and The Health Security se National Security Cess Bill, 2025, are listed for introduction on Monday by Finance Minister Nirmala Sitharaman. According to sources, the Central Excise Amendment Bill, 2025, will replace GST compensation cess on tobacco by levying excise duty on tobacco. The 'Health Security se National Security Cess Bill, 2025', will replace the compensation cess on pan masala. It seeks to "augment the resources for meeting Security expenditure on national security and for public health, and levy a cess for the said purposes on the machines installed or other processes undertaken by which specified goods are manufactured or produced". Currently, Goods and Services Tax (GST) at 28 per cent

Delhi govt's excise revenue records 12% growth in first half of FY26

With rise in liquor sales, the Delhi government has registered over 12 per cent growth in excise revenue collection in the first half of the current financial year as compared to the same period last year, officials said on Saturday. As per official figures, the excise revenue including value added tax (VAT) was Rs 3,731.79 crore during April-September 2024-25. It grew to Rs 4,192.86 crore in the first half of the current financial year. The excise revenue of the first half of 2025-26 is likely to rise further with updates as VAT figures were available up to September 16 only, said an excise department official. "The rise in sale has led to crossing the half mark of excise revenue target of Rs 6,000 crore in 2025-26. With festival season kicking in, peak in sales around Diwali and New Year will hopefully help crossing the annual target," the official added. According to data, the cumulative monthly excise receipts (excluding VAT) in April-September 2024-25 were Rs 279.81 crore. It

Delhi excise panel reviews tax rates, MRPs of liquor to boost revenue

The issues of unchanged excise tax rates and maximum retail prices (MRP) of liquor in Delhi were discussed in a meeting of the PWD minister Parvesh Verma-led committee on Friday, sources said. The committee is tasked with preparing the draft of a new excise policy. Delhi loses revenue to NCR cities, including Ghaziabad and Nodia (in UP) and Faridabad and Gurugram (in Haryana), due to lower excise tax rate and MRPs, sources said. "The excise tax rate in Delhi has not been revised since 2014, and the MRP was last updated three years ago. A revision in these two will help to tap the full potential of the retail liquor trade in Delhi and generate more revenue for the government," an official source said. Chief Minister Rekha Gupta earlier said that her government was working to form a new "transparent, socially responsible" excise policy that would also help in generating more revenue for the government. Sources said that the draft of the new excise policy is likely to be ready in a .

Alcohol firms seek clarity as Maharashtra hikes excise duty on spirits

Maharashtra's new excise policy raises spirits prices and introduces grain-based liquor; industry groups await clarity while brewers welcome beer tax exemption

UBL to Radico Khaitan: Alcohol stocks decline after excise duty hike report

United Spirits and Allied Blenders led a selloff in alcohol beverage makers on reports that the Maharashtra government approved a hike in excise duty

Maharashtra hikes excise duty on liquor, introduces new category: Details

Maharashtra hikes excise duty on Indian-Made Foreign Liquor (IMFL) and country liquor, introduces new Maharashtra-Made Liquor category; state expects ₹14,000 crore in revenue boost

Haryana revises excise policy: No liquor shops in small villages, new rules

The Haryana government has decided to increase excise duties on Indian-Made Foreign Liquor and country liquor by 5 per cent to 10 per cent

Excise policy case: Delhi HC to hear on Monday Kejriwal, Sisodia's pleas

The Delhi High Court on Monday will hear petitions by AAP leaders Arvind Kejriwal and Manish Sisodia against the trial court's decision to take cognisance of the Enforcement Directorate's charge sheet filed in alleged excise policy scam. The petitions, filed in 2024, are listed for hearing before Justice Ravinder Dudeja. According to the former Delhi chief minister, the special court took cognisance of the charge sheet filed in a money laundering case linked to the scam in the absence of any sanction for his prosecution, which was required as he was a public servant when the alleged offence was committed. Similar objections have been raised by the former deputy chief minister as well. Sisodia said in his petition that since the allegations against him related to official acts carried out by him as a public servant, prior sanction to prosecute was required. Besides seeking to set aside the trial court's order, Kejriwal has also sought quashing of all proceedings in the case. The hi

Govt hikes excise duty on petrol, diesel by ₹2/ltr; retail prices unchanged

The excise duty on petrol was increased to Rs 13 per litre and that on diesel to Rs 10, according to an official order

NOC to be made mandatory for liquor vends in housing societies: Ajit Pawar

Ajit Pawar also told the legislative assembly that no permission to open new liquor shops has been given in the state since 1972

Competition watchdog seeks official documents in Pernod Ricard probe

In the Delhi antitrust case, Pernod has been accused of asking retailers in 2021 to ensure 35 per cent of their stock consisted of the French company's brands

Delhi Assembly polls: More than 500 cases of MCC violations lodged

Over 500 cases of alleged violation of the Model Code of Conduct have been registered so far ahead of the assembly elections in the national capital, an official said on Thursday. The cases were registered between January 7, when the model code came into effect, and January 22. A total of 17,879 people were arrested under various provisions, including the Excise Act, during this period, according to a statement. Ahead of the polls, the city police has intensified vigilance at border checkpoints and conducted crackdowns on illegal activities, including the smuggling of arms, liquor and drugs. Delhi Police recorded 504 cases of alleged Model Code of Conduct (MCC) violations and confiscated 270 illegal firearms and 372 cartridges, the statement said It also seized 44,265 litres of liquor worth over Rs 1.3 crore, 110.53 kg of drugs worth more than Rs 20 crore, and over 1,200 banned injections. Law enforcement agencies also seized Rs 4.56 crore in cash and 37.39 kg of silver, the stat

CNG price may go up Rs 4-6 on supply cut, excise duty reduction to ease

The government has slashed by up to 20 per cent the supplies of cheaper domestically produced natural gas to city retailers -- a move that may result in Rs 4-6 per kg hike in the price of CNG sold to automobiles, unless excise duty on the fuel is cut, sources said. Natural gas pumped from below the ground and from under the seabed from sites ranging from the Arabian Sea to Bay of Bengal within India is the raw material that is turned into CNG for sale to automobiles and piped cooking gas to households. Production from legacy fields, whose price is regulated by the government and which are used to feed city gas retailers, has been falling by up to 5 per cent annually due to natural decline that has set in. This has led to supply cuts to city gas retailers, four sources in know of the matter said. While the input gas for piped cooking gas that households get is protected, the government has cut supply of raw material for CNG. Gas from legacy fields used to meet 90 per cent of the dema