-
All services, as well as goods excluding specified tobacco-related items (pan masala, gutkha, cigarettes, unmanufactured tobacco, zarda, beedi), will see their revised GST rates from 22nd September 2025.
-
In contrast, tobacco-related items (like pan masala, gutkha, cigarettes, chewing tobacco products, unmanufactured tobacco, beedi) will continue to be taxed at existing GST rates plus compensation cess, until the compensation cess loan and interest obligations are fully settled. The Council will decide the exact date for their transition to the new rates at a later point.
Summary at a Glance
| Category | Effective Date | Notes |
|---|---|---|
| Services and most goods | 22 September 2025 | All changes apply from this date. |
| Tobacco-related goods (e.g., cigarettes) | Not yet specified | Continue at current rates until compensation cess obligations are cleared; new date will be announced later. |
What Does This Mean Practically?
-
From 22 September 2025, businesses should start applying the new GST rate slabs (5% and 18%) for most transactions, including services.
-
Tobacco-related products, however, will continue under the current framework until further notice.
-
Businesses dealing in tobacco or related products should stay alert for official updates—notably from the GST Council or CBIC—when the transition date for those items is finalized.
In Summary
Amendments recommended by the 56th GST Council Meeting are generally applicable from 22 September 2025, except that tobacco-related goods will follow a deferred timeline, pending clearance of compensation cess liabilities.
The above compilation is made for educational purpose only. Please refer to the original press release before relying on any information. Click here for original press release content.
