Notification No.: 19/2025 – Central Tax
Date of Notification: 31st December, 2025
Relevant Sections and Rules:
Central Goods and Services Tax Act, 2017:
- Section 15(5) – Power of Government to notify value of certain supplies
- Section 164 – Power to make rules (contextual rule-making authority)
Reference Notification Amended:
- Notification No. 49/2023 – Central Tax dated 29th September, 2023
Summary of Notification:
This notification, issued under Section 15(5) of the CGST Act, 2017, amends Notification No. 49/2023 – Central Tax to expand the category of goods whose value shall be determined on the basis of the declared Retail Sale Price (RSP). A new clause (iv) has been inserted to include specified goods such as pan masala, unmanufactured tobacco, cigarettes, other manufactured tobacco (excluding biri), and certain tobacco or nicotine-based inhalation products falling under Chapters 21 and 24 of the Customs Tariff, where retail sale price is declared.
The notification further provides a comprehensive explanation of the term “retail sale price,” clarifying that it shall mean the maximum price declared on the package inclusive of all taxes, duties, surcharge or cess. It also stipulates that where multiple retail sale prices are declared, the highest price shall be considered; where the retail sale price is subsequently increased, the revised higher price shall be deemed the applicable retail sale price; and where different prices are declared for different areas, each such price shall apply to the respective area. This ensures uniformity and prevents undervaluation in respect of goods subject to RSP-based valuation.
By bringing these tobacco and related products within the RSP-based valuation framework, the Government strengthens tax administration in sectors prone to valuation disputes and revenue leakage, ensuring that GST is levied on a standardized and transparent value basis.
