Economy, Banking and Finance · 4 January 2026

Finance Ministry notifies 40% GST rate on tobacco & pan masala from Feb 1

Exam-focused facts from the 4 January 2026 current affairs briefing.

Key facts

  • Tobacco products and pan masala will attract a 40% GST rate under the Goods and Services Tax regime.
  • Biris will attract an 18% GST rate.
  • The current GST compensation cess on sin goods will be discontinued from February 1.
  • Additional excise duty will be levied on tobacco products and a Health and National Security Cess on pan masala.
  • The Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026 have been notified to determine production capacity and collect duty.

View this story in the full daily briefing

Earlier coverage selected by topic similarity to help connect developments over time.

CBDT launches 2nd NUDGE initiative on foreign assets

The Central Board of Direct Taxes (CBDT) formally launched the second NUDGE initiative, expanding its data-driven and non-intrusive reporting campaign focused on offshore asset disclosures. The Income Tax Department will…