GST Rate Update: Biris at 9%, Tobacco & Pan Masala at 20%
“GST Rate Update: Biris at 9%, Tobacco & Pan Masala at 20% – 14% GST Removed (Effective 1st Feb 2026)”
G.S.R. ……(E) – In exercise of the powers under section 9(1) and section 15(5) of the Central Goods and Services Tax Act, 2017 (CGST Act), the Central Government, on the recommendation of the GST Council, has issued amendments to the notification No. 9/2025 – Central Tax (Rate) (G.S.R. 641(E), dated 17th September 2025).
These amendments relate to changes in tax rates for tobacco, pan masala, and related products.
1. Effective Date
The amendments will come into force from 1st February 2026.
2. Key Changes in GST Rates
A. Addition to 9% Tax Rate – Schedule II
A new entry is inserted in Schedule II – 9%:
| S. No. | HSN Code | Description |
|---|---|---|
| 4A | 2403 19 21, 2403 19 29 | Biris |
B. Addition to 20% Tax Rate – Schedule III
New entries are inserted in Schedule III – 20%:
| S. No. | HSN Code | Description |
|---|---|---|
| 14 | 2106 90 20 | Pan masala |
| 15 | 2401 | Unmanufactured tobacco; tobacco refuse (other than tobacco leaves) |
| 16 | 2402 | Cigars, cheroots, cigarillos, and cigarettes, of tobacco or tobacco substitutes |
| 17 | 2403 (other than 2403 19 21, 2403 19 29) | Other manufactured tobacco and tobacco substitutes; homogenised or reconstituted tobacco; tobacco extracts and essences (other than biris) |
| 18 | 2404 11 00 | Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion |
| 19 | 2404 19 00 | Products containing tobacco or nicotine substitutes and intended for inhalation without combustion |
C. Removal of 14% Tax Rate – Schedule VII
- The Schedule VII – 14% and all related entries are deleted.
- This effectively removes the 14% GST rate from the items listed in Schedule VII.
3. Reference
- Principal Notification: No. 9/2025 – Central Tax (Rate), dated 17th September 2025 (G.S.R. 641(E))
- File Reference: F. No. CBIC-190349/73/2025-TRU
- Issued By: Dheeraj Sharma, Under Secretary, CBIC
✅ Summary of Impact
- Biris now taxed at 9% GST.
- Pan masala, unmanufactured tobacco, cigarettes, and other tobacco products now taxed at 20% GST.
- 14% GST rate on certain items is removed.
- Compliance and invoicing systems must be updated from 1st February 2026.
