Govt to replace GST compensation cess on tobacco, pan masala; Here’s what you should know

Parliament’s Winter Session sees the government proposing new excise duty on tobacco and a ‘Health Security–National Security Cess’ for pan masala. These measures aim to maintain tax revenue post-GST compensation cess expiry, ensuring continued fiscal space for public health and national security initiatives. The shift aligns with a new 40% GST slab for demerit goods.