GSTN Clarifies Tobacco Valuation: New Reporting Rules for RSP-Based GST
Economy
C
CNBC TV18•23-01-2026, 19:39
GSTN Clarifies Tobacco Valuation: New Reporting Rules for RSP-Based GST
- •GSTN issued an advisory for RSP-based valuation of tobacco products, effective February 1, 2026.
- •Notifications 19/2025–Central Tax and 20/2025–Central Tax mandate GST on specified tobacco products based on Retail Sale Price (RSP), not transaction value.
- •The advisory addresses system mismatches by allowing reporting of net sale value in taxable value fields for e-invoicing, e-way bills, and GSTR-1/1A/IFF, while tax is computed as per RSP.
- •This workaround ensures smooth system functionality and reduces compliance challenges for manufacturers, importers, and distributors.
- •The change aims to curb tax arbitrage, increase transparency, and strengthen revenue assurance in the tobacco sector.
Why It Matters: GSTN clarifies reporting for RSP-based tobacco valuation, easing compliance while ensuring tax accuracy.
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