Seeks to notify supplies under section 15(5) of CGST Act for valuation based on Retail sale price (RSP)
The Central Government has issued Notification No. 19/2025–Central Tax dated 31 December 2025 amending Notification No. 49/2023–Central Tax under sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017. Acting on the recommendations of the GST Council, the amendment inserts a new clause to prescribe valuation rules for specified goods where retail sale price (RSP) is declared. The notified goods include pan masala and various tobacco and nicotine products, such as unmanufactured tobacco, cigarettes, other manufactured tobacco, and inhalation products containing tobacco or nicotine substitutes. For these supplies, GST valuation will be based on the declared RSP, defined as the maximum price inclusive of all taxes and charges. The notification clarifies treatment where multiple RSPs are declared, where prices are altered, or where different RSPs apply to different areas. These valuation changes will come into force from 1 February 2026.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
Notification No. 19/2025–Central Tax | Dated: 31st December, 2025
G.S.R. 949(E).— In exercise of the powers conferred by sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 49/2023-Central Tax, dated the 29th September, 2023 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 705(E), dated the 29th September, 2023, namely: —
In the said notification, after clause (iii), the following clause shall be inserted, namely: —
“(iv) supply of the following goods bearing the description specified in column (3), falling under the corresponding Chapter/ heading/ sub-heading/ tariff item specified in column (2), of the Table below, on which retail sale price is declared : –
TABLE
| S. No. | Chapter / Heading / Sub-heading / Tariff item |
Description of Goods |
| (1) | (2) | (3) |
| 1. | 2106 90 20 | Pan masala |
| 2. | 2401 | Unmanufactured tobacco; tobacco refuse [other than tobacco leaves] |
| 3. | 2402 | Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes |
| 4. | 2403 | Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco; tobacco extracts and essences (other than biris) |
| 5. | 2404 11 00 | Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion |
| 6. | 2404 19 00 | Products containing tobacco or nicotine substitutes and intended for inhalation without combustion |
Explanation. – For the purposes of this clause, —
(a). “retail sale price” means the maximum price declared on goods at which such goods in packaged form may be sold to the ultimate consumer and includes all taxes, duties, surcharge or cess, by whatever name called;
(b). where on the package of any specified goods more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price;
(c). where the retail sale price declared on packages of any specified goods is altered to increase the retail sale price at any stage before, during, or after the supply, such altered retail sale price shall be deemed to be the retail sale price;
(d). where different retail sale prices are declared on different packages for the sale of any specified goods above in packaged form in different areas, each such retail sale price shall be the retail sale price for the purposes of valuation of the specified goods intended to be sold in the area to which the retail sale price relates.
(e). “tariff item”, “heading”, “sub-heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading, and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975);
(f). the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this clause.”
2. This notification shall come into force on the 1st day of February 2026.
[F. No. CBIC-20001/2/2025-GST]
KRITI PANDEY, Under Secy.
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 49/2023-Central Tax, dated the 29th September, 2023, published vide number G.S.R. 705(E), dated the 29th September, 2023.
