The Ministry of Finance (Department of Revenue) issued Notification No. 19/2025–Union Territory Tax (Rate) on 31 December 2025, amending Notification No. 9/2025 under the Union Territory Goods and Services Tax Act, 2017, with effect from 1 February 2026. Acting on the Council’s recommendations, the amendment restructures UTGST rate schedules for tobacco and allied products. Biris (HS 2403 19 21 and 2403 19 29) are specifically inserted into Schedule II (9%). Schedule III (20%) is expanded to include pan masala, unmanufactured tobacco and tobacco refuse (other than leaves), cigars, cigarettes and similar products, manufactured tobacco and substitutes (excluding biris), and non-combustion inhalation products containing tobacco or nicotine substitutes. Simultaneously, Schedule VII (14%) is omitted, consolidating rates. The changes clarify classification, streamline slabs, and align UTGST treatment for tobacco-related goods with broader GST rate rationalisation from February 2026.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 19/2025- Union Territory Tax (Rate) | Dated: 31st December, 2025
G.S.R. 948(E).—In exercise of the powers conferred by sub-section (1) of section 7 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 9/2025- Union Territory Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(i), vide number G.S.R. 646(E), dated the 17th September, 2025, namely:-
In the said notification, –
(a in the Schedule II – 9%, after S. No. 4 and the entries relating thereto, the following serial number and entries shall be inserted, namely: –
| “4A. | 2403 19 21, 2403 19 29 | Biris;” |
(b) in the Schedule III – 20%, after S. No. 13 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –
| “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 of tobacco substitutes; |
| 17. | 2403 (other than 2403 19 21, 2403 19 29) | Other manufactured tobacco and manufactured 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) the Schedule VII – 14%, and the entries relating thereto shall be omitted.
2. This notification shall come into force on the 1st day of February, 2026.
[F. No. CBIC-190349/73/2025-TRU]
DHEERAJ SHARMA, Under Secy.
Note: The principal notification No. 9/2025- Union Territory Tax (Rate), dated the 17th September, 2025, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 646(E), dated the 17th September, 2025.
