03/01/2026
π GST Valuation Update β RSP-Based Taxation for Specified Goods
(For informational purposes only | Subject to applicable law)
Application Date: 01 January 2026
The Government of India has issued Notification No. 19/2025βCentral Tax and Notification No. 20/2025βCentral Tax, introducing a significant change in the valuation mechanism under GST for certain notified goods.
πΉ The revised valuation applies to pan masala, to***co, ci******es, and nicotine-based products.
πΉ With effect from 1 February 2026, the value of supply for these goods shall be deemed as the declared Retail Sale Price (RSP) minus applicable GST, irrespective of the actual transaction value.
πΉ To give effect to this change, Rule 31D has been inserted in the CGST Rules, 2017.
πΉ Corresponding relief has also been provided under Rule 86B for non-manufacturer registered persons, where GST has already been discharged on an RSP basis.
This amendment marks a shift towards RSP-linked valuation for specified goods, aimed at strengthening valuation consistency and tax administration