Time To Quit Smoking? Here's How Much A Large Cigarette Will Cost After GST Hike

Your Rs 19 cigarette will be dearer as GST on tobacco rises from 28% to 40%. Smoking, pan masala, and even pipes just got a lot more expensive.

Until now, a regular-sized cigarette priced at Rs 19 included a 28 per cent GST.

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GST On Cigarettes: Smoking is about to get more expensive. The Goods and Services Tax (GST) Council, at its 56th meeting chaired by Union Finance Minister Nirmala Sitharaman, has raised the tax burden on tobacco products from 28 per cent to a steep 40 per cent. It should be noted that a final date of implementation has not been announced yet for cigarettes, as officials will still have to discharge loan and interest liability under compensation cess.

For other tobacco and related products, the change will take effect from September 22, but more on that later.

From Rs 19 to Nearly Rs 22: The New Cigarette Math

Until now, a regular-sized cigarette priced at Rs 19 included a 28 per cent GST. With the slab moving up to 40 per cent, the same stick will now cost approximately Rs 21.70. That means an average smoker will spend almost Rs 2 more per cigarette, which quickly adds up for daily users.

Similarly, a small cigarette, currently priced at Rs 10, will now cost roughly Rs 10.94, marking a Rs 1 increase. 

The hike applies not just to cigarettes but to the entire tobacco category. Pan masala, cigars, cheroots, cigarillos, unmanufactured tobacco (excluding leaves), and reconstituted tobacco products will all be taxed at 40 per cent. Even accessories like smoking pipes, cigarette holders, and their parts fall under this higher rate.

Why the Sharp Jump In Cigarette Prices?

The Council’s decision aims at discouraging consumption of products harmful to health while creating a revenue stream from items classified as “sin goods.”

Officials pointed out that the increase is part of a dual-structure reform under which essential items will remain at the lower 5 per cent or 18 per cent brackets, while luxury and harmful products move to the highest slab.

Beyond Cigarettes: Other Products Hit

Alongside tobacco, the 40 per cent GST will also apply to sugary and aerated beverages, caffeinated drinks, luxury cars, motorcycles above 350cc, and even firearms and personal-use aircraft. Actionable claims such as betting, casinos, and online gaming have been brought under the same tax net.

For tobacco consumers, however, the message is immediate and personal: that Rs 19 cigarette will soon be history. From September 22, lighting up will cost closer to Rs 22 — and the price of the habit may keep climbing from here.

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