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GST on Cigarettes, Tobacco, and Aerated Beverages Likely to Increase to 35% Budget 2026 tightens the screws on tobacco. Higher GST, a steep jump in NCCD, and a shift to retail pricelinked excise mean higher prices and rising pressure on margins. With total tax incidence Cigarette Costs To Soar? Government Proposes Higher GST On Tobacco ET The government may soon raise GST on cigarettes and tobacco products as the current compensation cess ends in March 2026. Officials aim to sustain tax revenue without a new cess.
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