Capacity-Based Excise Duty — Effective from 1st February 2026

The Government of India has notified the implementation of capacity-based Central Excise Duty for manufacturers of Chewing Tobacco, Jarda Scented Tobacco and Gutkha manufactured using packing machines and packed in pouches.

Key highlights:

• Duty will be levied based on production capacity of packing machines (w.e.f. 1 Feb 2026)
• No new Central Excise registration required for already-registered taxpayers
• Manufacturers must file a declaration of machine details with the Jurisdictional Deputy/Assistant Commissioner between 1 Feb 2026 to 7 Feb 2026
• Monthly Central Excise Duty payment due on the 6th day of every month
• Monthly Central Excise Statement due on the 10th day of every month
• In other cases (such as tin), duty will be calculated on Retail Selling Price (subject to abatement)

Stay informed. Stay compliant.

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