UNMANUFACTURED TOBACCO DEALER

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Query on whether a raw tobacco wholesaler supplying to biri manufacturers must follow RSP-based valuation and take excise registration from Feb 2026. Expert clarified that RSP valuation does not apply to unmanufactured tobacco supply and no excise registration is required; GST remains transaction-based.

Chirag H. Thakkar

Chirag H. Thakkar (Querist)
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30 January 2026 I am a Raw Tobacco Wholesaler, selling to manufacturer of Biris. What will I have to do from 1st Feb 2026 regarding RSP based valuation rules??
Do I have to apply for excise registration?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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30 January 2026 You must register for Central Excise and shift your GST billing to a 40% rate based on RSP valuation starting 1st Feb 2026. This is part of a major "sin tax" restructuring where Compensation Cess is replaced by restored Excise Duties.

Chirag H. Thakkar

Chirag H. Thakkar (Querist)
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31 January 2026 But I am supplying to a biri manufacturer which is not covered under RSP, then also??

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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04 February 2026 RSP valuation does NOT apply to unmanufactured tobacco

Supplying to biri manufacturer does not change this

No excise registration needed for pure wholesaler

GST valuation remains transaction-based

Advice suggesting “40% RSP GST + excise” is wrong for your case

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