UNMANUFACTURED TOBACCO DEALER

This query is : Resolved 

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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.

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?

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.

31 January 2026 But I am supplying to a biri manufacturer which is not covered under RSP, then also??

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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