Quick Summary
The Central Government has officially notified February 1, 2026, as the date on which the provisions of the Central Excise (Amendment) Act, 2025 will come into force. The notification was issued by the Ministry of Finance (Department of Revenue) on December 31, 2025. Alongside this, the government has brought chewing tobacco, jarda scented tobacco and gutkha manufactured using packing machines under a special excise duty regime as notified goods under Section 3A of the Central Excise Act, 1944.
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FAQ :
The new excise rules for tobacco products will come into effect on February 1, 2026.
The new rules specifically apply to chewing tobacco (including filter khaini), jarda scented tobacco, and gutkha manufactured using packing machines.
Excise duty will be levied and collected based on the number and speed of packing machines installed in a factory, a system known as capacity-based taxation.
All types of Form-Fill-Seal (FFS) packing machines, whether vertical or horizontal, single-track or multi-track, are covered.
Manufacturers must file an initial declaration within seven days of machine installation, pay monthly excise duty by the 6th of each month, and install CCTV surveillance systems.
The aim is to curb tax evasion, improve monitoring of high-risk tobacco products, and ensure stable revenue collection through a predictable, machine-based excise duty mechanism.
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