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Parliament passes Bill to levy cess on Pan Masala manufacturing units

December 09, 2025

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The Daily Guardian

Parliament on Monday approved a Bill that seeks to impose cess on pan masala manufacturing units to augment resources for meeting expenditure on national security and public health.

- AGENCIES

Rajya Sabha returned the Health Security se National Security Cess Bill, 2025, to the Lok Sabha, which had cleared it on December 5.

The proposed Health and National Security Cess, which will be over and above the GST, will be levied on the production capacity of machines in pan masala manufacturing factories.

Currently, pan masala, tobacco and related products attract 28 per cent GST plus a compensation cess at a varied rate.

With the end of the compensation cess levy, the GST rate will go up to 40 per cent.

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