NEW DELHI, Aug 27: GST authorities in India have uncovered 61 cases of illicit tobacco products, including cigarettes and pan masala, involving unpaid taxes worth Rs 104.38 crore in Q1 FY26.
Cigarette smuggling has increased by over 107% in volume and over 110% in value between 2019-20 and 2023-24. To curb tax evasion, the government has introduced a special mechanism for manufacturers of tobacco products, requiring detailed production reporting.
Amendments in the Central GST Act through the Finance Act 2025 allow the government to implement a comprehensive track-and-trace system for certain goods, with penalties for violations. The Group of Ministers (GoM) has proposed two GST rates of 5% and 18% across all goods, replacing the existing four slab structure.
Prime Minister Narendra Modi announced a planned GST reform aimed at reducing prices of goods and services for the poor and middle class this Diwali. (IANS)
