Скачать или смотреть WTF? GST on ‘Bidis’ 🚬 Reduced! & For Cigarettes, Increased! WHY??

India’s recent GST reforms have brought surprising changes for tobacco products. Bidis, long taxed at 28%, will now enjoy a lower GST rate of 18%, while the leaves used to wrap them (called tendu leaves) are taxed even lower, at just 5%.

Meanwhile, cigarettes and other tobacco products—like pan masala, gutkha, and chewing tobacco—are set to move under a steeper 40% tax slab, effective once applicable adjustments are made. For now, cigarettes continue under the existing structure of 28% GST plus compensation cess until the government clears its related liabilities. Once the cess repayments are done, these products are expected to transition to the 40% “sin goods” slab.

Why this special rate for bidis? Government data shows that over 49 lakh registered bidi workers, mostly rural and home-based (and predominantly women), rely on this for income. This tax relief helps protect their livelihoods—especially in vulnerable, low-income areas.

At the same time, health experts have raised concerns—pointing out that bidis might be more harmful than cigarettes, delivering higher levels of carbon monoxide, nicotine, and tar. For them, the GST reduction could be a setback in India’s efforts to control tobacco use and reduce health risks.

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