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RSP Based Valuation of Notified Tobacco Goods under GST: Reporting & Compliance in e-Invoice and e-Bill Systems
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Vide Notification Nos. 19/2025–Central Tax and 20/2025–Central Tax, both dated 31.12.2025,
Retail Sale Price (RSP)-based valuation for specified tobacco and tobacco-related products, has
been prescribed with effect from 01.02.2026.

As per the said notifications, valuation of the notified goods is required to be carried out on the
basis of the declared Retail Sale Price (RSP). Accordingly, the taxable value for GST purposes is
no longer linked to the actual sale price between the supplier and the recipient, but is derived
from the RSP printed on the package, irrespective of the commercial consideration.

2. Computation of Tax under RSP-Based Valuation
2.1. For goods notified under RSP-based valuation, tax is required to be computed using the
following formula:
• Tax Amount = (RSP × GST Rate in % of applicable taxes) / (100 + Sum of applicable tax
rate)
• Deemed Taxable Value = RSP − Tax Amount

Thus, GST liability is determined with reference to RSP, irrespective of the actual sale price.


3. Existing System Validations in e-Invoice, e-Way Bill and GSTR-1/1A/IFF
Taxable Value + Tax Amount ≤ Total Invoice Value

4.Reporting Guidance for RSP-based Valuation Goods
4.1. For supplies covered under RSP-based valuation, taxpayers are advised
to report invoice details in the following manner in EWB and E-invoice systems:
a) The Net Sale Value (i.e., the actual transaction value / commercial consideration) shall be
reported in the taxable value field.
b) The tax amount shall be computed strictly in accordance with the RSP-based valuation
formula, as prescribed under the law.
c) The total invoice value shall be reported as the sum of the Net Sale Value and the tax
amount.

4.2. Similarly for supplies covered under RSP-based valuation, taxpayers are advised to report
invoice details in the following manner in GSTR-1/1A/IFF Forms:
a) The Net Sale Value (i.e., the actual transaction value / commercial consideration) shall be
reported in the taxable value field.
b) The tax amount shall be computed strictly in accordance with the RSP-based valuation
formula, as prescribed under the law. However, in case, the GSTR-1 reflects the system calculated tax amount that is different from the tax amount leviable, the same may be edited to report the correct tax amount leviable under RSP-
based valuation in accordance with the notification.
c) The total invoice value shall be reported as the sum of the Net Sale Value and the tax
amount.
5. Reporting Mechanism
In order to facilitate seamless generation of e-Invoice, e-Way Bill and GSTR-1/1A/IFF for RSP
based supplies, it has been decided that:
a) Taxpayers are required to report the Net Sale Value in the taxable value field. The tax amount
shall be reported in accordance with the RSP-based valuation formula, and the total invoice
value shall be reported as the sum of the Net Sale Value and the tax amount.
All the above three fields shall be self-assessed, self-calculated, and correctly furnished by the
taxpayer, and the accuracy thereof shall be duly verified prior to submission. System-based
computation, wherever applicable would be required to be corrected as suggested above by the
taxpayer.
b) The above reporting method is being extended only for the HSNs notified vide the aforesaid
notifications. This reporting mechanism is only devised as a trade facilitation measure, without
any dilution of the statutory provisions or legal requirements prescribed under the GST law.
6. Advisory to Stakeholders
In this regard, the following is advised:
a) Taxpayers shall ensure that the taxable value is computed strictly in accordance with the
notified RSP-based valuation formula, and that tax is discharged on such taxable value. For
the purposes of reporting in the e-Invoice e-Way Bill systems and GSTR-1/1A/IFF the Net Sale

Value (commercial consideration) shall be reported in the taxable value field, as explained
above.
b) Due care shall be exercised to correctly identify and classify notified goods, and to apply
RSP-based valuation only in cases where the same is statutorily applicable.


Disclaimer – This advisory has been prepared solely for educational and informational purposes
and does not constitute legal advice. Taxpayers are advised to rely on the relevant statutory
provisions for meeting their compliance requirements. For all official or legal purposes,
reference shall be made to the applicable provisions of the GST laws, rules, and notifications

Click Link For detailed:
Master Codes: https://einvoice.gst.gov.in/einvoice/...
Notifications: https://einvoice.gst.gov.in/einvoice/...

Grievance Redressal Portal: https://selfservice.gstsystem.in/

For Latest News and Updates: https://einvoice.gst.gov.in/einvoice/...