ITC Under Pressure as GST Council Retains 28% Tax, Raises Tobacco Cess to 40%

🚬 The GST Council has retained 28% GST on tobacco products while increasing the compensation cess to 40%, effective September 22, 2025. The move will impact

, which derives a major share of profits from cigarettes, as margin pressure persists. While everyday FMCG products like toothpaste, namkeens, cheese, and shampoos enjoy reduced 5% GST, tobacco items including cigarettes, pan masala, and gutkha remain under a higher tax regime.