Tobacco excise duty will replace the GST cess with steep product specific rates, including cigarettes, cigars and chewing tobacco.
The legislation allows imposition of higher excise duty on tobacco and related products after the GST compensation cess ends, making central excise the principal rate setting mechanism; specified rates include 60-70% on unmanufactured tobacco, 25% or Rs 5,000 per 1,000 sticks for cigars and cheroots, Rs 2,700-11,000 per 1,000 sticks for cigarettes by size and filter, and Rs 100 per kg for chewing tobacco.

Tobacco taxation changes propose excise duty replacement of GST cess, prompting calls for public health measures and scrutiny.
The Central Excise (Amendment) Bill, 2025 would replace the GST compensation cess on tobacco with excise duty, setting duties such as 60-70% on unmanufactured tobacco, Rs 2,700-4,500 per 1,000 sticks for specified cigarette lengths, and 25% or Rs 5,000 per 1,000 sticks for cigars and cheroots; parliamentary debate criticised the measure as revenue-focused, urged committee scrutiny, raised risks to farmers, illegal trade, the need to curb surrogate advertising, and called for excise revenues to fund tobacco-related healthcare.

DRI releases Smuggling in India Report and vows stronger tech-driven enforcement and global partnerships against illicit trade.
DRI, as India's apex anti-smuggling agency, emphasized protection of the economic borders and enabling honest taxpayers to trade with dignity while making land, waterway, and air routes impractical for illegal trade. Leadership urged continued reliance on technology, risk management tools, and global partnerships to dismantle smuggling syndicates and disrupt illicit funds. DRI released the Smuggling in India Report 2024-25 outlining trends, enforcement achievements, emerging challenges, and policy recommendations, and highlighted international cooperation through the Regional Customs Enforcement Meeting.

India's GDP forecast raised to 7.4% as GST reforms and stronger consumer spending boost growth expectations.
Fitch raised India's FY2025-26 GDP forecast to 7.4% due to stronger private consumer spending and recent GST reforms that cut rates on about 375 items, making most consumption goods cheaper. Falling consumer price inflation and lower food prices give scope for an additional policy rate cut to 5.25% and further cash reserve ratio reductions, while growth is expected to slow in the next fiscal year with private investment recovering only in its second half.

Tobacco excise duty reintroduced to replace the GST compensation cess, with revenues shared with states to maintain tax incidence.
The government amended the Central Excise Act to reintroduce excise duty on tobacco and tobacco products-specific rates for cigarettes and percentage levies on tobacco by weight-replace the GST compensation cess once it ends, and ensure excise receipts enter the divisible pool to be redistributed to states per Finance Commission recommendations.

Tobacco excise duty to increase after GST compensation cess ends, with a substituted tariff table setting new specific and percentage rates.
The Central Excise (Amendment) Bill, 2025, substitutes the tariff table for tobacco in the Fourth Schedule to the Central Excise Act to enable higher excise duties on tobacco and related products once the GST compensation cess ends, specifying revised percentage and specific rates for unmanufactured tobacco, cigars, cigarettes by length/filter, and chewing tobacco.

Tobacco tax overhaul replaces GST cess with a revised excise regime and specified duties on cigarettes, cigars and unmanufactured tobacco.
The Central Excise (Amendment) Bill, 2025 replaces the GST compensation cess on tobacco with a revised excise regime: unmanufactured tobacco at 60-70% excise; cigars and cheroots at 25% or Rs 5,000 per 1,000 sticks (whichever is higher); cigarettes at Rs 2,700 per 1,000 sticks for lengths up to 65 mm without filters and Rs 4,500 per 1,000 sticks for lengths up to 70 mm, replacing the current 28% GST plus variable cess.

Tobacco tax overhaul could raise duties but risks harming farmers and workers without clear transition measures.
The Central Excise (Amendment) Bill, 2025 would replace the GST compensation cess on specified tobacco products with a framework allowing higher taxes; MPs warned that steep duty hikes could harm farmers, bidi rollers and processing-chain workers, increase counterfeiting and illicit markets, and urged calibrated tax design, transitional measures for alternative livelihoods, and further scrutiny such as referral to a select committee.

GST reform bill returned to seek parliamentary enactment, converting ordinance provisions into law to clarify applicability and reduce compliance.
The Rajya Sabha returned to the Lok Sabha a bill replacing an Ordinance to implement GST 2.0 reforms, converting emergency provisions into statute to clarify applicability, restore revenue flows, and benefit businesses. The bill introduces a track and trace system, reduces compliance burdens, increases transparency, and reconfigures tax slabs by abolishing the highest rate and reallocating items to lower rates to alter tax incidence and support economic recovery.

Parliamentary session disrupted over demand for debate on special electoral roll revision and bills repurposing sin goods levies.
Proceedings were disrupted by opposition demands for immediate debate on the Special Intensive Revision of electoral rolls; the government said it was not averse to discussion but would not set a timeline, while the Rajya Sabha Chair disallowed several notices leading to a walkout. The Lok Sabha saw adjournments as the government introduced bills to repurpose levies on sin goods ahead of the phaseout of the GST compensation cess and passed the Manipur GST Bill replacing an ordinance for GST 2.0 reforms.

GST collections fell to Rs 1.70 lakh crore after rate rationalisation and compensation cess changes, while consumption rose.
GST revenues fell to Rs 1.70 lakh crore in November following the move to two primary GST rates and the restriction of compensation cess to tobacco and pan masala, with compensation cess excluded from headline gross GST figures as a transitory measure tied to pandemic era loan repayment; taxable turnover rose year on year, net collections after refunds held at Rs 1.52 lakh crore, and state level and sectoral divergences underline the need for targeted policy responses.

GST concession on car purchases for persons with disabilities is challenged after eligibility narrowing and scheme discontinuation.
The petition challenges the narrowing and discontinuation of a concessional GST regime for cars for persons with disabilities, alleging that authorities rejected a concession certificate application by limiting eligibility to permanent orthopaedic disabilities, issued inconsistent policy positions before courts, and later ceased issuance of exemption certificates; the petitioner seeks restoration of the concessionary framework in conformity with Section 41 of the Rights of Persons with Disabilities Act and relief under Article 32.

Stock markets retreated from lifetime highs amid profit-taking, FII outflows, and fading rate-cut expectations after stronger GDP.
Benchmarks pulled back from record intraday highs as profit-taking and FII outflows offset earlier gains; fading expectations of a near-term rate cut after stronger Q2 GDP, a weaker rupee, and slower GST collections were cited as primary reasons, while sectoral divergence, muted mid/smallcap moves, and an easing manufacturing PMI added to the cautious market tone.

Manipur GST Bill aligns state law with GST Council's rate rationalisation, replacing an earlier Ordinance.
Manipur enacted The Manipur Goods and Services Tax (Second Amendment) Bill, 2025 to replace an Ordinance issued during President's rule and to give effect to the GST Council's rationalisation of tax slabs and related amendments to the Central Goods and Services Tax Act, 2017, thereby aligning the state Act with central changes and avoiding repugnancy.

GST collections rose slightly to Rs 1.70 lakh crore as domestic revenue fell but import receipts grew.
Gross Goods and Services Tax collections rose 0.7% to Rs 1.70 lakh crore in November, while domestic GST revenues declined 2.3% to about Rs 1.24 lakh crore following the reduction of rates on 375 items; import of goods receipts grew 10.2% to Rs 45,976 crore, partially offsetting the domestic decline.

Manipur GST amendment bill passed amid protests over electoral roll revision during disrupted Winter session.
Parliament passed legislation to implement amendments to the Goods and Services Tax framework in Manipur, replacing an ordinance and exercising parliamentary lawmaking powers while the State is under President's Rule. The Manipur GST amendment was introduced and passed amid opposition protests demanding a debate on the Special Intensive Revision of electoral rolls, which disrupted proceedings and caused multiple adjournments during the Winter session's opening day. Additional fiscal bills on excise duty and a new cess were introduced, and supplementary demands for grants for 2025-2026 were tabled.

Manipur GST bill replaces an ordinance to implement consolidated GST slabs and a 40% ultra luxury rate.
The Manipur Goods and Services Tax (Second Amendment) Bill, 2025 replaces the October 7, 2025 ordinance to give statutory effect to the 56th GST Council's rate changes implemented on September 22. The Bill amends State GST law to reflect consolidation of multiple slabs into 2 per cent, 5 per cent and 18 per cent rates and to provide for a 40 per cent rate on ultra-luxury items.

Lok Sabha adjourns amid protests over special intensive revision of electoral rolls; three finance bills introduced.
Lok Sabha was adjourned amid Opposition protests demanding debate on the Special Intensive Revision of electoral rolls; the Election Commission announced SIR for multiple territories and states, with separate revision in Assam called 'Special Revision'. During a brief sitting the Finance Minister introduced three revenue measures: the Central Excise (Amendment) Bill, 2025 (excise on tobacco), the Health Security and National Security Cess Bill, 2025 (new pan masala cess), and the Manipur GST (Second Amendment) Bill, 2025 following an ordinance while the state was under President's Rule.

RBI may cut the repo rate by 25 bps as inflation stays subdued despite strong GDP growth.
The Monetary Policy Committee meeting on December 3-5, 2025 will decide the repo rate; subdued CPI inflation below the 2 percent lower bound and muted core inflation have given room for a potential 25 basis point cut after cumulative easing to 5.5 percent, while contrasting views cite robust GDP growth, fiscal consolidation and GST rationalisation as reasons to maintain the policy rate and a neutral stance.

Cross LoC trade treated as intra state trade under GST; parties must now pursue CGST statutory remedies.
Cross LoC trade is treated as intra state trade under the GST Act because Pakistan Occupied Kashmir territories are regarded as part of the erstwhile State of Jammu & Kashmir, so suppliers' locations and places of supply fell within the then State; parties receiving show cause notices challenging territorial and supply classification are to avail statutory remedies under the CGST Act, 2017. Claims that transactions were barter or zero rated were asserted but did not change the territorial GST character.