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Tobacco and related products valuation set at retail sale price less tax under new GST rules. The amendment inserts a valuation rule deeming specified tobacco and nicotine products to be valued at the retail sale price declared on the package less the applicable tax, with tax computed by the formula: Tax amount = (Retail sale price x tax rate) / (100 + sum of applicable tax rate). Definitions establish retail sale price as the maximum declared packaged price including all taxes and address multiple or altered declared prices. The rule takes effect 1 February 2026 and rule 86B is amended to exempt non-manufacturer registered persons for such goods when the supplier paid tax on the retail sale price.
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<h1>Tobacco and related products valuation set at retail sale price less tax under new GST rules.</h1> The amendment inserts a valuation rule deeming specified tobacco and nicotine products to be valued at the retail sale price declared on the package less the applicable tax, with tax computed by the formula: Tax amount = (Retail sale price x tax rate) / (100 + sum of applicable tax rate). Definitions establish retail sale price as the maximum declared packaged price including all taxes and address multiple or altered declared prices. The rule takes effect 1 February 2026 and rule 86B is amended to exempt non-manufacturer registered persons for such goods when the supplier paid tax on the retail sale price.