New Delhi, Dec. 31 -- The Centre on Wednesday issued an order giving effect to a new law levying a health and national security cess on tobacco and its products in place of the goods and services tax (GST) compensation cess, effective from 1 February. Separately, it also withdrew the compensation cess on tobacco products from the same date.

The move suggests that tobacco and products will come under the new tax regime comprising excise duty, 40% GST, and the health and national security cess, as the government discontinues the existing 28% GST slab and the compensation cess on them as part of a tax restructuring.

The revamp aims to maintain tax incidence on these harmful substances largely at the current high levels, even after the GST ...