New Delhi, Dec. 3 -- The Lok Sabha on Wednesday passed the Central Excise (Amendment) Bill, 2025, which seeks to replace the existing GST compensation cess on tobacco products with revised central excise duties.
The bill, introduced on December 1, amends the Central Excise Act, 1944, to adjust duty rates on tobacco and related products while discontinuing the compensation cess once liabilities are cleared.
Since the rollout of the Goods and Services Tax (GST) in 2017, many central excise duties were repealed except for select goods like tobacco, which remain subject to GST, compensation cess, and excise duty. The compensation cess was introduced to compensate states for revenue losses due to GST implementation.
Finance Minister Nirmala S...