Official Legislative Archive

The Central Excise (Amendment) Bill, 2025

SECTION Section 1

Untitled Section

•5

•AS INTRODUCED IN LOK SABHA

•Bill No. 143 of 2025

•THE CENTRAL EXCISE (AMENDMENT) BILL, 2025

•A

•BILL

•further to amend the Central Excise Act, 1944.

•BE it enacted by Parliament in the Seventy-sixth Year of the Republic of India

•as follows:—

SECTION Section 2

Untitled Section

1.(1) This Act may be called the Central Excise (Amendment) Act, 2025.

(2)It shall come into force on such date as the Central Government may, by

•notification in the Official Gazette, appoint.

•Short title and

commencement.

•Amendment of

•Fourth Schedule.

SECTION Section 3

Untitled Section

2.In the Central Excise Act, 1944, in the Fourth Schedule, in Section IV, for

•the Table occurring under the sub -heading “Supplementary Notes”, the following

•Table shall be substituted, namely:––

•‘Tariff item Description of goods Unit Rate of duty

(1)(2) (3) (4)

•2401 Unmanufactured Tobacco; Tobacco Refuse

•2401 10 - Tobacco, not stemmed or stripped:

•2401 10 10 --- Flue cured virginia tobacco kg. 70%

•2401 10 20 --- Sun cured country (natu) tobacco kg. 70%

•2401 10 30 --- Sun cured virginia tobacco kg. 70%

•2401 10 40 --- Burley tobacco kg. 70%

•2401 10 50 --- Tobacco for manufacture of biris,

•not stemmed

kg.70%

•2401 10 60 --- Tobacco for manufacture of

•chewing tobacco

kg.70%

•2401 10 70 --- Tobacco for manufacture of cigar

•and cheroot

kg.70%

•2401 10 80 --- Tobacco for manufacture of hookah

•tobacco

kg.70%

•2401 10 90 --- Other kg. 70%

•2401 20 - Tobacco, partly or wholly stemmed or stripped:

•2401 20 10 --- Flue cured virginia tobacco kg. 70%

•2401 20 20 --- Sun cured country (natu) tobacco kg. 70%

•2401 20 30 --- Sun cured virginia tobacco kg. 70%

•2401 20 40 --- Burley tobacco kg. 70%

•2401 20 50 --- Tobacco for manufacture of biris kg. 70%

•2401 20 60 --- Tobacco for manufacture of

•chewing tobacco

kg.70%

•2401 20 70 --- Tobacco for manufacture of cigar

•and cheroot

kg.70%

•2401 20 80 --- Tobacco for manufacture of

•hookah tobacco

kg.70%

•2401 20 90 --- Other kg. 70%

•2401 30 00 - Tobacco refuse kg. 60%

•2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of

•tobacco substitutes

•2402 10 - Cigars, cheroots and cigarillos, containing tobacco:

•2402 10 10 --- Cigar and cheroots Tu 25% or

Rs.5000 per

•thousand

•whichever is

•higher

•5

•10

•15

•20

•25

•30

•35

•40

•1 of 1944.

•2

•5

•10

•15

•20

•25

•30

•35

•40

•45

(1)(2) (3) (4)

•2402 10 20 --- Cigarillos Tu 25% or

Rs.5000 per

•thousand

•whichever is

•higher

•2402 20 - Cigarettes, containing tobacco:

•2402 20 10 --- Other than filter cigarettes, of length

•not exceeding 65 millimetres

•Tu Rs. 2700 per

•thousand

•2402 20 20 --- Other than filter cigarettes, of length

•exceeding 65 millimetres but not

•exceeding 70 millimetres

•Tu Rs. 4500 per

•thousand

•2402 20 30 --- Filter cigarettes of length (including

•the length of the filter, the length of

•filter being 11 millimetres or its

•actual length, whichever is more)

•not exceeding 65 millimetres

•Tu Rs. 3000 per

•thousand

•2402 20 40 --- Filter cigarettes of length (including

•the length of the filter, the length of

•filter being 11 millimetres or its

•actual length, whichever is more)

•exceeding 65 millimetres but not

•exceeding 70 millimetres

•Tu Rs. 5200 per

•thousand

•2402 20 50 --- Filter cigarettes of length (including

•the length of the filter, the length of

•filter being 11 millimetres or its

•actual length, whichever is more)

•exceeding 70 millimetres but not

•exceeding 75 millimetres

•Tu Rs. 7000 per

•thousand

•2402 20 90 --- Other Tu Rs. 11000

•per

•thousand

•2402 90 - Other:

•2402 90 10 --- Cigarettes of tobacco substitutes Tu Rs. 5000 per

•thousand

•2402 90 20 --- Cigarillos of tobacco substitutes Tu 14% or

Rs.5000 per

•thousand

•whichever is

•higher

•2402 90 90 --- Other Tu 14% or

Rs.5000 per

•thousand

•whichever is

•higher

•3

(1)(2) (3) (4)

•2403 Other manufactured tobacco and manufactured tobacco

•substitutes; “Homogenised” or “Reconstituted” tobacco;

•Tobacco extracts and essences

•- Smoking tobacco, whether or not containing tobacco

•substitute in any proportion;

•2403 11 -- Water pipe tobacco specified in Sub -heading Note to this

SECTION Section 4

Untitled Section

•Chapter:

•2403 11 10 --- Hookah or gudaku tobacco kg. 40%

•2403 11 90 --- Other kg. 40%

•2403 19 -- Other:

•2403 19 10 --- Smoking mixtures for pipes and

•cigarettes

kg.325%

•--- Biris:

•2403 19 21 ---- Other than paper rolled biris,

•manufactured without the aid of

•machine

•Tu 10%

•2403 19 29 ---- Other Tu 10%

•2403 19 90 --- Other kg. 22%

•- Other:

•2403 91 00 -- “Homogenised” or “reconstituted”

•tobacco

kg.70%

•2403 99 -- Other:

•2403 99 10 --- Chewing tobacco kg. 100%

•2403 99 20 --- Preparations containing chewing

•tobacco

kg.100%

•2403 99 30 --- Jarda scented tobacco kg. 100%

•2403 99 40 --- Snuff kg. 70%

•2403 99 50 --- Preparations containing snuff kg. 70%

•2403 99 60 --- Tobacco extracts and essence kg. 70%

•2403 99 70 --- Cut-tobacco kg. 10%

•2403 99 90 --- Other kg. 125%

•2404 Products containing tobacco, reconstituted tobacco, nicotine,

•or tobacco or nicotine substitutes, intended for inhalation

•without combustion; other nicotine containing products

•intended for the intake of nicotine into the human body

•- Products intended for inhalation without combustion

•5

•10

•15

•20

•25

•30

•35

•4

•5

(1)(2) (3) (4)

•2404 11 00 -- Containing tobacco or reconstituted

•tobacco

kg.100%

•2404 12 00 -- Other, containing nicotine kg. …..

•2404 19 00 -- Other kg. 100%

•- Other:

•2404 91 00 -- For oral application kg. …..

•2404 92 00 -- For transdermal application kg. …..

•2404 99 00 -- Other kg. …..’.

•5

•6

•STATEMENT OF OBJECTS AND REASONS

•With the introduction of the Goods and Services Tax (GST) on 1st July, 2017,

•the Central Excise Act, 1944 was repealed by section 174 of the Central Goods and

•Services Tax Act, 2017, except in respect of goods listed under Entry 84 of List I of

•the Seventh Schedule to the Constitution. This includes tobacco and tobacco

products.With the levy of GST and compensation cess on tobacco and tobacco

•products, the rates of Central Excise duties were re duced significantly to allow for

•the levy of compensation cess without large impact on their tax incidence.

SECTION Section 5

Untitled Section

2.Compensation cess levied on tobacco and tobacco products, wherever

•applicable, will be discontinued once interest payment obligations and loan

•liabilities under the compensation cess account are completely discharged. In order

•to give the Government, the fiscal space to increase the rate of central excise duty

•on tobacco and tobacco products so as to protect tax incidence, it is imperative to

•amend the table in Section IV of the Fourth Schedule to the said Act.

SECTION Section 6

Untitled Section

3.Accordingly, it is proposed to introduce the Central Excise (Amendment)

•Bill, 2025 in Parliament to substitute the table containing the tariff rates of tobacco

•and tobacco products in Sect ion IV of the Fourth Schedule to the Central Excise

•Act, 1944.

SECTION Section 7

Untitled Section

4.The Bill seeks to achieve the above objectives.

•NEW DELHI; NIRMALA SITHARAMAN.

•The 28th November, 2025.

•6

•7

•FINANCIAL MEMORANDUM

•The Bill , if enacted, will not involve any expenditure, either recurring or

•non-recurring in nature, from the Consolidated Fund of India.

•7

•ANNEXURE

•EXTRACT FROM THE CENTRAL EXCISE ACT, 1944

•* * * * *

SECTION Section 8

Untitled Section

•CHAPTER IV

•TRANSPORT BY SEA

•THE FOURTH SCHEDULE

•[Refer section 2(d) and 2(f)(ii)]

•* * * * *

•SECTION IV

•TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES;

•PRODUCTS, WHETHER OR NOT CONTAINING NICOTINE, INTENDED

•FOR INHALATION WITHOUT COMBUSTION, OTHER NICOTINE

•CONTAINING PRODUCTS INTENDED FOR THE INTAKE OF NICOTINE

•INTO THE HUMAN BODY

•* * * * *

•SUPPLEMENTARY NOTES

•* * * * *

•‘Tariff item Description of goods Unit Rate of duty

(1)(2) (3) (4)

•2401 Unmanufactured Tobacco; Tobacco Refuse

•2401 10 - Tobacco, not stemmed or stripped:

•2401 10 10 --- Flue cured virginia tobacco kg. 64%

•2401 10 20 --- Sun cured country (natu) tobacco kg. 64%

•2401 10 30 --- Sun cured virginia tobacco kg. 64%

•2401 10 40 --- Burley tobacco kg. 64%

•2401 10 50 --- Tobacco for manufacture of biris,

•not stemmed

kg.64%

•2401 10 60 --- Tobacco for manufacture of

•chewing tobacco

kg.64%

•2401 10 70 --- Tobacco for manufacture of cigar

•and cheroot

kg.64%

•2401 10 80 --- Tobacco for manufacture of

•hookah tobacco

kg.64%

•2401 10 90 --- Other kg. 64%

•2401 20 - Tobacco, partly or wholly stemmed or stripped:

•2401 20 10 --- Flue cured virginia tobacco kg. 64%

•2401 20 20 --- Sun cured country (natu) tobacco kg. 64%

•2401 20 30 --- Sun cured virginia tobacco kg. 64%

•2401 20 40 --- Burley tobacco kg. 64%

•8

•9

(1)(2) (3) (4)

•2401 20 50 --- Tobacco for manufacture of biris kg. 64%

•2401 20 60 --- Tobacco for manufacture of

•chewing tobacco

kg.64%

•2401 20 70 --- Tobacco for manufacture of cigar

•and cheroot

kg.64%

•2401 20 80 --- Tobacco for manufacture of

•hookah tobacco

kg.64%

•2401 20 90 --- Other kg. 64%

•2401 30 00 - Tobacco refuse kg. 50%

•2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of

•tobacco substitutes

•2402 10 - Cigars, cheroots and cigarillos, containing tobacco:

•2402 10 10 --- Cigar and cheroots Tu 12.5% or

Rs.4006

•per

•thousand,

•whichever

•is higher

•2402 10 20 --- Cigarillos Tu 12.5% or

Rs.4006

•per

•thousand,

•whichever

•is higher

•2402 20 - Cigarettes, containing tobacco:

•2402 20 10 --- Other than filter cigarettes, of length

•not exceeding 65 millimetres

•Tu Rs 200 per

•thousand

•2402 20 20 --- Other than filter cigarettes, of length

•exceeding 65 millimetres but not

•exceeding 70 millimetres

•Tu Rs 250 per

•thousand

•2402 20 30 --- Filter cigarettes of length (including

•the length of the filter, the length of

•filter being 11 millimetres or its

•actual length, whichever is more)

•not exceeding 65 millimetres

•Tu Rs 440 per

•thousand

•2402 20 40 --- Filter cigarettes of length (including

•the length of the filter, the length of

•filter being 11 millimetres or its

•actual length, whichever is more)

•exceeding 65 millimetres but not

•exceeding 70 millimetres

•Tu Rs 440 per

•thousand

•2402 20 50 --- Filter cigarettes of length (including

•the length of the filter, the length of

•filter being 11 millimetres or its

•actual length, whichever is more)

•exceeding 70 millimetres but not

•exceeding 75 millimetres

•Tu Rs 545 per

•thousand

•10

(1)(2) (3) (4)

•2402 20 90 --- Other Tu Rs. 735 per

•thousand

•2402 90 - Other:

•2402 90 10 --- Cigarettes of tobacco substitutes Tu Rs. 600 per

•thousand

•2402 90 20 --- Cigarillos of tobacco substitutes Tu 12.5% or

Rs.4006

•per

•thousand,

•whichever

•is higher

•2402 90 90 --- Other Tu 12.5% or

Rs.4006

•per

•thousand,

•whichever

•is higher

•2403 Other manufactured tobacco and manufactured tobacco

•substitutes; “Homogenised” or “Reconstituted” tobacco;

•Tobacco extracts and essences

•- Smoking tobacco, whether or not containing tobacco

•substitute in any proportion;

•2403 11 -- Water pipe tobacco specified in Sub-heading Note to this

SECTION Section 9

Untitled Section

•Chapter:

•2403 11 10 --- Hookah or gudaku tobacco kg. 25%

•2403 11 90 --- Other kg. 60%

•2403 19 -- Other:

•2403 19 10 --- Smoking mixtures for pipes and

•cigarettes

kg.60%

•--- Biris:

•2403 19 21 ---

•-

•Other than paper rolled biris,

•manufactured without the aid of

•machine

•Tu Rs. 1.00 per

•thousand

•2403 19 29 ---

•-

•Other Tu Rs.2.00 per

•thousand

•2403 19 90 --- Other kg. 25%

•2403 91 00 -- “Homogenised” or “reconstituted”

•tobacco

kg.25%

•2403 99 -- Other:

•2403 99 10 --- Chewing tobacco kg. 25%

•2403 99 20 --- Preparations containing chewing

•tobacco

kg.25%

•2403 99 30 --- Jarda scented tobacco kg. 100%

•11

(1)(2) (3) (4)

•2403 99 40 --- Snuff kg. 25%

•2403 99 50 --- Preparations containing snuff kg. 25%

•2403 99 60 --- Tobacco extracts and essence kg. 25%

•2403 99 70 --- Cut-tobacco kg. Rs. 70 per

kg.

•2403 99 90 --- Other kg. 25%

•2404 Products containing tobacco, reconstituted tobacco, nicotine, or

•tobacco or nicotine substitutes, intended for inhalation without

•combustion; other nicotine containing products intended for the

•intake of nicotine into the human body

•- Products intended for inhalation without combustion

•2404 11 00 -- Containing tobacco or reconstituted

•tobacco

kg.81%

•2404 12 00 -- Other, containing nicotine kg. …..

•2404 19 00 -- Other kg. 81%

•- Other:

•2404 91 00 -- For oral application kg. …..

•2404 92 00 -- For transdermal application kg. …..

•2404 99 00 -- Other kg. …..’.

•LOK SABHA

•————

•A

•BILL

•further to amend the Central Excise Act, 1944.

•————

•(Smt. Nirmala Sitharaman, Minister of Finance and Corporate Affairs)

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