The Central Government has issued Notification No. 19/2025–Central Tax, dated 31st December 2025, providing for valuation of supply of certain specified goods on the basis of declared Retail Sale Price (RSP) under the Central Goods and Services Tax Act, 2017. The notification has been issued by the Ministry of Finance, Department of Revenue, through the Central Board of Indirect Taxes and Customs (CBIC) and has been published in the Gazette of India (Extraordinary) vide G.S.R. 949(E).
The notification amends Notification No. 49/2023–Central Tax dated 29th September 2023 and inserts a new clause to prescribe valuation norms for supplies where retail sale price is declared on the packaged goods. The amendment has been made in exercise of the powers conferred under sub-section (5) of section 15 of the CGST Act, 2017, on the recommendations of the GST Council.
The specified goods covered under the notification include pan masala, unmanufactured tobacco (other than tobacco leaves), cigars, cheroots, cigarillos and cigarettes, other manufactured tobacco and tobacco substitutes, as well as products containing tobacco or nicotine substitutes intended for inhalation without combustion. These goods fall under tariff headings 2106, 2401, 2402, 2403 and 2404 of the Customs Tariff Act, 1975.
For the purpose of valuation, the retail sale price has been defined as the maximum price declared on the package, inclusive of all taxes, duties, cess or surcharges, by whatever name called. Where more than one RSP is declared, the highest of such prices shall be deemed to be the retail sale price. Any alteration in the RSP at any stage before, during or after supply shall also be treated as the applicable retail sale price for valuation.
The notification further clarifies that where different retail sale prices are declared for different areas, each such price shall apply for valuation in the respective area of sale.
The provisions of Notification No. 19/2025–Central Tax shall come into force with effect from 1st February 2026, ensuring uniformity, transparency and certainty in GST valuation for the notified goods.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/Notification-No-19-2025-of-Central-Tax.pdf
