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Advisory on RSP-Based Valuation of Notified Tobacco Goods under GST
GST
Dated:- 23-1-2026

An advisory on reporting of taxable value and tax liability under RSP-based valuation in e-Invoice, e-Way Bill and GSTR-1 / GSTR-1A / IFF has been issued for the information and guidance of taxpayers. The advisory may be accessed through the link provided below.
Advisory on RSP-Based Valuation of Notified Tobacco Goods under GST
1. Background:
Vide Notification Nos. 19/2025-Central Tax and 20/2025-Central Tax, both dated 31.12.2025, Retail Sale Price (RSP)-based valuation for specified tobacco and tobacco-related products, has been prescribed with effect from 01.02.2026.
The said notifications cover the following HSN codes and descriptions:
S. No.
Chapter / Heading / Sub-heading
Description of Goods
1
2106 90 20
Pan masala
2
2401
Unmanufactured tobacco; tobacco refuse (other than tobacco leaves)
3
2402
Cigars, cheroots, cigarillos and cigarettes, of tobacco or of

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licable taxes) / (100 + Sum of applicable tax rate)
* Deemed Taxable Value = RSP − Tax Amount
Thus, GST liability is determined with reference to RSP, irrespective of the actual sale price.
2.2. For ease of reference, an illustrative tax invoice is provided below.
A. The item particulars are as follows (RSP-based notified goods)
Field
Value
Relevant HSN (RSP-based notified goods)
2403
MRP / RSP per pack (Rs.)
100
Total packs
1,000
Total RSP (Rs.)
1,00,000
B. Statutory computation as per RSP formula (IGST @ 40%)
Under RSP-based valuation, the deemed taxable value and tax amount are required to be derived from the RSP (tax-inclusive).
Particulars
Computation
Amount (Rs.)
Total RSP (aggregate)
100 x 1,000
1,00,000.00
Tax amount (IGST @ 40%)
(1,00,000 x 40) / (100 + 40)
28,571.43
Deemed taxable value (as per RSP formula)
Total RSP − Tax amount
71,428.57
C. Commercial transaction values (actual consideration)
Particulars
Amo

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ng that “the sum of taxable value and tax amount cannot be greater than the total invoice value.”
However, in the illustrated case of RSP-based valuation above, the taxable value works out to Rs.71,428.57 and the tax amount to Rs.28,571.43, while the commercial transaction value (net sale value) is Rs.60,000, the total invoice value, computed as net sale value plus tax, would be Rs.88,571.43. In such cases, reporting the deemed taxable value derived from RSP would result in the sum of taxable value and tax amount exceeding the total invoice value.
4.Reporting Guidance for RSP-based Valuation Goods
4.1. In view of the above, for supplies covered under RSP-based valuation, taxpayers are advised to report invoice details in the following manner in EWB and E-invoice systems:
a) The Net Sale Value (i.e., the actual transaction value / commercial consideration) shall be reported in the taxable value field. Accordingly, Rs.60,000.00 shall be reported as the taxable value, as illustrat

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ula, as prescribed under the law. Accordingly, as shown in the illustration above, a tax amount of Rs.28,571.43 shall be reported in the tax amount field, which is derived based on the deemed taxable value of Rs.71,428.57 computed as per the RSP-based formula. However, in case, the GSTR-1 reflects the system calculated tax amount that is different from the tax amount leviable, the same may be edited to report the correct tax amount leviable under RSP- based valuation in accordance with the notification i.e., as illustrated above, a tax amount of Rs.28,571.43 .
c) The total invoice value shall be reported as the sum of the Net Sale Value and the tax amount. Accordingly, the total invoice value shall be Rs.88,571.43 (Rs.60,000.00 + Rs.28,571.43).
5. Reporting Mechanism
In order to facilitate seamless generation of e-Invoice, e-Way Bill and GSTR-1/1A/IFF for RSP-based supplies, it has been decided that:
a) Taxpayers are required to report the Net Sale Value in the taxable value field

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Elitecon International Strengthens Board with the Appointment of Veteran IAS and IRS Officers as Independent Directors
GST
Dated:- 23-1-2026
PTI
New Delhi [India], January 23: Elitecon International Limited (BSE: 539533), a leading diversified FMCG enterprise, announced the appointment of three distinguished professionals – Dr. P.V. Ramesh (Retd. IAS), Mr. Edward Michael Bourgoin, and Mr. Susanta Kumar Panda (Retd. IRS) as Independent Directors to its Board. These appointments reflect Elitecon’s continued commitment to strong corporate governance, transparency, and the highest standards of ethical leadership. The appointed Independent Directors bring decades of experience spanning public administration, global business, and fi

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energy, and life sciences sectors. He has held board positions and senior advisory roles across multiple global enterprises, bringing deep expertise in corporate strategy, fundraising, and performance transformation. His global outlook and operational insight will contribute significantly to Elitecon’s international growth and organisational excellence.
Mr. Susanta Kumar Panda (Retd. IRS), former Member of the Central Board of Indirect Taxes and Customs (CBIC) and Special Secretary to the Government of India, brings nearly four decades of experience in taxation, fiscal governance, and regulatory policy. Having also served with the Enforcement Directorate and Customs, Excise & Service Tax Appellate Tribunal (CESTAT), he offers deep expe

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on International, said: “The induction of such highly respected professionals to our Board underscores Elitecon’s commitment to strengthening governance and driving sustainable growth. The collective expertise and integrity of Dr Ramesh, Mr Bourgoin, and Mr Panda will bring immense value to our organisation as we continue our journey toward becoming a globally respected FMCG enterprise.” With the addition of these Independent Directors, Elitecon International further strengthens its Board oversight and governance framework, enhancing strategic guidance and regulatory rigor as the company pursues growth opportunities. The expanded Board structure underscores Elitecon International’s focus on long-term value creation, responsible busi

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Haryana Electricity Commission issues directives to improve service delivery in power sector
GST
Dated:- 23-1-2026
PTI
Chandigarh, Jan 23 (PTI) The Haryana Electricity Regulatory Commission (HERC) has issued directives to the state power utilities to improve service delivery, accountability, and institutional performance in the power sector.
HERC has issued three major directives to the state power utilities, mandating the implementation of a Consumer Satisfaction Index (CSI), the adoption of a Balanced Scorecard (BSC) framework, and ISO certification for all power utilities.
Chairman, HERC, Nand Lal Sharma, while chairing the 33rd meeting of the State Advisory Committee (SAC), directed that all decisions taken in SAC meetin

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to the sub-division, division, and utility levels, to ensure accountability and improved consumer interface.
To institutionalise target-driven performance and systemic improvement, the HERC Chairman directed implementation of a Balanced Scorecard system within four months.
The BSC is to be used as a strategic performance management tool to set clear targets and monitor outcomes across financial and non-financial parameters. Performance indicators will be tracked at all levels, from field functionaries to top management, covering areas such as consumer satisfaction, operational efficiency, safety, loss reduction, service quality and capacity building, with monthly reviews.
On standardisation of processes, the Commission noted tha

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the avoidable burden on consumers.
During the meeting, DHBVN Managing Director Vikram Singh informed that measures are being taken to further reduce Aggregate Technical and Commercial (AT&C) losses.
It was also noted that UHBVNL and DHBVNL have projected an Annual Revenue Requirement (ARR) of Rs 51,156.71 crore for the ensuing financial year.
The Commission expressed concern over increasing litigation in the power sector, particularly billing-related disputes, and directed utilities to adopt systemic corrective measures.
HERC also sought details of fatal electrical accidents and directed immediate remedial action, including addressing sagging overhead lines and unsafe conditions near transformers and exposed wiring.
On rooftop sol

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Goods and Services Tax on electricity regulatory commission fees denied as regulatory quasi-judicial activity; levy set aside.
Case-Laws
GST
Levy of GST on fees charged by electricity regulatory commissions examined: activities of tariff regulation, inter-state transmission regulation and licence issuance are statutory, regulatory and quasi-judicial functions and do not constitute 'business' or 'supply' in furtherance of business under the CGST definitions, and services rendered by a co

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Profiteering in real estate GST input tax credit passthrough found; developer to refund Rs 1.00 crore plus interest to buyers.
Case-Laws
GST
Profiteering resulting from failure to pass on increased input tax credit ratio (0.43 percentage points) was quantified at Rs. 1,00,67,677; this finding was accepted and the benefit is to be refunded, apportioned pro rata to 340 home buyers, the respondent having acknowledged the contravention. The respondent is required to refund the profiteered a

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GST rectification application permitted to proceed to appellate authority on condition of 50% cash deposit, attachment vacated thereafter
Case-Laws
GST
Rejection of a rectification application under the GST enactment was affirmed as not satisfactory to rectify the order; the HC granted liberty to the petitioner to approach the Appellate Authority provided the petitioner deposits 50% of the disputed tax in cash from its electronic cash register within thirty days, and on such compliance

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Statutory appeal under CGST Act allowed by condoning delay; assessment order quashed and matter remitted subject to deposit.
Case-Laws
GST
Permission to file a statutory appeal was considered by condoning a 478-day delay to determine admissibility; the court quashed the impugned assessment order and remitted the matter to the original authority for fresh adjudication on merits. The remand was made conditional on the petitioner depositing the entire tax amount confirmed in the assessment

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Input tax credit limitation under CGST Act reversed; refund application avenue preserved and bank account de-freeze directed
Case-Laws
GST
The challenge concerned entitlement to input tax credit (ITC) affected by the limitation regime: the claim was found barred under the limitation provision of the CGST Act but fell within the period preserved by the proviso permitting claims within an alternate prescribed period, resulting in quashing of the impugned order insofar as it denied ITC on

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Input tax credit adjustment under reverse charge requires adjudication before recovery; coercive recovery set aside and interest refunded.
Case-Laws
GST
The text clarifies that recovery without adjudication is permissible only where the taxpayer has clearly admitted tax liability in filed returns, and such admitted liability remains unpaid; consequently, coercive recovery cannot be invoked for alleged wrongful utilisation of input tax credit without first completing adjudicatory assessm

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Erroneous bank transfer and recovery under CGST/WBGST provisions: bank directed to restore mistakenly transferred funds to payer within one week
Case-Laws
GST
Dispute concerns recovery of funds erroneously transferred to a wrong beneficiary account and the applicability of CGST/WBGST provisions. HC examined bank report, affidavit of the added respondent and Ombudsman order, found transfer resulted from payers mistake (account digits mismatched) and that the unintended recipient disavowe

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ITC time limit under CGST Section 16 amendment and CBIC Circular leads to setting aside appeal and remand for decision
Case-Laws
GST
Question concerns the temporal and statutory effect of amendments to Section 16 of the CGST Act and related CBIC guidance on entitlement to input tax credit (ITC). The court acknowledged subsequent insertion of Section 16(5) and a CBIC Circular, held that those developments materially affect prior adjudication, set aside the earlier appellate order and rem

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IGST on ocean freight reverse charge clarified as retrospective by SC ruling, leading to successful rectification of prior demand.
Case-Laws
GST
Challenge concerns taxability of ocean freight under the IGST reverse charge mechanism and rejection of a rectification application. The court found the Proper Officer erred in treating a Supreme Court decision as prospective where constitutional precedent requires judgments to operate retrospectively unless expressly prospective, and concluded

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Scope of GST adjudication: order went beyond show-cause grounds, resulting in set aside and remand for fresh hearing.
Case-Laws
GST
Adjudication proceeded on a basis different from the grounds specified in the show-cause notice, breaching Section 75(7) of the GST Act which proscribes confirming demand on any ground other than those stated; consequence: the impugned orders could not stand. The adjudicating authority relied on invoice treatment under forward charge to treat supplies as ta

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Condonation of delay in filing statutory appeals limited to statutory 90-plus-30 day window; no further writ extension allowed
Case-Laws
GST
Section 107(4) permits a discretionary additional thirty days beyond the primary ninety-day limitation if the appellant shows sufficient cause, and that discretionary period is exhaustive; courts constitutional writ jurisdiction cannot be used to further extend the statutory timeline beyond the total 120 days. Reasons not meeting the sufficient cau

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GST assessment of non-filers: belated returns may be taken on record and prior adjudication orders set aside
Case-Laws
GST
Assessment orders passed under the GST scheme in respect of periods including March, April, June and July 2023 are set aside and the affected taxpayer is permitted to have belated returns taken on record; authorities are permitted to examine and adjudicate liability thereafter under the applicable assessment provisions (including proceedings under substantive assess

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GST detention notice and order invalidated for delayed portal upload and absence of personal hearing; order quashed
Case-Laws
GST
The challenge concerned validity of detention show cause proceedings where the notice and FORM MOV-7/MOV-9 were alleged to have been uploaded to the portal belatedly and no personal hearing was afforded. The failure to comply with mandated portal uploading timelines was held to cast doubt on the purportedly dated order, resulting in its invalidation. The deni

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Service of notices via GST portal denied taxpayer effective opportunity, resulting in quashing and remand for fresh rectification.
Case-Laws
GST
Challenge concerns validity of service where notices/orders were uploaded under an inaccessible portal tab, preventing the taxpayer from responding and leading to an ex parte assessment under Section 73. The tribunal found that electronic upload in an inaccessible category did not satisfy principles of natural justice because the affected perso

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Reconciliation statement and extended limitation under Section 74 require fresh adjudication with hearing and order within 12 weeks
Case-Laws
GST
Reconciliation statement dispute regarding an extended period of limitation under section 74 was not addressed by the adjudicating authority, which recorded perfunctory observations; the authority is directed to re-examine the limitation contention and the assertion of having supplied the reconciliation statement and to afford the petitioner a

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GST appeal time-bar and input tax credit proof: remand for fresh adjudication subject to 25% deposit from electronic cash ledger.
Case-Laws
GST
Expiry of statutory limitation for challenging a GST order was decisive where the petitioner failed to substantiate lawful availment of input tax credit and did not refute reliance on invoices from a supplier alleged to issue fake invoices; consequence: the matter was remitted for fresh adjudication. The adjudicating authority is directed to dec

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Wrongful utilisation of input tax credit: bail granted citing compounding possibility and lack of custodial necessity
Case-Laws
GST
Addresses bail in an alleged wrongful utilisation of input tax credit, noting non-compliance with the mandatory prior sanction requirement and the special statute regime. Discusses classification under the statute of cognizable/non-cognizable and bailable/non-bailable offences and observes custodial interrogation was not necessary. Notes alleged wrongful GS

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Wrongful input tax credit misuse: anticipatory bail granted, custodial interrogation declined and compounding possibility noted
Case-Laws
GST
Grant of anticipatory bail to an accused for alleged wrongful utilisation of input tax credit was ordered; custodial interrogation was declined because detention would adversely affect business and the alleged amount (~Rs.10 Crores) attracts a maximum five-year sentence, while compounding of offences remains available, so prosecution may be avoida

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Interactive Flat Panels classification under tariff heading and GST applicability decided by intended use; appeal dismissed.
Case-Laws
GST
Interactive flat panels (IFPDs) were characterised as monitors whose advanced ADP-type features are auxiliary, requiring tariff classification by basic intended use; consequently the product falls to be classified on its principal function, not ancillary computing capabilities. The appellate authority applied the essential use test to uphold the prio

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Eligibility to avail input tax credit on electrical installations for factory expansion denied as not plant and machinery
Case-Laws
GST
Electrical installations and their components for factory expansion do not qualify as 'plant and machinery' under the Explanation to Section 17(5) of the CGST Act because they are generic, serve multiple functions, and upon annexation become part of immovable property; consequence: input tax credit on GST paid for such electrical works is disallowed und

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Eligibility to claim ITC on firefighting and public health installations denied as they assimilate into immovable property, blocking credit
Case-Laws
GST
The dispute concerns eligibility to claim input tax credit on GST paid for firefighting systems and public health equipment installed for a new factory. The authority applied the definition of plant and machinery and the concept of immovable property, finding the installations become permanently fastened and assimilated into the buildi

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Profiteering in construction services for failure to pass input tax credit resulted in repayment exceeding the commensurate benefit and closure of proceedings.
Case-Laws
GST
Profiteering in construction services was found due to failure to pass on input tax credit, quantified at Rs. 1,37,672, but the respondent subsequently discharged the statutory obligation under Section 171 of the CGST Act, 2017 by passing Rs. 1,40,732 to the applicant, an amount exceeding the commensurate benefit; t

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