Introduction of Valuation Rule under Rule 31D- GST Notification No 20/2025 (CT)
The CBIC has issued GST Notification No 20/2025 (CT) for Introduction of Valuation Rule under Rule 31D on 31-12-2025 which will be applicable from 01-02-2026.
Separate Valuation Rule 31D has been inserted for supply of tobacco products mentioned in Notification No 20/2025-CT dated 31-12-2025. These goods have been valued on the basis of Retail Sales Price (as explained in above point) declared on such goods less the amount of tax applicable.
As per the Notification No 20/2025-CT for following goods the amount of Tax shall be determined in the following manner:
Tax Amount = (Retail sale price X tax rate in % of applicable taxes) / (100+ sum of applicable tax rate)
Applicable tax means IGST or CGST or SGST or UTGST as the case may be.
| Sr No | Chapter/ Heading/ Sub heading / Tariff Item | Description of Goods |
| 1 | 21069020 | Pan masala |
| 2 | 2401 | Unmanufactured tobacco; tobacco refuse [other than tobacco leaves] |
| 3 | 2402 | Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes; |
| 4 | 2403 | Other manufactured tobacco and manufactured tobacco substitutes; homogenised or reconstituted tobacco; tobacco extracts and essences [other than biris]; |
| 5 | 24041100 | Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion; |
| 6 | 24041900 | Products containing tobacco or nicotine substitutes and intended for inhalation without combustion; |
A registered person other than a manufacturer gets exemption from Rule 86B only for specific goods:
- The exemption applies only to goods notified under Rule 31D,
- Where GST is paid by the supplier based on Retail Sale Price (RSP).
(Rule 86B related to 1% of the output tax liability must be paid in cash through the electronic cash ledger & He cannot use Input Tax Credit (ITC) beyond 99% of his output tax liability for that month will not applicable )
Notification No 20/2025-CT Dated 31-12-2025
