The Goods and Services Tax Network (GSTN) on January 23, 2026, issued an Advisory on RSP-Based Valuation of Notified Tobacco Goods under GST.
The following has been stated: -
•RSP-based valuation has been introduced for specified tobacco and related products (HSN 2106, 2401–2404) effective February 01, 2026.
•GST will be calculated on the declared Retail Sale Price (RSP), not on the actual transaction value.
•Tax must be derived using a reverse calculation formula, treating RSP as tax-inclusive.
•For e-Invoice, e-Way Bill, and GSTR-1, taxpayers must report net sale value as taxable value, but compute tax strictly on RSP.
•This special reporting is a system facilitation measure only, without altering statutory tax liability under GST law.
The detailed notification is given in the document below.
