The Government of Tamil Nadu, on September 28, 2026, amended Notification No. II(2)/CTR/726(d-3)/2026 dated September 30, 2026, under Section 15(5) of the Tamil Nadu Goods and Services Tax Act, 2017, on the recommendations of the GST Council.
The amendment adds a new category of supplies covering specified goods on which the retail sale price (RSP) is declared, including pan masala, unmanufactured tobacco and tobacco refuse (excluding tobacco leaves), cigars, cigarettes, other manufactured tobacco products (excluding biris), and specified products containing tobacco or nicotine substitutes intended for inhalation without combustion. The notification defines RSP as the maximum price declared on packaged goods for sale to the ultimate consumer, inclusive of taxes, duties, surcharge and cess. Where multiple prices are declared, the maximum price applies; altered prices and area-specific prices are also addressed for valuation purposes. Classification is to be determined with reference to the Customs Tariff Act, 1975.
The amendment is deemed effective retrospectively from February 1, 2026. Businesses manufacturing, supplying or dealing in the specified goods should review the revised valuation provisions and assess their GST compliance obligations accordingly.
[G.O. Ms. No. 144]
