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Odisha imposes complete ban on gutkha, pan masala and all tobacco products

In a related move, the central government has set February 1 as the date from which additional excise duty will be levied on tobacco products, along with a new cess on pan masala.

January 22, 2026 / 17:50 IST
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The Odisha State Health Department on Thursday announced a comprehensive ban on the manufacture, processing, packaging, storage, transportation, distribution, and sale of gutkha, pan masala, and all products containing tobacco.

The Health and Family Welfare Department issued a notification explicitly prohibiting these activities for gutkha as well as any product containing tobacco or nicotine. While Odisha had already banned the sale of tobacco products in 2013, the updated order aims to remove earlier ambiguities and ensure uniform enforcement across the state.

Health Secretary Aswathy S stated in the notification that the Supreme Court has directed health secretaries of all states to ensure full compliance with the nationwide ban on the manufacture and sale of gutkha and pan masala, reported The New Indian Express.

The ban applies to both packaged and unpackaged products, including items sold separately but intended to be mixed together, a common method previously used to bypass restrictions. It also covers all chewable food products, whether flavoured or unflavoured, scented or mixed with additives, and includes items sold under any name or form.

In a related move, the central government has set February 1 as the date from which additional excise duty will be levied on tobacco products, along with a new cess on pan masala.

From February 1, pan masala, cigarettes, tobacco, and similar products will attract a Goods and Services Tax (GST) rate of 40 percent, while beedis will attract 18 percent GST, according to a government notification. On top of this, a Health and National Security Cess will be imposed on pan masala, and tobacco and related products will face additional excise duty, news agency PTI reported.

The Finance Ministry on Wednesday also notified the Chewing Tobacco, Jarda Scented Tobacco, and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. The current GST compensation cess, which is levied at varied rates, will cease to exist effective February 1.

first published: Jan 22, 2026 05:50 pm

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