From Compensation Cess to HSNS / Revised Sin-Goods Taxes

Topic in 2 Minutes

The transition is product-specific. From 1 February 2026 specified pan-masala/tobacco compensation cess was withdrawn while revised GST rates, central excise and HSNS mechanisms took effect depending on the product.

Practical control

• Identify the exact historical period/product.
• Open the controlling rate/procedural notification for that date.
• Keep cess ledgers/refunds separate from ordinary GST credit.
• For post-February-2026 sin goods, test the replacement/current levies separately.