Overview

• From September 22, a new two-rate structure places cigarettes, pan masala and most tobacco products in a 40% GST slab, while bidis shift to 18% and tendu leaves drop to 5%.
• The government says pan masala, gutkha, cigarettes, chewing tobacco, unmanufactured tobacco and bidis will continue under existing GST plus compensation cess until compensation-cess obligations are cleared.
• Officials and reporting cite protection of rural livelihoods as a key factor, noting 49.82 lakh registered bidi workers, largely home-based women, and seasonal tendu collection by forest households.
• Public health experts, including Rijo M John, criticized the bidi cut as a setback, pointing to widespread bidi use and higher toxicant delivery compared with cigarettes.
• Survey data referenced in coverage show about 71 million Indian adults smoke bidis, underscoring concerns that cheaper bidis could raise consumption.