Parliament Winter Session 2025, GST on Tobacco Pan Masala LIVE: The Winter Session of Parliament opens today where Finance Minister Nirmala Sitharaman is scheduled to introduce the Central Excise Amendment Bill, 2025 and the Health Security se National Security Cess Bill, 2025. The first one is expected to replace GST compensation cess on tobacco by levying excise duty, and the second one will replace the current compensation cess on pan masala. It aims to raise more money for national security and public health by adding a special cess on the machines or processes used to make certain listed products.
As of now, GST of 28% is charged on tobacco and pan masala, along with an extra compensation cess that varies by product. When GST was rolled out in July 2017, the compensation cess was created for five years to help states make up for revenue losses. It was later extended till March 31, 2026, because the Centre had taken loans during the Covid period and needed the cess collections to repay them. These loans are set to be fully repaid by December, after which the compensation cess will end.
Earlier, on September 3, 2025, the GST Council agreed that the cess on tobacco and pan masala would continue only until the loan repayment was completed. For other luxury goods, the compensation cess was removed on September 22 when GST rates were simplified into two slabs: 5% and 18%. Ultra-luxury goods and aerated drinks now attract a 40% rate.
SIR, Delhi AQI, US tariffs – Parliament set for a stormy session
The session opens today with a heavy cloud of Special Intensive Revision hanging over it. Many opposition parties have come together to protest the SIR of electoral rolls, warning that they will block both Houses unless there is a proper debate on the issue. Apart from SIR, Opposition MPs have asked the government for answers on several key issues which may also lead to ruckus in the Parliament, including new labour laws, Delhi’s AQI problem, security concerns after blast near Red Fort, Trump’s tariffs, border talks with China, and whether LIC has put money into the Adani Group.
Other key bills to be introduced in Winter Session of Parliament
The key 13 bills set for introduction/discussion during the Winter Session of Parliament starting today include:
– Atomic Energy Bill 2025
– Higher Education Commission of India Bill 2025
– Jan Vishwas (Amendment of Provisions) Bill 2025
– Insolvency and Bankruptcy Code (Amendment) Bill 2025
– Manipur Goods and Services Tax (Second Amendment) Bill 2025
– Repealing and Amending Bill 2025
– National Highways (Amendment) Bill 2025
– Corporate Laws (Amendment) Bill 2025
– Securities Markets Code Bill 2025
– Insurance Laws (Amendment) Bill 2025
– Arbitration and Conciliation (Amendment) Bill 2025
– Central Excise (Amendment) Bill 2025
– Health Security and National Security Cess Bill 2025
The session will run for 15 sittings over 19 days. Private Members’ Bills will be taken up on December 5 and 19, and Private Members’ resolutions will be discussed on December 12. Catch our live coverage here:
Winter Session of Parliament 2025 LIVE: Get Latest Coverage on for the Winter Session Full Agenda, Discussions, GST Cess on Tobacco Pan Masala New Bills, SIR and Expected Announcements
Parliament Winter Session 2025 LIVE: What happened at the BAC meeting?
The Opposition also brought up the SIR issue during the Lok Sabha Business Advisory Committee meeting, asking that a clear time be set for a debate on electoral reforms. The government is said to have replied that it would respond to their request later. While the Opposition wanted the session to start with a debate on electoral reforms, the ruling side argued that the first discussion in the Lok Sabha must be on the Manipur Goods and Services Tax (Second Amendment) Bill, 2025, as it is a constitutional requirement.
Parliament Winter Session 2025 LIVE: A stormy Session on SIR?
The Winter Session of Parliament starts today amid high tension as the Opposition is united in demanding a debate on the Special Intensive Revision (SIR) of electoral rolls. They have warned that they may disrupt proceedings if the government does not agree.
The Opposition on Sunday said that it was willing to discuss SIR as part of a larger debate on electoral reforms. At the same time, the government asked Opposition leaders to cooperate to ensure the session runs smoothly. Sources said the government told them it would respond on the SIR issue later, while suggesting a discussion on Vande Mataram for now. These talks happened first at an all-party meeting and then continued during the Business Advisory Committee meetings of both the Rajya Sabha and Lok Sabha.
Parliament Winter Session 2025 LIVE: Questions that follow the proposed bill on new cess
If the new charge targets tobacco, has the bill looked at what this means for people working in the industry, especially tobacco farmers? And if it is meant to support national security, will a large share of the money go to the defence sector? How much does the government plan to invest in improving public health through strong, dedicated institutions?
Stay with us as we bring to you the answers of all the questions surrounding the Central Excise (Amendment) Bill and the Health Security se National Security Cess Bill.
Parliament Winter Session 2025 LIVE: What does the BAC outline for the two key bills?
As per the agenda outlined in the business advisory committee (BAC) for the session, here’s what the two key bills are about:
Right now, products like cigarettes, chewing tobacco and pan masala face a 28% GST, along with an extra compensation cess that varies widely depending on the item. This cess was created to help states make up for revenue they lost when GST was introduced.
The new Central Excise (Amendment) Bill, 2025, bill aims to replace this cess with a central excise duty on these products. Excise duty is a tax charged on the manufacturing of certain goods, which means the government is shifting these items back to a system similar to what existed before GST.
This amendment is linked to another bill that brings in a new Health Security and National Security Cess. This cess would be charged on the machines or processes used to make certain products, such as equipment used to process tobacco.
Money collected from the excise duty and the new cess would be set aside only for public health and national security. It could support things like anti-tobacco campaigns, better healthcare facilities, or health programmes linked to defence.
Parliament Winter Session 2025 LIVE: How will the funds from new cess get deployed?
Reports of the government planning to introduce a new cess to raise money for national security and health has been rife since Sunday. But public health experts believe that the real issue is how this money will actually be used. Since more details are still awaited, many doubts persist along with ideas on how the funds could be deployed? One senior public health expert, who did not want to be named, told The Financial Express, that he was in favour of the money to be used for creating a dedicated institute for health promotion, similar to what Thailand has done.
Parliament Winter Session 2025 LIVE: All about the proposed Bill to impose health & security cess
Finance minister Nirmala Sitharaman will on Monday place a Bill in the Lok Sabha to introduce a new cess for public health and national security. This cess will replace the GST compensation cess on tobacco, which will end once the Centre finishes repaying the loans it took to compensate states. Monday also marks the start of the 15-day winter session of Parliament.
According to the Lok Sabha’s list of business, the new cess will be charged on the machines or processes used to make certain goods, though the exact list has not been shared yet. The aim is to keep the total tax on cigarettes, gutkha, pan masala and other tobacco products at the same level even after the GST compensation cess expires.