Guide to New GST Reporting Protocols for RSP-Based Tobacco Valuation

The Goods and Services Tax Network (GSTN) has released a crucial advisory dated January 23, 2026, outlining the procedural changes for reporting supplies of specific tobacco products. Effective from February 1, 2026, the valuation of these notified goods will shift from a transaction-value based model to a Retail Sale Price (RSP) based mechanism.

This shift mandates that the assessee calculates tax liability based on the RSP printed on the product packaging, regardless of the actual commercial transaction price. This article details the operational guidelines for e-Invoicing, e-Way Bills, and GSTR-1 filing under this new regime.

Regulatory Framework

The Government has operationalized this change through Notification No. 19/2025–Central Tax and Notification No. 20/2025–Central Tax, both dated December 31, 2025. These notifications stipulate that for specific HSN codes, the taxable value is derived strictly from the declared RSP.

Consequently, the commercial consideration exchanged between the supplier and the buyer is no longer the primary basis for determining the tax component, although it remains relevant for the "Total Invoice Value" in accounting terms.

Notified Goods Subject to RSP Valuation

The following table lists the specific commodities and their respective HSN codes that fall under this new valuation mandate: