Government Tightens Regulations on Chewing Tobacco and Gutkha Manufacturing

Manufacturers of chewing tobacco, gutkha, and similar products must install CCTV systems by February 1, 2026. Stricter regulations include disclosing machine capacities to excise authorities and levying high excise duties. Manufacturers must also preserve video footage for 24 months and can claim excise duty abatement for non-functional machines.

Starting February 1, 2026, the government mandates that chewing tobacco and gutkha manufacturers install operational CCTV systems, with footage preserved for 24 months. This is among new rules requiring disclosure of machinery details to excise authorities, as per a recent notification by the Finance Ministry.

Additionally, the new guidelines specify high excise duties, levying 82% on chewing tobacco and 91% on gutkha, alongside a 40% GST rate. Manufacturers packing these products in pouches must detail machine specifications and report to excise officials, a move to enhance industry transparency and compliance.

The regulations allow manufacturers to claim an abatement in excise duty if a machine is non-functional for at least 15 consecutive days. Compliance involves notifying the excise department three days in advance, with officials overseeing the sealing and unsealing of machines.

(With inputs from agencies.)