The HSN code for cigarettes is 2402. GST is 40%: 20% CGST + 20% SGST within a state, or 40% IGST to another state. From 1 February 2026 cigarettes are 40% in Schedule III, GST is valued on the declared retail sale price, and compensation cess is nil; check central excise duty separately.
HSN code and GST rate for cigarettes
| Item | Cigarettes |
|---|---|
| HSN heading | 2402 |
| Description | Cigars, cheroots, cigarillos and cigarettes of tobacco or tobacco substitutes |
| GST rate | 40% |
| Same state | 20% CGST + 20% SGST |
| Other state | 40% IGST |
| Cess | Compensation cess nil from 1 February 2026 |
From 1 February 2026 cigarettes are 40% in Schedule III, GST is valued on the declared retail sale price, and compensation cess is nil; check central excise duty separately.
Example: GST on a ₹1,000 sale of cigarettes
Taxable value ₹1,000.00. Within your state: CGST ₹200.00 + SGST ₹200.00 = ₹400.00, invoice total ₹1,400.00. To a buyer in another state: IGST ₹400.00, the same total.
How to show it on your invoice
Write the HSN code against each item line: at least 4 digits (2402) if your turnover in the previous year was up to ₹5 crore, 6 digits above that. Charge CGST and SGST when the buyer is in your state and IGST when the place of supply is another state. A GST invoice also needs your GSTIN, the buyer's GSTIN for B2B sales, the invoice number and date, the taxable value and the tax for each rate. Make one in a minute with the free GST invoice generator, or keep billing in FundRaksha Book, which fills the HSN and splits the tax for you.