HomeNotificationOdisha Bans Gutkha, Tobacco Products

Odisha Bans Gutkha, Tobacco Products [READ NOTIFICATION]

The Odisha government has announced a far-reaching ban on gutkha, pan masala, and all tobacco and nicotine-containing products, significantly strengthening the state’s existing restrictions and closing long-standing loopholes in enforcement.

In a notification issued on Thursday, the Health and Family Welfare Department prohibited the manufacture, processing, packaging, storage, transportation, distribution, and sale of gutkha and any product containing tobacco or nicotine across the state. The order applies uniformly to all districts and comes into immediate effect.

Although Odisha had imposed a ban on the sale of tobacco products as early as 2013, officials said ambiguities in the earlier orders were frequently exploited. The updated notification is intended to ensure clarity, consistency, and strict enforcement at every level.

Health Secretary Aswathy S, in the official order, noted that the move aligns with directions from the Supreme Court, which has instructed health secretaries of all states to ensure complete compliance with the nationwide prohibition on the manufacture and sale of gutkha and pan masala.

No Exceptions, No Workarounds

The new ban is notably comprehensive. It applies to both packaged and unpackaged products, including items sold separately but marketed or intended to be mixed together—an approach commonly used in the past to evade regulations.

The notification also extends to all chewable food products, whether flavoured or unflavoured, scented or unscented, and regardless of additives. Products sold under any name, form, or branding that contain tobacco or nicotine fall under the prohibition.

Officials emphasized that enforcement agencies have been instructed to treat violations seriously, with coordinated action expected from food safety authorities, police, and local administrations.

Higher Taxes and New Cess From February 1

In a parallel development at the national level, the central government has announced significant tax changes for tobacco and pan masala products, effective February 1.

According to a government notification, pan masala, cigarettes, tobacco, and similar products will attract a Goods and Services Tax (GST) rate of 40 percent, while beedis will be taxed at 18 percent GST. In addition, a Health and National Security Cess will be imposed on pan masala, and tobacco products will face additional excise duty, news agency PTI reported.

The Finance Ministry has also notified the Chewing Tobacco, Jarda Scented Tobacco, and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026, signaling stricter monitoring of production capacities and tax collection mechanisms.

With the introduction of the new cess and excise framework, the existing GST compensation cess, which was levied at varying rates, will be discontinued from February 1.

Public Health Focus

Authorities say the combined measures—tightened state-level bans and increased central taxation—are aimed at reducing consumption of tobacco and related products, which are linked to serious health risks including cancer, cardiovascular disease, and oral health disorders.

The Odisha government reiterated its commitment to protecting public health and warned that any attempt to manufacture, trade, or distribute banned products would invite strict legal action.

Read More: Rs. 347 Crore Service Tax Demand on Mining Royalties Against Rajasthan Govt. Mines and Geology Dept. Quashed: CESTAT

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular