The Ministry of Finance on Wednesday issued a notification announcing discontinuation of the Goods and Services Tax (GST) compensation cess on tobacco and related products effective February 1, marking the end of a temporary levy introduced in 2017 to offset state revenue losses during the GST rollout and extended to repay Covid-era borrowings. A separate Health Security and National Security Cess has been introduced on pan masala and related items to maintain high taxation levels, with proceeds earmarked for public health initiatives and national security will also come into effect from February 1.