Ban on Gutkha, Pan Masala, Zarda, Khaini & All Tobacco & Nicotine Products in Odisha; Cigarette, Bidi Excluded

The Odisha government on Wednesday announced a complete ban on the manufacture and sale of gutkha and similar products containing tobacco and/or nicotine across the state. The move strengthens earlier restrictions and aims to eliminate loopholes that allowed the continued circulation of such products despite an existing ban.

Ban on Tobacco and Nicotine Products Including Gutkha, Pan Masala, Zarda, Khaini in Odisha

According to a notification issued by the Health and Family Welfare Department, the prohibition applies to all tobacco- and nicotine-based products, including gutkha, pan masala, zarda, khaini and similar items. The order explicitly bans the manufacturing, processing, packaging, storage, transportation, distribution and sale of these products within Odisha.

Does Ban Include Cigarette and Bidi?

However, the ban does not include cigarettes and bidis, which will continue to be regulated under separate taxation and excise frameworks.

While Odisha had earlier banned the sale of certain tobacco products in 2013, authorities said ambiguities in previous notifications created enforcement challenges. The revised order is intended to ensure uniform implementation across the state and prevent misuse of legal grey areas.

Health Secretary Aswathy S stated in the notification that the Supreme Court had directed Health Department secretaries of all states to ensure strict compliance with the ban on the manufacture and sale of gutkha and pan masala.

Packaged and Unpackaged Tobacco and Nicotine Products Both Prohibited

The ban applies to both packaged and unpackaged forms of tobacco and nicotine products. It also covers products that are sold separately but distributed in a manner that enables consumers to mix them, a common method used earlier to bypass restrictions.

Officials clarified that such practices would now be treated as violations under the revised order.

Chewable and Flavoured Food Products Included

The prohibition extends beyond conventional tobacco items to cover all chewable food products, whether flavoured, scented, mixed or combined with additives, if they contain tobacco or nicotine. Products sold under any name, form or packaging, including gutkha and pan masala variants, fall under the scope of the ban.

Centre Notifies New Rules for Chewing Tobacco, Jarda and Gutkha Packing Machines

In a related development, the Finance Ministry on Wednesday notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. The rules are aimed at tightening regulatory oversight and improving tax compliance in the tobacco and pan masala sector.

GST Hike from February 1: Pan Masala, Cigarettes and Tobacco to Attract 40% GST; Bidis at 18%

The notification also stated that the existing GST compensation cess, which is currently levied at varying rates on tobacco and related products, will cease to exist from February 1.

From that date, pan masala, cigarettes, tobacco and similar products will attract a uniform GST rate of 40%, while bidis will be taxed at 18% GST. In addition, a Health and National Security Cess will be levied on pan masala, while tobacco and allied products will attract additional excise duty, further increasing the tax burden on these items.