Tax Tips: Is there a different tax on sweet and tobacco paan? Even those who eat it don't know..
Shikha Saxena January 04, 2025 04:15 PM

The hobby of eating paan has been going on in India for centuries. Due to this hobby of eating paan, songs have also been made on it in Bollywood films, including the song Khai ke paan Banaras wala from Amitabh Bachchan's film Don and the song Paan khaye saiyan hamaar from Raj Kapoor's film Teesri Kasam. Both these songs were super duper hits in their time. Who knew then that one-day paan eaters would also have to pay tax?

The hobby of eating paan in the country is so much that even the paan eaters do not know that the government levies GST tax on the paan they eat. Of course, this tax is not levied on paan, but GST tax is levied in different categories on many things used in preparing paan such as tobacco, sugar candy, and gulkand.

There was a time when paan was given as a tax

There was a time in the country when paan was given in advance as tax. Let us tell you that the Mughals were very fond of eating Paan and the form of Paan today is largely a gift of the Mughals. Mughal emperor Jahangir's Begum Noor Jahan used lime, betel nut, cloves, and cardamom inside Paan. At that time, Paan from Mahoba State of UP was very famous. Therefore, Paan was given to the Mughals as a tax.

The history of Paan is 5000 years old.

Talking about the history of Paan is discussed in many religious texts of Hindus, but according to the opinions of scholars, the journey of Paan is about 5000 years old. But, its use as a digestive or mouth purifier after eating is 2500 years old. Today, 40 types of Paan leaves are found all over the world.

So much tax is levied on sweet paan.

If we talk about paan leaves, then there is no tax on it, but 5 to 12 percent GST is levied on the ingredients used in sweet paan like betel nut, gulkand, fennel, coconut, and other sweet ingredients. Therefore, a 5 to 12 percent tax is levied on sweet paan.

More tax on tobacco paan

Many people might be thinking that fewer ingredients are used in tobacco paan as compared to sweet paan, so less tax will be levied on it. If you are also thinking so, then let us tell you that the government levies 28 percent GST on tobacco and paan masala. In such a situation, if you eat tobacco paan, then you also pay 28 percent GST on paan.

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