## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/in/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

[Back](./)

# How will GST be applied to sin goods sold in your business?

Starting February 1, 2026, the Government of India requires businesses to calculate GST on the MRP (Maximum Retail Price) or RSP (Retail Sale Price) of sin goods, such as pan masala and tobacco products, instead of the selling price to comply with Rule 31D of GST. Learn more about the [new GST rules](https://taxinformation.cbic.gov.in/view-pdf/1010546/ENG/Notifications).

To comply with this change, you must first enable the MRP field in your Zoho Books organisation. Here’s how:

*   Go to **Settings**.
*   Under _Module Settings_, select **Items** under _General_.
*   Navigate to the **Field Customisation** tab.
*   Hover over _MRP_, click the dropdown icon next to it, and select **Mark as Active**.

The MRP field will now be marked as **Active**.

If you’ve previously recorded the applicable sin goods in your organisation, you can update their MRPs manually, either in bulk or for each items individually.

To update the MRP for those items in bulk:

*   In the _Home_ page, click **View Details** in the banner.
    *   Or, go to _Items_ on the left sidebar, and select **Items**.
    *   Click **Update MRP for Sin Goods** in the top right corner.
*   In the pop-up that appears, click **Enable & Continue**.
*   In the _Enter MRP for Sin Goods_ pop-up, you’ll see a list of applicable items. Enter their MRPs.
*   Enable **Tax Calculation on MRP** for all listed goods.
*   Click **Continue**.
*   In the _Schedule MRP-Based Tax Update_ pop-up, choose the date to schedule the tax updates. The taxes will be updated on the scheduled date, and will be effective from February 1, 2026.
*   Click **Schedule**.

Zoho Books will apply the updated GST rules to these items from the scheduled date.

Going forward, when you create a new item, the **MRP** field will appear on the item creation page. When you enter the HSN code for the item that applies to pan masala or tobacco products, the **Calculate tax based on MRP** option will appear below the _MRP_ field. In such cases, enable that option to calculate GST on the item’s MRP.

**Note:** If you create an item that falls under other sin goods (such as luxury items), this option won’t appear.

When you add these items to transactions:

*   You’ll see **Taxed on MRP** in the Tax column for the respective line item.
*   It will also appear below the item’s name in the transaction PDF.