Finance Minister Nirmala Sitharaman told the Upper House that the cess provides a viable mechanism to strengthen healthcare systems and bolster defence preparedness. She stressed that essential goods will not be taxed and that revenues will be shared with states, acknowledging health as a state subject. Sitharaman noted that under the older GST framework, sin goods attracted GST plus compensation cess, taking total levies up to 88% in some cases, but the next-generation GST regime now caps rates at 40%.

The Bill drew mixed reactions during the debate. Congress' Shaktisinh Gohil said harmful products like gutkha and pan masala should be banned outright, while TMC's Saket Gokhale criticised the cess as contrary to federal principles. Shiv Sena MP Milind Deora and BJP MP Kavita Patidar supported the Bill, highlighting the health burden of tobacco-related diseases and the need for targeted revenue to address them. MPs from TDP, BJD, AIADMK and CPI(M) also participated in the discussion. After completing legislative business, the House was adjourned for the day.

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