The decision was taken at a Cabinet meeting chaired by Chief Minister Prithviraj Chavan, sources said.
The ban on gutkha and paan masala (both flavoured tobacco-based products) will result in revenue loss of Rs 100 crore per year for the state exchequer, but the decision has been taken in larger public interest, they said.
Maharashtra has joined a handful of states, among them Kerala and Madhya Pradesh, to ban gutkha, blamed for oral diseases such as cancer.
Maharashtra had imposed a ban on the two products in 2002 and 2008 also but the decision could not pass legal scrutiny.
