The transfer is meant to curb income leakage within the tobacco manufacturing sector.
The Finance Bill, 2024, launched amendments to the Central GST Act, the place a penalty of Rs 1 lakh can be levied for each machine not registered.
Manufacturers of pan masala, gutka and comparable tobacco merchandise should pay a penalty of as much as Rs 1 lakh, in the event that they fail to register their packing equipment with the GST authorities with impact from April 1.
The transfer is meant to curb income leakage within the tobacco manufacturing sector.
Also Read: GST Loss Major Concern, CBI May Probe Officials Over Evasion Compromise: Sources
The Finance Bill, 2024, launched amendments to the Central GST Act, the place a penalty of Rs 1 lakh can be levied for each machine not registered.
Further, such non-compliant equipment would face the chance of seizure and confiscation in sure circumstances.
Based on the advice of the GST Council, the tax authorities had final 12 months notified a particular process for registration of machines by tobacco producers.
The particulars of current packing machines, newly-put in machines, together with the packing capability of those machines, must be furnished in Form GST SRM-I. However, there was no penalty notified for a similar.
Revenue Secretary Sanjay Malhotra mentioned the GST Council in an earlier assembly determined that for pan masala, gutka and comparable merchandise, there ought to be a registration of their machines in order that we are able to maintain a watch over their manufacturing capability.
“However, there were no penalties in case they failed to register. So the Council had decided that there should be some penalties. That’s why in the Finance bill you find penalty up to a lakh of rupees for not registering machines,” Malhotra informed PTI.
In February final 12 months, the GST Council, chaired by the Union finance minister and comprising state counterparts, had accredited the report of a panel of state finance ministers on plugging tax evasion in pan masala and gutkha companies.
The GoM (group of ministers) had really helpful that the mechanism for levy of compensation cess on pan masala and chewing tobacco be modified from advert valorem to a particular price-based mostly levy to spice up the primary stage assortment of the income.
Following that, the federal government had introduced in amendments to Finance Bill, 2023, as per which the GST compensation cess can be levied on pan masala and different types of tobacco on the best price of their retail sale worth.
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – PTI)
