New Delhi: The government has notified October 1 as the date for implementation of the penalty provision for manufacturers of pan masala and similar tobacco products, if they fail to register their packing machinery with GST authorities.
The GST Network had earlier in May and June notified two forms GST SRM-I and II for registering machines used by such manufacturers and to report inputs procured and corresponding outputs with tax authorities.
The Central Board of Indirect Taxes and Customs (CBIC) August 6 notified October 1, 2024, as the date for levy of up to Rs 1 lakh penalty for failure to register their packing machines with GST authorities.
In January, the Central Board of Indirect Taxes and Customs (CBIC) had announced the introduction of a new registration and monthly return filing procedure to improve GST compliance for manufacturers of pan masala and tobacco products effective April 1.
The date was later extended till May 15.
The move to overhaul the registration, record-keeping, and monthly filing of such businesses was aimed at improving Goods and Service Tax (GST) compliance for manufacturers of pan masala and tobacco products.
Via the Finance Bill 2024 in February, the GST law was amended to say that manufacturers of pan masala, gutkha and similar tobacco products will have to pay a penalty of up to Rs 1 lakh, if they fail to register their packing machinery with GST authorities with effect from April 1.
The procedure was to be applicable for manufacturers of pan-masala, unmanufactured tobacco (without lime tube) with or without brand name, ‘Hookah’ or ‘gudaku’ tobacco, smoking mixtures for pipes and cigarettes, chewing tobacco (without lime tube), filter khaini, jarda scented tobacco, snuff and branded or unbranded ‘Gutkha’, etc.
The manufacturers of such tobacco products are required to furnish the details of packing machines being used for filling and packing of packages in Form GST SRM-I, electronically within 30 days of the notification coming into effect i.e., April 1, 2024.
The input and output statement GST SRM-II needs to be filed by the 10th of the succeeding month.
PTI