GST registration mandatory for tobacco products
image for illustrative purpose
New Norms
- Latest rule enables govt to ascertain production capacity
- Rs1-lakh penalty if GST registration not done
New Delhi: Manufacturers of pan masala, gutka and similar tobacco products will have to pay a penalty of up to Rs1 lakh, if they fail to register their packing machinery with the GST authorities with effect from April 1.
The move is intended to curb revenue leakage in the tobacco manufacturing sector. The Finance Bill-2024, introduced amendments to the Central GST Act, where a penalty of Rs1 lakh would be levied for every machine not registered. Further, such non-compliant machinery would face the risk of seizure and confiscation in certain cases. Based on the recommendation of the GST Council, the tax authorities had last year notified a special procedure for registration of machines by tobacco manufacturers.
The details of existing packing machines, newly-installed machines, along with the packing capacity of these machines, have to be furnished in Form GST SRM-I. However, there was no penalty notified for the same.
