Penalty on Tobacco Product Makers: According to the advisory issued by GST, companies manufacturing tobacco products will have to register their packing machines with GST authorities from April 1.
GST Council: Companies manufacturing pan masala, tobacco and gutka products may face heavy fines from April 1. A new advisory has been issued today by the GST Council, in which information has been given in this regard. According to the advisory issued by GST, companies manufacturing tobacco products will have to register their packing machines with GST authorities from April 1.
If a tobacco product manufacturing company fails to register its packing machinery with the GST authorities, it will have to pay a fine of up to Rs 1 lakh.
Decision taken after amendment in the bill
The purpose of this step of the government is to stop revenue leakage in the tobacco manufacturing sector. The Finance Bill, 2024 has introduced amendments to the Central GST Act, which states that a fine of Rs 1 lakh will be imposed on each machine that is not registered there.
The process for registration had started
Based on the recommendation of the GST Council, the tax authorities last year introduced a special process for registration of machines by tobacco manufacturers. Details of existing packing machines, newly installed machines along with the packing capacity of these machines have to be given in Form GST SRM-I. However, last year no information was given about any kind of penalty for this.
Why is registration being done?
Revenue Secretary Sanjay Malhotra said that the GST Council had decided in the last meeting that their machines for pan masala, gutkha and similar products should be registered so that we can keep an eye on their production capacity.
Malhotra told the media that till last year, no penalty was being imposed on those who did not register. At present, this time the council has decided that there should be some penalty for this. For this reason, it has now been decided to impose a fine of Rs 1 lakh on those who do not register.
In February last year, the GST Council had approved the report of a panel of state finance ministers on curbing tax evasion in pan masala and gutkha business.
