Pan Masala Manufacturers to Register Under New Cess Law by February Deadline

Pan masala manufacturers must register under the Health and National Security Cess Act by February 1, 2026. Separate registrations for factories and compliance with new tax and CCTV requirements are required. Failure to comply could lead to penalties. The cess is to be collected monthly, alongside existing GST rates.

The finance ministry announced that pan masala manufacturers must register under the new Health and National Security Cess Act by February 1, 2026. This registration is crucial as a liability to pay cess begins on the same date.

According to the ministry, manufacturers with multiple factories must register each separately on the ACES portal, and they need to file declarations within seven days of registration granting. Tax officers are expected to verify factory operations within 90 days.

New rules mandate the installation of CCTV systems in packaging areas and on machines, with footage retained for up to 24 months. The cess will be 88 percent in combination with GST, calculated based on machine capacity, with penalties applied for non-compliance.