Penalties Imminent for Pan Masala and Tobacco Manufacturers

From October 1, manufacturers of pan masala and similar tobacco products must register their packing machinery with GST authorities or face penalties up to Rs 1 lakh. The GST Network introduced the new compliance forms SRM-I and II, focusing on better input-output tracking beginning April 2024.

The government has announced October 1 as the enforcement date for penalties on manufacturers of pan masala and similar tobacco products who fail to register their packing machinery with GST authorities.

In earlier notifications, the GST Network revealed forms GST SRM-I and II for registering machinery and reporting input and output data to tax authorities. The Central Board of Indirect Taxes and Customs (CBIC) disclosed on August 6 that penalties up to Rs 1 lakh would be imposed starting October 1, 2024, for non-compliance.

This initiative follows a January announcement introducing new registration and return filing procedures for these manufacturers, aimed at improving GST compliance. Initially intended to start from April 1, the date was extended to May 15. The Finance Bill 2024 formally amended the GST law in February, cementing the up to Rs 1 lakh penalty for failing to comply with the new requirements.

(With inputs from agencies.)