New Delhi: The government has notified October 1 as the date for imposing penalty provisions for manufacturers of pan masala and tobacco products. The penalty will be imposed if manufacturers fail to register the packing machinery with GST authorities.

In May and June this year, the GST Network notified two forms GST SRM-I and II. These two forms are used by manufacturers to register the machines used and report the inputs purchased and the corresponding outputs with the tax authorities.

CBIC notified date

The Central Board of Indirect Taxes and Customs (CBIC) on August 6, 2024 notified October 1, 2024 as the date for imposing a penalty of up to Rs 1 lakh for failure to register their packing machines with the GST authorities.

In January, the CBIC had announced the introduction of a new registration and monthly return filing process to improve GST compliance for manufacturers of pan masala and tobacco products from April 1, 2024. This date was later extended to May 15. It was aimed at improving Goods and Services Tax (GST) compliance for manufacturers of pan masala and tobacco products.

The GST law was amended through the Finance Bill 2024 in February 2024. According to the amendment, if the manufacturers of pan masala, gutkha and similar tobacco products fail to register the packing machinery with the GST authorities, they will have to pay a fine of up to Rs 1 lakh.

This manufacturer is involved

The procedure was to be applicable to manufacturers of pan-masala, with or without brand name, 'hookah' or 'gudaku' tobacco, smoking mixtures for pipes and cigarettes, chewing tobacco (without lime tube), filter khaini, zarda scented tobacco, snuff and branded or unbranded 'gutkha' etc.

Manufacturers of such tobacco products are required to electronically submit details of packing machines used for filling and packing of packages in FORM GST SRM-I within 30 days of the coming into force of the notification i.e. by 1st April, 2024. Input and output statement FORM GST SRM-II should be filed by 10th of the following month.