PAN Masala And Tobacco Company: The government has announced to imposing a fine of up to Rs 1 lakh on companies manufacturing pan masala and similar tobacco products for not registering their machines from October 1. The fine will be imposed on companies that fail to register their 'packing machinery' with the GST authorities. GST Network had earlier notified two forms GST SRM-I and II in May and June to register the machine used by such manufacturers and to report the raw materials purchased and related production to the tax authorities .

The rules will be implemented from October 1

The Central Board of Indirect Taxes and Customs ( CBIC ) informed on August 6 that a fine of up to Rs 1 lakh will be imposed from October 1, 2024, for not registering your packing machine with GST officials. In January, the CBIC had announced the introduction of a new registration and monthly return filing process from April 1 to improve GST compliance for manufacturers of pan masala and tobacco products. Which was later extended to May 15.

Tax evasion will stop

The introduction of GST SRM-I and II allows manufacturers to electronically register their packaging machines. This will help track production volumes and identify potential discrepancies. After machine registration, manufacturers can now use GST SRM-II to report details of raw materials purchased (inputs) and finished products (outputs) every month. This will present an accurate picture of the production volume and help prevent any tax evasion attempts.