To prevent evasion, the GST Portal implemented machine registration for pan masala and tobacco manufacturers

Description

In order to prevent tax evasion in the pan masala and tobacco industries, the GST portal has implemented additional forms and procedures for firms to register machinery and report monthly inputs and outputs. This program is based on GST Council guidelines and aims to improve compliance while reducing illicit commerce.

New Forms For Machine Registration Aand Reporting

To combat avoidance, the GST portal created two forms for manufacturers of pan masala and tobacco products-

• Form GST SRM-I is for registering and disposing of manufacturing machines.
  

• Form GST SRM-II- Used to report monthly inputs and outputs.

These forms are part of a January notification released in response to GST Council proposals. The system's launch date was originally scheduled for April 1, but was pushed back to May 15.

Implementation And Compliance Requirements

Manufacturers of specified commodities, including pan masala, gutka, and other tobacco products, are now required to-

• Register Machinery- Provide information about all packing machines within 30 days of the new regulations taking effect on May 15, 2024. Additional machines installed must be reported within 24 hours.

• Monthly Reporting- Submit a particular statement on inputs and outputs for each month by the 10th of the following month.

• The GST portal has already made Form GST SRM-I available for machine registration, and Form GST SRM-II will be available soon.

Penalties For Noncompliance

• The Finance Act of 2024 updated the GST law to add fines for producers that fail to register their packing machinery. 

• Offenders may face fines of up to Rupees 1 lakh, but the particular punishment terms have not yet been specified.

Targeted Goods And Definition Of Brand Name

The new approach applies to manufacturers of a variety of tobacco-related products, including-

• Pan masala
  

• Unmanufactured tobacco (no lime tube)
  

• Hookah or Gudaku tobacco
  

• smoking combinations for pipes and cigarettes
  

• Chewing tobacco (without the lime tube)
  

• Filter Khaini, Jarda-scented tobacco.
  

• Snuff

• Branded Or Unbranded Gutkha

The notification explains that "brand name" refers to any trade name, symbol, monogram, label, signature, or coined phrase associated with the specified goods, regardless of whether it is registered.

Recommendations By The Group Of Ministers

The new procedures are the result of suggestions made by a Group of Ministers (GoM), which underlined the global prevalence of tax evasion in the tobacco industry. To address the issue, they proposed:

• Rack-and-Trace System- An internationally recognized way of preventing illicit trading by electronically tracking products from manufacturing to sale.
  

• Detailed Machine Registration- Manufacturers must register each machine, giving the make, year of production, number of tracks, and capacity.

Welcome to Notopedia.com, your free learning platform that caters to the diverse needs of students and aspirants across a spectrum of entrance exams and educational endeavors. Whether you're preparing for highly anticipated exams like CAT 2023, NEET 2023, JEE Main, or bank job vacancies, our platform offers a wealth of resources to guide you towards success. Stay up-to-date with the latest exam dates, announcements, and results for various government recruitment exams, including SSC CGL, CHSL, NDA, and UPSC. Explore comprehensive study materials, sample papers, and exam patterns to hone your skills and boost your confidence. From important dates like CBSE Class 10 and 12 date sheets to exam-specific information like JEE Main 2023 application form date, we cover it all. Notopedia.com is your go-to source for everything from admissions and admit cards to scholarships and college information. Whether you're aiming for a career in defense, government, banking, or higher education, our free learning platform equips you with the knowledge and resources you need to excel. Join us in your educational journey and unlock a world of opportunities, guidance, and comprehensive support.

For more Updates and Information - Visit Notopedia's Bulletin Board

For Latest Sarkari Jobs - Visit Notopedia's Sarkari Jobs Section

For access to more than 20,000 Colleges - Visit Notopedia's College Section

For School Studies and Exams Preparation across 14 Boards - Visit Notopedia's School Section

For Comprehensive Preparation of Sarkari Job Exams - Visit Notopedia's Sarkari Exams Section

For Comprehensive Preparation of Competitive Exams - Visit Notopedia's College Entrance Exams Section