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Manufacturers who fail to register their tobacco packing machines with GST officials risk a fine of Rs 1 lakh
Manufacturers of tobacco products will have to pay a penalty to the GST authorities if they have not registered their packing machinery. The purpose of this step taken by the GST department is to stop the decline in revenue in the tobacco manufacturing sector. An amendment to the Central GST Act has been introduced in the Finance Bill of 2024 in which this decision has been taken.
This news is for you if you are a manufacturer and trader of tobacco, gutka, and pan masala. A new advisory has now been released by the GAT department. If tobacco product manufacturers fail to register their packing machinery, they will be penalised by the GST authorities. The GST department's action is intended to halt revenue leakage in the tobacco manufacturing industry.
The Central GST Act will be amended by the Finance Bill of 2024, requiring manufacturers to pay a fine to the government of Rs 1 lakh. Each piece of machinery that isn't registered there will be fined Rs 1 lakh.
Furthermore, such non-compliant machinery will face the risk of seizure and confiscation in some cases. Based on the recommendation of the GST Council, the tax authorities had last year notified a special procedure for the registration of machines by tobacco manufacturers. Details of existing packing machines, newly installed machines along the packing capacity of these machines have to be furnished in Form GST SRM-I. However, no penalty was notified for this.
