In a bid to tackle tax evasion plaguing the pan masala and tobacco industry, the GST Council has rolled out a groundbreaking initiative. The introduction of machine registration via the GST portal marks a pivotal step towards enhancing compliance and curbing illicit practices within the sector.
Effective May 15, 2024, manufacturers of pan masala, gutka, and various tobacco products are mandated to register their packing machines within 30 days of the enforcement of the new norms. Failure to comply could result in penalties of up to ₹1 lakh, as per the recent amendments to the GST law under the Finance Act 2024.
The registration process, facilitated through forms GST SRM-I and GST SRM-II, is designed to gather crucial information on machine usage, inputs, and outputs. GST SRM-I focuses on machine registration and disposal, while GST SRM-II delves into tracking inputs and outputs on a monthly basis.
The move comes in response to recommendations from the GST Council, aiming to tackle widespread tax evasion prevalent in the tobacco industry. By leveraging a track-and-trace methodology, the initiative seeks to establish a robust system for monitoring and enforcing compliance.
Under this framework, registered entities must furnish details of their packing machines within the stipulated timeframe, with additional machines requiring immediate disclosure. Monthly statements are mandated to be submitted by the tenth day of the following month, ensuring timely and transparent reporting.
The emphasis on machine registration and comprehensive disclosure underscores the commitment to combatting tax evasion. By implementing international best practices and innovative enforcement mechanisms, the GST Council aims to foster a culture of compliance and integrity within the tobacco sector.
The introduction of machine registration forms a cornerstone of this strategy, reinforcing the government’s resolve to uphold tax transparency and accountability. With stringent penalties in place for non-compliance, manufacturers are urged to adhere to the new norms and contribute to a more robust and equitable tax ecosystem.
In collaboration with a Group of Ministers (GoM), the GST Council has devised a tailored approach to address the unique challenges posed by tax evasion in the tobacco industry. By harnessing the power of technology and regulatory oversight, the track-and-trace method promises to be a game-changer in the ongoing battle against illicit trade.
As the deadline for compliance approaches, stakeholders are encouraged to familiarize themselves with the new requirements and leverage the resources provided by the GST portal. Together, we can usher in a new era of transparency and accountability, safeguarding the integrity of our tax system and fostering sustainable growth in the pan masala and tobacco industry.
Views: 3
Leave a Reply