Now you will have to pay a fine of Rs 1 lakh for failing GST registration, the rule will be implemented from October

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

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

CBIC notified the 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 failing 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 in February 2024 through the Finance Bill 2024. As per the amendment, if the manufacturers of pan masala, gutkha and similar tobacco products fail to get the packing machinery registered with the GST authorities, they will have to pay a fine of up to Rs 1 lakh.

These manufacturers include

This procedure was to apply to manufacturers of branded or unbranded pan masala, 'hookah' or 'gudaku' tobacco, smoking mixtures for pipes and cigarettes, chewing tobacco (without lime tube), filter khaini, zarda scented tobacco, snuff products 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 implementation of the notification i.e. on April 1, 2024. The input and output statement FORM GST SRM-II should be filed by the 10th of the following month.