CBIC notifies special procedure for filing returns for pan masala, tobacco manufacturers

In a move aimed at improving compliance under the goods and services tax (GST), manufacturers of pan masala and tobacco products would have to follow a new procedure for registration and filing monthly returns from April 1. 

Based on a decision of the GST Council, the Central Board of Indirect Taxes and Customs (CBIC) has notified a special procedure to be followed by a registered person engaged in manufacturing of these goods for the registration and disposal of packing machines. The move is aimed at assessing the production and packaging facility of such units to ensure correct GST is paid as the sector is seen to be prone to evasion. 

All such manufacturers would have to furnish the details of the packing machines that are used for filling of packages on the GST portal within 30 days of the notification coming into effect or by May 1, 2024. 

Further, any person planning to manufacture such products would also have to register and provide details of the packing machines within 15 days of the grant of registration. Details of any additional machines used for packing would also have to be furnished on the portal, the CBIC has said. 

Upon furnishing these details, a unique registration number would be generated for each such machine. 

“In case, the said registered person has submitted or declared the production capacity of his manufacturing unit or his machines, to any other government department or any other agency or organisation, the same shall be furnished by the said registered person in Table 7 of FORM GST SRM-I on the common portal, within 15 days of filing such declaration or submission,” the CBIC has further said. 

The registered persons would also submit a special monthly statement on the GST portal before the 10th of each month. 

Further, the details of any existing filling and packing machine disposed of from the registered place of business shall be furnished, electronically on the common portal, by the registered person within 24 hours of the disposal. 

Based on the  recommendations of the Group of Ministers (GoM) on Capacity based taxation and Special Composition Scheme, the GST Council had in its meeting in July announced a number of compliance-related measures for the sector including a special procedure for registration of machines and filing monthly returns.