New GST Forms Aim to Combat Tax Evasion in Pan Masala and Tobacco Sectors
| Aspect | Details |
|---|---|
| Sector | Pan masala and tobacco sectors |
| Initiative | Introduction of new forms and procedures on the GST portal to combat tax evasion |
| Forms Introduced | 1. Form GST SRM-I: For registering and disposing of manufacturing machines.2. Form GST SRM-II: For reporting monthly inputs and outputs. |
| Implementation Date | Initially set for April 1, deferred to May 15, 2024 |
| Compliance Requirements | - Register all packing machines within 30 days of May 15, 2024. Additional machines must be reported within 24 hours. - Monthly reporting of inputs and outputs by the 10th of the following month. |
| Penalties | Manufacturers failing to register packing machinery may face fines of up to ₹1 lakh (specific provisions not yet notified). |
| Targeted Goods | Pan masala, unmanufactured tobacco (without lime tube), hookah or gudaku tobacco, smoking mixtures, chewing tobacco, filter khaini, jarda-scented tobacco, snuff, branded or unbranded gutkha. |
| Definition of Brand Name | Includes any trade name, symbol, monogram, label, signature, or invented word associated with the specified goods, regardless of registration. |
| Recommendations | Proposed by Group of Ministers (GoM): - Track-and-Trace System: Electronically track products from production to sale. - Detailed Machine Registration: Include make, year, tracks, capacity. |