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GST Council has made it clear that tobacco and related products will be the only category to migrate to the new GST 2.0 framework at a later stage, even as the rest of the tax overhaul goes live from September 22, 2025.
The authorities have detected 61 cases of tax evasion by dealers of tobacco products such as gutka, cigarettes and pan masala across the country, amounting to ₹104.38 crore till June this financial year.
Cigarettes could be among the first products to be brought under the “track and trace mechanism” that was cleared by the GST Council on Saturday, with pan masala also being a likely candidate for inclusion.
The GST Network (GSTN) has rolled out a special form for manufacturers of pan masala and tobacco products to report inputs and outputs procured with tax authorities to check evasion.
Form GST SRM-II is also available on the portal. Taxpayers dealing in the manufacture of Pan Masala and Tobacco products can now report the details of inputs and outputs procured and consumed for the relevant month.
Government had issued a notification to seek information from taxpayers dealing in the goods mentioned therein vide Notification No. 04/2024 – Central Tax dated 05-01-2024. Two forms have been notified vide this notification namely GST SRM-I and GST SRM-II.
CBIC issued Notification No. 08/2024 – Central Tax dated 10.04.2024 seeking extension of the timeline for implementation of Notification No. 04/2024-CT dated 05.01.2024 from 1st April, 2024 to 15th May, 2024.
Pan masala and tobacco manufacturers that do not register their packing machines with goods and services tax (GST) authorities may face a penalty of Rs 1 lakh per machine. Further the machine could also be confiscated by the GST department.…
CBIC notifies special procedure for registered person engaged in manufacturing of the Tobacco, Pan Masala etc.