Special procedure to plug leakage in pan masala, gutkha to be operational from April 1
To plug the revenue leakage, the Central Board of Indirect Taxes and Customs (CBIC) has reworked the special procedure for registration to ensure capacity-based taxation from manufacturers of pan masala, gutakha and similar items. The new mechanism will replace the system notified last year and will come into effect from April 1.
The procedure is based on recommendation by GST Council. In its meeting, dated July 11. It recommended issuance of notification prescribing a special procedure to be followed by the manufacturers of tobacco, pan masala & other similar items for registration of machines and for filing of special monthly returns. Now, it is expected that a new section (122A) will be inserted in CGST Act providing for special penalty for non-registration of machines by such manufacturers.
