GST Network (GSTN) has introduced a specialized form for manufacturers of pan masala and tobacco products aimed at curbing tax evasion. The new form, GST SRM-II, comes hot on the heels of GSTN's recent rollout of form GST SRM-I for registering machinery used by such manufacturers.
In an update to taxpayers on June 7, GSTN announced the availability of Form GST SRM-II on its portal. This form mandates manufacturers dealing in pan masala and tobacco products to meticulously report details of inputs and outputs procured and consumed monthly.
Rajat Mohan, Executive Director at Moore Singhi, emphasized that the comprehensive reporting required by GST SRM-II aims to bolster transparency and accountability in the manufacturing process. Mohan stressed the importance for taxpayers to diligently document procurement and consumption to ensure accurate tax filings and avoid potential penalties.
The Central Board of Indirect Taxes and Customs (CBIC) had earlier announced a revamped registration and monthly return filing procedure for such manufacturers, initially set to be effective from April 1 but later extended to May 15. The overhaul seeks to enhance GST compliance within the pan masala and tobacco industry.
Moreover, amendments to the GST law via Finance Bill 2024 stipulate penalties of up to Rs 1 lakh for manufacturers failing to register their packing machinery with GST authorities, effective April 1. However, this penalty provision is pending notification.
The new procedure applies to manufacturers of various tobacco products including pan-masala, unmanufactured tobacco, 'Hookah' or 'gudaku' tobacco, among others.
Manufacturers are required to electronically furnish details of packing machines using Form GST SRM-I within 30 days of the notification, with the input and output statement (Form GST SRM-II) to be filed by the 10th of the subsequent month.
Follow us
