GSTN Introduces Form for Tobacco Manufacturers to Report Inputs and Outputs to Tax Authorities
By: Admin
June 08, 2024
Categories: GST Recent News
4 Min Read
The GST Network (GSTN) has introduced a specialized form for manufacturers of pan masala and tobacco products to report their inputs and outputs to tax authorities in a bid to prevent tax evasion. This new form, GST SRM-II, follows the recent introduction of GST SRM-I, which is used for registering the machines of such manufacturers.
According to an update from GSTN on June 7, “The second form, Form GST SRM-II, is now available on the portal. Taxpayers involved in the manufacture of Pan Masala and Tobacco products can report the details of inputs procured and outputs consumed for the relevant month.”
An expert highlighted that Form GST SRM-II mandates detailed monthly reporting of inputs and outputs. “This form aims to improve transparency and accountability in the manufacturing processes of Pan Masala and Tobacco products. Taxpayers must carefully document their procurement and consumption to prevent discrepancies and ensure accurate tax filings,” the expert explained. Taxpayers are encouraged to familiarize themselves with the instructions and details in these forms to ensure smooth compliance and avoid potential penalties.
In January, the Central Board of Indirect Taxes and Customs (CBIC) announced a new registration and monthly return filing procedure to enhance GST compliance for manufacturers of pan masala and tobacco products, effective April 1. This date was later extended to May 15.
The revamped procedures for registration, record-keeping, and monthly filing aim to enhance GST compliance for these manufacturers. The GST law has also been amended via the Finance Bill 2024, stipulating that manufacturers of pan masala, gutkha, and similar tobacco products will face penalties of up to Rs 1 lakh if they fail to register their packing machinery with GST authorities from April 1. However, this penalty provision is yet to be notified.
The new procedures apply to manufacturers of pan-masala, unmanufactured tobacco (without lime tube) with or without a brand name, ‘Hookah’ or ‘gudaku’ tobacco, smoking mixtures for pipes and cigarettes, chewing tobacco (without lime tube), filter khaini, jarda scented tobacco, snuff, and branded or unbranded ‘Gutkha’. These manufacturers must electronically furnish the details of their packing machines in Form GST SRM-I within 30 days of the notification’s effective date, i.e., April 1, 2024. The input and output statement, GST SRM-II, must be filed by the 10th of the succeeding month.