The Union Finance Ministry recently introduced the Finance Bill 2024 in which the government amended the Central GST Act to impose a penalty on every unregistered machine. Do you know what penalty has been imposed on the unregistered machines? According to the Finance Bill 2024, the unregistered machines will receive a penalty of Rs 1 lakh. In addition, the non-compliant machinery can also be seized. The latest amendment to the Central GST Act will primarily affect the manufacturers of pan masala, gutka, and other tobacco products. Since this news broke out, the manufacturing industry has become more cautious about the registration of machines. In this article, there is a lot more to know about the penalty on unregistered machines.
Finance Bill 2024 Says Unregistered Tobacco Machines To Attract 1 Lakh Penalty
All the tobacco companies have been sent a final warning to register their packing machines, if fail they can face a penalty of up to Rs 1 lakh. The Union Finance Ministry has made it compulsory to register all the packing machinery with the GST authorities. Do you know what is the last date for registering to pack machinery with the GST authorities? According to the reports, the manufacturers of pan masala, gutka, and other tobacco products have to register their packing machinery by March 31, 2024.
From April 1, 2024, the new Finance Bill will be in effect, in which all the unregistered packing machinery will be liable to face a penalty of up to Rs 1 lakh. The decision to impose such strict penalties on packing machinery was taken to curb revenue leakage in the tobacco manufacturing sector. As mentioned, the Finance Bill 2024 amended the Central GST Act where a penalty of Rs 1 lakh has been imposed on every unregistered machine. Furthermore, the machinery would be seized if found non-compliance. In some cases, confiscation can be levied. Swipe down the page for more details.
The announcement of a Rs 1 lakh penalty on all the unregistered machines, came after the tax authorities notified a special procedure last year to register the tobacco manufacturers’ packing machines. Revenue Secretary Sanjay Malhotra said, “However, there were no penalties in case they failed to register. So the Council decided that there should be some penalties. That’s why in the Finance bill you find a penalty of up to a lakh of rupees for not registering machines,” This penalty has been imposed to keep a watch over the productivity of tobacco products. Stay tuned.