Background:
Earlier, the 49th Meeting of the GST Council was held on February 18, 2023 in New Delhi, wherein the Council has approved the recommendation of the Group of Ministers (“GoM”) on Capacity Based Taxation and Special Composition Scheme. The report of GoM inter alia stated that –
- the capacity based levy not to be prescribed;
- compliance and tracking measures to be taken to plug leakages/evasions;
- exports of such commodities to be allowed only against LUT with consequential refund of accumulated ITC;
- compensation cess levied on such commodities to be changed from ad valorem to specific tax based levy to boost the first stage collection of the revenue
In accordance of recommendation of GoM, the GST Council in its 50th meeting, inter alia recommended issuing a notification under Section 148 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) prescribing a special procedure to be followed by manufacturers of tobacco, pan masala & other similar items inter alia for registration of machines and for filing of special monthly returns.
Notification:
Now, the CBIC vide Notification No. 30/2023 – Central Tax dated July 31, 2023, notified the procedure for manufacturers of goods stated in SCHEDULE –
1. Details of Packing Machines
- All the existing registered persons engaged in manufacturing of the goods mentioned in Schedule shall furnish the details of packing machines being used for filling and packing of pouches or containers in FORM SRM-I, within 30 days of issuance of this notification, electronically on the common portal,—
- Any person intending to manufacture goods as mentioned in Schedule and who has been granted registration after the issuance of this notification, shall furnish the details of packing machines being used for filling and packing of pouches or containers in FORM SRM-I on the common portal, within 15 days of grant of such registration.
- The details of any additional filling and packing machine being installed in the registered place of business shall be furnished, electronically on the common portal, by the said registered person within 24 hours of such installation in FORM SRM-IIA.
- Upon furnishing of such details in FORM SRM-I or FORM SRM-IIA, a unique ID shall be generated for each machine, whose details have been furnished by the registered person, on the common portal.
- In case, the said registered person has submitted or declared the production capacity of his manufacturing unit or his machines, to any other government department or any other agency or organization, the same shall be furnished by the said registered person in FORM SRM-IA on the common portal, within 15 days of filing said declaration or submission:
Provided that where the said registered person has submitted or declared the production capacity of his manufacturing unit or his machines, to any other government department or any other agency or organization, before the issuance of this notification, the same shall be furnished by the said registered person in FORM SRM-IA on the common portal, within 30 days of issuance of this notification.
- The details of any existing filling and packing machine removed from the registered place of business shall be furnished, electronically on the common portal, by the said registered person within 24 hours of such removal in FORM SRM-IIB.
2. Additional records to be maintained by the registered persons manufacturing the goods mentioned in the Schedule
- Every registered person engaged in manufacturing of goods mentioned in Schedule shall keep a daily record of inputs being procured and utilized in quantity and value terms along with the details of waste generated as well as the daily record of reading of electricity meters and generator set meters in a format as specified in FORM SRM-IIIA in each place of business.
- Further, the said registered person shall also keep a daily shift-wise record of machine-wise production, product-wise and brand-wise details of clearance in quantity and value terms in a format as specified in FORM SRM-IIIB in each place of business.
3. Special Monthly Statement
- The said registered person shall submit a special statement for each month in FORM SRM-IV on the common portal, on or before the tenth day of the month succeeding such month.
SCHEDULE
|
S.No. |
Chapter / Heading / Sub-heading / Tariff item |
Description of Goods |
| (1) | (2) | (3) |
| 1. | 2106 90 20 | Pan-masala |
| 2. | 2401 |
Unmanufactured tobacco (without lime tube) – bearing a brand name |
| 3. | 2401 |
Unmanufactured tobacco (with lime tube) – bearing a brand name |
| 4. | 2401 30 00 | Tobacco refuse, bearing a brand name |
| 5. | 2403 11 10 |
‘Hookah’ or ‘gudaku’ tobacco bearing a brand name |
| 6. | 2403 11 10 |
Tobacco used for smoking ‘hookah’ or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku’ not bearing a brand name |
| 7. | 2403 11 90 | Other water pipe smoking tobacco not bearing a brand name. |
| 8. | 2403 19 10 | Smoking mixtures for pipes and cigarettes |
| 9. | 2403 19 90 | Other smoking tobacco bearing a brand name |
|
10. |
2403 19 90 | Other smoking tobacco not bearing a brand name |
| 11. | 2403 91 00 |
“Homogenised” or “reconstituted” tobacco, bearing a brand name |
| 12 | 2403 99 10 | Chewing tobacco (without lime tube) |
| 13. | 2403 99 10 | Chewing tobacco (with lime tube) |
| 14. | 2403 99 10 | Filter khaini |
| 15. | 2403 99 20 | Preparations containing chewing tobacco |
| 16. | 2403 99 30 | Jarda scented tobacco |
| 17. | 2403 99 40 | Snuff |
| 18. | 2403 99 50 | Preparations containing snuff |
| 19. | 2403 99 60 | Tobacco extracts and essence bearing a brand name |
| 20. | 2403 99 60 | Tobacco extracts and essence not bearing a brand Name |
| 21. | 2403 99 70 | Cut tobacco |
| 22. | 2403 99 90 | Pan masala containing tobacco ‘Gutkha’ |
|
23. |
2403 99 90 | All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name |
| 24. | 2403 99 90 |
All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name |
Explanation.-
- In this Schedule, “tariff item”, “heading”, “sub-heading” and “Chapter” shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975.
- The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification.
- For the purposes of this notification, the phrase “brand name” means brand name or trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person.
The Notification along with the Annexures can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009808/ENG/Notifications
(Author can be reached at info@a2ztaxcorp.com)
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