GST Network (GSTN) has issued a new form for traders of pan masala and tobacco products to prevent tax evasion. Through this form, the manufacturers will give details of raw materials and finished goods to the tax authorities. This new form is GST SRM-2. GSTN had earlier issued GST SRM-1 form for registration of machines of such manufacturers. GSTN informed its taxpayers on June 7, “Another form called Form GST SRM-2 is also available on the portal.
If you evade tax then businessmen will be punished
Taxpayers involved in the manufacture of pan masala and tobacco products can now give details of raw materials and finished goods purchased and consumed for the respective month.” Rajat Mohan, Executive Director, Moore Singhi said that the new form GST SRM-2 will have to provide detailed monthly details of raw materials and finished goods. He said that the purpose of this form is to increase transparency and accountability in the manufacturing process of pan masala and tobacco products.
The process of registering the machines has started.
Earlier, the GST Network (GSTN) had started a special process for manufacturers of pan masala, gutkha and similar tobacco products to register their machines. The aim of this initiative was to prevent tax evasion. The GST law was also amended through the Finance Bill 2024. It said that manufacturers of pan masala, gutkha and similar tobacco products will have to pay a fine of up to Rs 1 lakh if they fail to register their packing machinery with the GST authorities from April 1. However, this penalty provision has not been notified yet.
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