The GST Network (GSTN) has introduced a new form, GST SRM-II, for pan masala and tobacco manufacturers, requiring detailed monthly reporting of inputs and outputs. This step aims to curb tax evasion and follows the recent rollout of form GST SRM-I for machine registration.
On 7 June 2024, GSTN announced, ‘The second form, Form GST SRM-II, is now available on the portal. Manufacturers of Pan Masala and Tobacco products must report details of inputs and outputs for the relevant month.’
Rajat Mohan, Executive Director at Moore Singhi, emphasised the importance of this form, stating, ‘Form GST SRM-II enhances transparency and accountability in the manufacturing process. Manufacturers must meticulously document their inputs and outputs to ensure accurate tax filings and avoid discrepancies.
Taxpayers are urged to familiarise themselves with the forms and instructions to ensure compliance and avoid penalties. The Central Board of Indirect Taxes and Customs (CBIC) introduced new registration and monthly return procedures in January to boost GST compliance for these manufacturers. Initially set for April 1, the implementation date was extended to May 15.
The Finance Bill 2024 also amended GST law, imposing penalties up to ₹1 lakh for manufacturers who fail to register their packing machinery by April 1. However, this penalty provision is yet to be notified.
The new procedures apply to a range of tobacco products, including pan-masala, unmanufactured tobacco, ‘Hookah’ tobacco, smoking mixtures, chewing tobacco, filter khaini, jarda scented tobacco, snuff, and ‘Gutkha’. Manufacturers must submit Form GST SRM-I electronically within 30 days of notification and file GST SRM-II by the 10th of the following month.
The GST Network’s introduction of Form GST SRM-II is a crucial step towards enhancing transparency and accountability in the tobacco industry. By mandating detailed monthly reporting of inputs and outputs, the government aims to curb tax evasion and ensure fair competition. This move necessitates meticulous documentation from manufacturers, impacting their operational processes and potentially increasing compliance costs. However, it also ensures a more level playing field, promoting adherence to uniform standards across the sector.
Navigating GST compliance, especially with new regulations like Forms GST SRM-I and SRM-II, can be challenging. Vakilsearch simplifies GST registration and compliance services, offering expert guidance and end-to-end support. Our team ensures timely and accurate filings, helping businesses avoid penalties and focus on growth. Contact Vakilsearch today to streamline your GST compliance and stay ahead in your industry.
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