Archive · 2 Jan 2026
Pan masala makers must register under cess law from Feb 1
Pan masala manufacturers need to register under a new law starting February 1, 2026.
They must apply on the ACES portal and provide details about their machines.
The government will check their factories within 90 days.
They have to pay a special tax, called a cess, every month.
If they don't pay on time, they might have to pay a fine.
They also need to install cameras to record their production process.
The total tax they pay will stay the same as before, which is 88%.
Pan masala manufacturers must register under the Health and National Security Cess Act from February 1, 2026.
Registration is required for each factory with machines, and applications must be submitted on the ACES portal.
Manufacturers must file a declaration within seven days of registration, specifying machine parameters for cess computation.
Tax officers will conduct physical verification of factories and machines within 90 days of the initial declaration.
The cess must be paid monthly, with a penalty of at least Rs 10,000 for non-payment, and manufacturers must install CCTV systems to record production.
- Who
- Pan masala manufacturers
- What
- Registration under the Health and National Security Cess Act
- When
- From February 1, 2026
- Where
- On the ACES portal
- Why
- To pay a cess on their manufacturing capacity
- Registration Deadline
- February 1, 2026
- Registration Portal
- Automation of Central Excise and Service Tax (ACES) portal
- Declaration Deadline
- Within seven days of registration
- Physical Verification Deadline
- Within 90 days of initial declaration
- Cess Payment Deadline
- By the 7th day of each month
- Penalty for Non-Payment
- At least Rs 10,000
- CCTV Footage Retention
- 24 months
- Total Tax Incidence
- 88%
