Pan Masala Firms to Pay Full Cess for Mid-Month Machine Installations

The government has announced new rules for pan masala companies.

If a company adds a new machine in the middle of the month, it must pay the full month's cess for that machine, even if it was only used for a few days.

The cess is based on the machine's maximum capacity, not how much it's actually used.

New companies starting in the middle of the month will pay cess on a pro-rata basis.

Starting February 1, 2026, the GST rate for pan masala will be 40%, and the cess will be 48%.

Companies must register and report new machines within 15 days.

If a machine is not used for 15 continuous days, the company can get an adjustment in the cess paid.

The new rules aim to make taxation fairer and more transparent for pan masala production.