India requires pan masala makers to register and pay new health cess from Feb 1

Economic Times
Economic Times
1h ago
4 views
Pan masala makers in India must register for the new cess law and comply with machine declaration, payment, and CCTV rules.
India requires pan masala makers to register and pay new health cess from Feb 1
A What happened
From February 1, 2026, pan masala manufacturers in India must register for a new health and national security cess separately for each factory using the ACES portal. They need to declare machine details, pay the cess monthly, and install CCTV systems monitoring packing and manual stations. This registration and compliance are needed to enforce tax and security regulations, with penalties for non-compliance. The total tax burden remains at 88%, combining GST and the new cess.
★

Key insights

  • 1

    Separate registration per factory: Manufacturers must register each factory individually on the ACES portal to comply with the new law.

  • 2

    Monthly cess payment and declarations: Cess payments are required monthly and tied to machine parameters like packing speed.

  • 3

    Mandatory CCTV and footage retention: Factories must have CCTV monitoring packing processes, retaining footage for 24 months.

Takeaways

The new registration and compliance rules aim to ensure proper tax collection and security monitoring in the pan masala industry.

Topics

Business & Markets Economy World & Politics Policy & Regulation

Stay ahead with OwlBrief

Daily briefs that distill the world’s important events — clear, verified, and designed for understanding.

Create Free Account Sign In

Newsletter

Get OwlBrief in your inbox

A fast, high-signal digest of the day’s most important events — plus the context that makes them make sense.

Quick to read. Useful all day.