The Health Security to National Security Cess Bill, 2025 will be introduced in the Lok Sabha tomorrow. Finance Minister Nirmala Sitharaman will present this bill in the House. This bill will apply to pan masala and similar products. According to the proposed bill, this cess will be imposed on the machines and processes used in the production of pan masala and similar items.
The money received from this cess will be used for national security. Along with this, work will also be done to increase the resources of health services. Let us tell you that currently 28 percent GST is applicable on Pan Masala.
What is the Health Care National Security Cess Bill?
The Health Security National Security Cess Bill, 2025 will replace the compensation cess imposed on pan masala. Its objective is to raise additional resources for expenses related to national security and public health. Under this, cess will be imposed on those machines or processes through which the said goods are manufactured or produced. Currently, 28 percent GST is levied on tobacco and pan masala, and along with it, compensation cess (cess) is also collected at different rates.
On which products will this bill apply?
This cess will be linked to the production capacity of these machines or other processes and not to the actual quantity of goods produced. The Bill provides for taxpayers (taxable persons) to self-declare all machines or processes for each factory or premises, and the cess will be determined as a whole for each place. There is also a provision in this that the competent authorities can investigate and verify these declarations.
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