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Informist, Thursday, Jan. 1, 2026

 

 

NEW DELHI – Manufacturers of chewing tobacco, gutkha and similar products will have to install a functional closed-circuit television camera system covering all packing machines by Feb. 1 and preserve the footage for at least 24 months, according to a government directive issued Thursday.

 

 

Manufacturers will also have to disclose with excise authorities the number of machines and their capacities and can also claim abatement in excise duty in case a machine is non-functional for a minimum of 15 consecutive days, according to the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules notified by the finance ministry.

"Those manufacturing in other forms (such as tins) have to pay the applicable duty on assessable value," the ministry said.

The government on Wednesday notified the additional excise duties that would be levied on chewing tobacco and related products on top of the 40% goods and services tax from Feb 1. Chewing and jarda scented tobacco, and gutkha will attract an excise duty of 82% and 91%, respectively.

Manufacturers of such tobacco products packed in pouches will have to disclose number of machines, specifications regarding the machines such as maximum rated capacity and gear box ratios and the details of retail sale prices to the excise tax authorities.

The jurisdictional Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, will determine the annual capacity of production after conducting physical inspection of the factory and verification of technical specifications of the machines. The annual capacity of production shall be determined by multiplying the quantity of notified goods deemed to be produced in a month with 12 months, the directive said.

The manufacturer has to pay the duty fully for the entire month in which the machines have been installed.

The rules state that a manufacturer can claim abatement on non-operation of any machine for a continuous period of 15 days and it is not dependent on whether this period falls within the same calendar month. In order to claim abatement, the manufacturer must intimate the department at least three working days in advance and the machine must be sealed by the excise department.  End

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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