The Ministry of Finance, Department of Revenue, has issued Notification No. 03/2026-HSNS Cess dated May 20, 2026, introducing the Health Security & National Security Cess (Second Amendment) Rules, 2026. The amendment brings important procedural changes to Rule 35 of the existing Health Security & National Security Cess Rules, 2026.
According to the official notification published in the Gazette of India, the revised rules came into effect immediately from the date of publication.
What Has Changed?
The latest amendment focuses on streamlining procedural and administrative provisions under Rule 35 of the HSNS Cess framework. Three major changes have been introduced:
1. Sub-rule (3) Omitted
The government has decided to remove sub-rule (3) of Rule 35 entirely. While the notification does not elaborate on the operational impact, the omission indicates an effort toward simplification of existing procedural requirements.
2. Budget Division Reference Removed
In sub-rule (5), the phrase:
"Budget Division, Department of Economic Affairs in consultation with"
has been omitted.
This amendment appears to reduce inter-departmental procedural involvement, potentially helping speed up administrative processes linked to the cess framework.
3. Authority for Accounts Approval Revised
A significant modification has been made in sub-rule (6) concerning approval and accounting authority.
Earlier, the rule referred to:
"the Principal Chief Controller of Accounts, Central Board of Indirect Taxes and Customs, and as approved by the Comptroller and Accountant General of India"
This has now been replaced with:
"the Chief Controller of Accounts (Finance)"
The move is expected to simplify approval mechanisms and centralize financial oversight under a designated authority.
Objective Behind the Amendment
The second amendment appears aimed at reducing procedural complexity and improving administrative efficiency in implementing the Health Security & National Security Cess framework introduced earlier this year.
Experts believe such revisions may help in ensuring smoother operational compliance and quicker decision-making within the revenue administration structure.
Official copy of the notification is as follows
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