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Parliament has enacted the Health Security se National Security Cess Act, 2025, a new legislation aimed at augmenting resources for national security and public health, through the levy of a machine-based cess on specified goods, as notified in the Gazette of India Extraordinary dated December 16, 2
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It is a new legislation enacted by Parliament to generate additional revenue for national security expenditure and public health initiatives through a machine-based cess on specified goods.
Any individual or entity that owns, possesses, leases, operates, or controls manufacturing machines, or undertakes any process resulting in the production of specified goods, is liable to pay the cess, irrespective of their production volume.
The cess is calculated based on the rated speed of the machine (e.g., pouches/tins per minute), the weight of goods packed, and the type of process or machine used. For goods manufactured manually, a fixed monthly cess applies.
Yes, the cess levied under this Act is in addition to GST, excise duty, or any other applicable tax or duty.
Taxable persons must undergo mandatory registration, self-declare machines and technical parameters, pay the cess monthly by the 7th, and file monthly returns. Authorities have powers to scrutinise returns and conduct audits.
Penalties can be up to 100% of the evaded cess in fraud cases, with interest at 15% per annum for delayed payments. Serious offences involving large evasion may lead to imprisonment, search, seizure, confiscation, and arrest.
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