HSNS Cess on Pan Masala Manufacturing to Take Effect From February 1, 2026: A Look at Mandatory Registration, Declaration, Monthly Payment and Returns Prescribed
Central Board of Indirect Taxes and Customs
The Central Board of Indirect Taxes and Customs has notified the implementation of the Health Security se National Security (HSNS) Cess Act, 2025 from February 1, 2026. This marks a new cess regime for manufacturers of pan masala. The cess is to be levied on machines or manufacturing processes used in the production of pan masala.
As per the notification, the HSNS Cess is applicable to every taxable person engaged in pan masala manufacture. Such persons are mandatorily required to obtain a registration through the GST portal by enrolling as a new user under the HSNS Cess tab. During enrollment, manufacturers must furnish their name, PAN, email address and mobile number to obtain an Enrolment Reference Number (ERN). The ERN will then be used to fill Form HSNS REG-01.
After registration, manufacturers are required to file a cess declaration in Form HSNS DEC-01 within seven days from the date of grant of registration. The HSNS Cess is required to be paid on a monthly basis through electronic mode. Monthly payment is to be made using Form HSNS PMT-01 and must be completed by the 7th day of the relevant month. The payment can be made by accessing the Taxpayer Dashboard and selecting the e-Payment option under the Menu tab.
In addition to payment, manufacturers are also required to file a monthly return in Form HSNS RET-01. The return must be filed electronically by the 20th day of the succeeding month. This, too, can be filed through the Taxpayer Dashboard by selecting the Return option under the Menu tab.
The CBIC has clarified that detailed provisions governing the levy, registration, payment and return filing obligations are contained in Department of Revenue Notification Nos. S.O. 6153(E) dated December 31, 2025 and 01/2026-HSNS Cess dated January 1, 2026.
For further queries, taxpayers may contact the CBIC Mitra Helpdesk via email or the dedicated helpline number.
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