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Taxation Central Ministry of Finance Customs Act, 1962

Health Security se National Security Cess Act, 2025

16-Dec-2025 | CG-DL-E-16122025-268562

Ministry of Law and Justice has issued Health Security se National Security Cess Act, 2025 effective from the date yet to be notified by Central Government.

Key Highlights:
1. Applicability - All persons who own, control, operate, or manage machines or processes used to manufacture or produce specified goods (as listed in Schedule I which is pan masala and any other goods that may be notified by the central government), whether directly or through job workers or third parties.
2. Levy and Computation of Cess - The cess is levied per machine or per process, based on factors such as machine speed, capacity, packing weight, and type of process, at rates specified in Schedule II.
3. Regulatory Reporting and Declarations -
a. Taxable persons must file a self-declaration detailing machines, processes, technical parameters, and packing details.
b. Any change, addition, or installation of machines/processes must be reported within the prescribed time (generally within 15 days).
c. Declarations are subject to verification, calibration, and audit by tax authorities.
4. Returns and Payment of Cess -
a. Cess must be self-assessed and paid monthly, generally by the 7th day of the month.
b. Monthly returns must be filed in the prescribed form and manner.
c. Delayed payment attracts interest, and non-filing or incorrect filing may lead to assessment, penalties, or best-judgment assessment.
5. Audit, Enforcement, and Penalties - Authorities have powers for audit, inspection, search, seizure, assessment, and recovery. Non-compliance, suppression, or fraud can result in penalties, confiscation of goods/machines, and prosecution, with appellate remedies available up to the Supreme Court.


For more information, please refer to the attached document.

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