Pioneer in short
Pan masala tax hits record high 88%
Pan masala manufacturers must register under the Health and National Security (HSNS) Cess Act from February 1, 2026, the Finance Ministry said on Friday. Existing manufacturers must apply immediately via the ACES portal, with separate registration required for each factory if machines are spread across multiple units. Registrants must submit a machine declaration within seven days of approval, detailing parameters like packing speed and weight. Tax officers will verify factories within 90 days. Once applied, registration is deemed approved if no action is taken within seven working days, allowing cess payment using a temporary registration number. The cess, calculated monthly based on machine capacity, must be paid by the 7th of each month; late payment incurs a minimum INR 10,000 penalty. Manufacturers must also install CCTV covering all packing and manual units, preserving footage for 24 months. The rules also cover additions or upgrades to machines, which attract full monthly cess immediately. The HSNS Cess will be levied atop GST, bringing the total tax incidence on pan masala to 88 per cent.
Delhi AQI Improves, GRAP Curbs Eased
The Commission for Air Quality Management (CAQM) on Friday revoked Stage-3 restrictions under the Graded Response Action Plan (GRAP) in Delhi-NCR after a significant improvement in air quality. The Air Quality Index (AQI) fell from 380 on Thursday to 236 on Friday afternoon, prompting the move. Non-essential construction and demolition activities, including earthwork, piling, welding, painting, and operation of stone crushers, brick kilns, and mining units, have been allowed to resume, along with the transport of construction materials. Stage-3 vehicle restrictions have also been lifted, allowing BS-III petrol and BS-IV diesel vehicles on roads, and easing bans on certain inter-state diesel buses. Physical classes for students up to Class 5 can now fully resume. However, projects closed for violations will remain shut.
