Overview of Notification No. 4/2024 – Central Tax

Simplified Explanation of Notification No. 4/2024 – Central Tax

Purpose of the Notification:

This notification sets out a special procedure for registered manufacturers of specific goods to report and manage details of their packing machines and production capacities under the Central Goods and Services Tax (CGST) Act.

Key Details:

1. Special Procedure for Manufacturers:
   • Applicability: This procedure is for manufacturers of goods listed in the schedule of this notification, including various tobacco products and pan masala.
   • Reporting Requirements: Manufacturers must follow these steps:
     1. Initial Reporting:
        • Details to Provide: Furnish details of all packing machines used for manufacturing the specified goods.
        • Deadline: Within 30 days of the notification coming into effect (15th May 2024).
        • Form to Use: FORM GST SRM-I.
     2. New Registrations:
        • Details to Provide: New manufacturers must report details of packing machines within 15 days of receiving their registration.
        • Form to Use: FORM GST SRM-I.
     3. Additional Machines:
        • Details to Provide: Report any additional packing machines installed within 24 hours.
        • Form to Use: PART (B) of Table 6 in FORM GST SRM-I.
     4. Changes in Machine Capacity:
        • Details to Provide: Report any changes in the declared capacity of machines within 24 hours.
        • Form to Use: Table 6A of FORM GST SRM-I.
     5. Existing Machines:
        • Details to Provide: Report the disposal of any existing machines within 24 hours.
        • Form to Use: Table 8 of FORM GST SRM-I.
     6. Production Capacity Declaration:
        • Details to Provide: Submit details of production capacity declared to other government departments or agencies.
        • Deadline: Within 15 days of such declaration.
        • Form to Use: Table 7 of FORM GST SRM-I.
     7. Monthly Statement:
        • Details to Provide: Submit a monthly statement of inputs and final goods produced.
        • Deadline: On or before the 10th day of the succeeding month.
        • Form to Use: FORM GST SRM-II.
     8. Chartered Engineer Certificate:
        • Details to Provide: Upload a Chartered Engineer’s certificate for the machines.
        • Form to Use: FORM GST SRM-III.
2. Schedule of Goods:
   • The notification specifies various tobacco and pan masala products under different tariff headings that are covered by this special procedure.

Example:

• Scenario: A manufacturer producing pan masala (tariff item 2106 90 20) needs to report the details of their packing machines. If they have recently installed a new packing machine, they must report this installation within 24 hours using FORM GST SRM-I. Additionally, they must submit a monthly statement of their production using FORM GST SRM-II and provide a Chartered Engineer’s certificate for the machines in FORM GST SRM-III.

Summary:

• What: A detailed procedure for reporting and managing packing machines and production capacity for specific goods under the CGST Act.
• Why: To ensure accurate tracking and compliance for manufacturers of specified goods.
• How: Through electronic reporting on the common portal using specified forms.