HSNS Cess on Pan Masala Manufacturing from 1st February 2026 – Complete Compliance Guide

Introduction

The Government of India has introduced a new statutory levy on Pan Masala manufacturing under the Health Security se National Security (HSNS) Cess Act, 2025, effective from 1st February 2026.

This is not an amendment to GST.
This is a separate cess regime, administered through the CBIC framework, with independent registration, payment, declaration, and return filing requirements.

Any manufacturer assuming this will be “adjusted later” or “clubbed with GST” is fundamentally misunderstanding the law.

What is HSNS Cess?

HSNS Cess is a levy imposed on machines/processes used for the manufacture of Pan Masala.
The cess is not linked to turnover, but to manufacturing capacity and operational machinery, making compliance unavoidable once manufacturing activity exists.

Every taxable person engaged in Pan Masala manufacture is mandatorily required to:

• Register under HSNS
• Pay monthly cess
• File prescribed declarations and returns

Effective Date

📅 Applicable from: 1st February 2026

All compliances—registration, payment, declaration, and returns—apply from this date onward.

Delaying action until February is a strategic mistake. Registration preparation must start well in advance.

Mandatory HSNS Registration (Form HSNS REG-01)

Every Pan Masala manufacturer must obtain HSNS registration.

Process:

1. Visit www.cbic-gst.gov.in
2. Select “New User” under the HSNS Cess tab
3. Enrol using:
   • Name
   • PAN
   • Email
   • Mobile number
4. Receive Enrollment Reference Number (ERN)
5. File Form HSNS REG-01
6. Obtain Temporary Registration Number (TRN) for initial payment

⚠️ No registration = no lawful manufacturing under the HSNS framework.

Monthly HSNS Cess Payment (Form HSNS PMT-01)

HSNS Cess must be paid electronically every month.

Due date:

• 7th day of the month
• Example: February 2026 liability → payable by 7th February 2026

Payment Mode:

• Login to Taxpayer Dashboard
• Select e-Payment under the Menu tab

Missing this deadline will attract interest and penal consequences.

Cess Declaration (Form HSNS DEC-01)

After registration, manufacturers must file a cess declaration.

Timeline:

• Within 7 days of grant of registration

Filing Method:

• Login to Taxpayer Dashboard
• Select Declaration under the Menu tab

This declaration captures critical operational details. Errors or delays here can invite scrutiny.

Monthly Return Filing (Form HSNS RET-01)

Apart from payment, monthly returns are compulsory.

Due date:

• 20th day of the succeeding month
• Example: February 2026 return → due by 20th March 2026

Filing Path:

• Taxpayer Dashboard → Return under Menu tab

Payment without return filing is incomplete compliance.

Legal References

• DoR Notification No. S.O. 6153(E) dated 31.12.2025
• Notification 01/2026 – HSNS Cess dated 01.01.2026

These notifications legally anchor the HSNS framework. Any compliance strategy must be aligned strictly with them.

Key Compliance Risks to Avoid

• Assuming HSNS is part of GST → It is not
• Delaying registration → System-based enforcement
• Missing early-month payment deadlines → Automatic interest
• Filing returns casually → Audit exposure

This cess targets a specific industry, and enforcement will be focused, not random.

Conclusion

The HSNS Cess marks a new compliance layer for Pan Masala manufacturers, separate from GST and income tax.

Those who prepare early will comply smoothly.
Those who delay will deal with notices, penalties, and avoidable legal stress.

This is not a “watch and wait” law.
This is a prepare, register, and comply law.