Overview
- Passed by voice vote on December 5, the money bill now moves to the Rajya Sabha for non-binding recommendations within 14 days before implementation steps are notified.
- The cess targets machines and other processes used to make pan masala, sits over the 40% GST on consumption, and is designed as a deterrent on demerit goods.
- Finance Minister Nirmala Sitharaman said proceeds will help finance public health and national security, with allocations to states subject to audit by the CAG.
- The law mandates registration and self-declared machine capacity per factory, monthly returns by the 7th, audits, search-and-seizure powers, and penalties including jail for large-scale evasion.
- Opposition MPs urged a select committee review and warned of burdens on MSMEs, a return of inspector-style oversight, and enforcement gaps, especially in tracking small or illegal units.