Government Notifies Health Security se National Security Cess Rules, 2026

Government Notifies Health Security se National Security Cess Rules, 2026

The Central Government has established a comprehensive framework for the implementation of the Health Security se National Security Cess Act, 2025. The key details of the newly notified rules are as follows:

• Notification & Effective Date:

  • Notified By: Ministry of Finance, Department of Revenue via Notification No. 01/2026 – HSNS Cess, G.S.R. 02(E), dated January 1, 2026.

  • Effective From: February 1, 2026.

• Objective:

  The rules aim to provide a transparent, technology-driven mechanism for the levy, assessment, and administration of the cess on specified goods, ensuring uniform implementation and promoting voluntary compliance.

• Key Provisions:

  • Registration Framework: Mandatory electronic registration (FORM HSNS REG-01) is required for all taxable persons. Separate registrations are needed if machines are installed in more than one factory. A temporary registration number allows for cess payment pending final approval.

  • Declaration of Machines: Registered persons must electronically file declarations (FORM HSNS DEC-01) regarding installed machines or manual processes. These are subject to physical verification by proper officers.

  • Payment & Returns: Cess is calculated monthly based on machine speed or process nature and must be paid electronically by the 7th day of the relevant month. Monthly returns (FORM HSNS RET-01) are due by the 20th day of the succeeding month.

  • Abatement for Non-Operation: A formula-based abatement is available if machines or processes remain non-operational for a continuous period of 15 days or more, subject to prior intimation and sealing of machines.

  • Audit & Records: Tax authorities are empowered to conduct audits, and registered persons must maintain detailed records of production, raw materials, and electricity consumption for a minimum prescribed period.

  • Surveillance: Installation of CCTV systems covering all packing machines and process areas is mandatory, with footage to be preserved for a minimum of 24 months.

• Legal Remedies:

  A structured appellate mechanism allows aggrieved persons to file appeals before the Commissioner (Appeals) and the Appellate Tribunal within prescribed timelines.

Source :- Notification-related-to-Health-Security-se-National-Security-Cess-Rules-2026