New National Security & Health Cess Act Enforced from February 2026

Official Enforcement Date
The Central Government has officially notified that the provisions of the Health Security se National Security Cess Act, 2025 will come into force starting February 1, 2026.
Legislative Background
This enforcement follows Notification No. F. No. 25014/2/2025-DS(ST)-DOR(Pt.5) issued by the Ministry of Finance on December 31, 2025. The Act (No. 35 of 2025) previously received Presidential assent on December 15, 2025.
Objective of the Act
The primary goal of this legislation is to augment financial resources specifically for meeting expenditures related to national security and public health.
Scope of Levy
The Act introduces a cess on specified goods manufactured or produced using notified machinery, such as Form, Fill and Seal Machines and similar packing equipment listed in the Act’s Schedule.
Calculation Methodology
The cess will be computed on a monthly basis, determined by factors such as the speed of the machine, its capacity, and the packing weight as prescribed by the regulations.
Implementation Authority
The Central Board of Indirect Taxes and Customs (CBIC) is tasked with implementing the Act through notified rules and procedures, covering aspects like registration, self-declaration, payment, and audit.
Compliance Advice
Stakeholders in the affected manufacturing sectors are advised to note the commencement date and ensure all necessary compliance measures are in place before the Act takes effect on February 1, 2026.