The Ministry of Finance (MoF) on January 02, 2025, issued Important Frequently Asked Questions (FAQs) related to the Health Security to National Security (HSNS) Cess Act, 2026 and its rules.
The FAQs are as stated:
Question 1: Who is required to register under HSNS Cess Rules ?
Answer: As per Section 3 of the Health and National Security Cess Act, 2025 (hereinafter referred to as the "Act"), registration is mandatory for every taxable person. Application for registration shall be made through the ACES portal in FORM HSNS REG- 01. Where machines are installed in more than one factory, separate registration will be required for each factory.
Question 2: I am an existing manufacturer of pan masala. By what date do I need to apply for registration under the new HSNS cess rules ?
Answer: You must apply for registration immediately after the Act and the HSNS Cess Rules come into force, i.e., on February 1, 2026. Since the obligation to pay cess begins on that date, you should submit the registration application in FORM HSNS REG- 01 on the portal as soon as possible. Your registration certificate will be effective from the date you become liable to tax, which is February 1, 2026, for existing manufacturers.
Question 3: I've applied for registration , but the authorities haven't responded in ten days. Can I start production ?
Answer: Yes. According to Rule 5(3) of the HSNS Cess Rules, if the concerned officer fails to take any action within seven working days, the application is deemed to be approved. Following this, a registration certificate in FORM HSNS REG-02 will be made available on the portal.
Question 4: Can I pay my cess liability after applying for registration only , without obtaining the registration certificate ?
Answer: Yes, you can pay your cess liability based on the temporary registration number you receive upon successful submission of FORM HSNS REG-01. As per the Act, cess is mandatory to be collected from every taxable person at the beginning of the month, but not later than the 7th of that month. New applicants who already own or control machines as of February 1, 2026, can pay cess on the portal using the said temporary registration number, even if their registration certificate (which will be issued within seven working days) is still under process.
Question 5: Once I get the registration, when do I have to file the declaration regarding my machines ?
Answer: You must file a declaration in FORM HSNS DEC-01 on the portal within seven days of receiving your registration. This declaration must clearly state the parameters of your machines (such as maximum rated speed, weight of specified goods, etc.) that are relevant for calculating the cess.
[Release ID: 2210822]
