The Ministry of Finance (MoF) on January 01, 2026, issued the Health Security se National Security Cess Rules, 2026.
This shall come into force from February 01, 2026.
The following has been stated namely: -
• The Rules prescribe a mandatory registration process for all persons owning, operating or controlling packing machines or undertaking manual processes for the manufacture of specified goods. Registration is to be completed online through the CBIC portal, factory-wise, and a registration certificate is issued after verification by the proper officer.
• A monthly return filing mechanism has been introduced through Form HSNSRET-I, requiring registered persons to file returns by the 20th of the succeeding month. The return captures machine-wise details, applicable cess rates, sealing/de-sealing information, abatement claims, and challan-wise payment particulars.
• The Rules provide a structured system for the abatement of cess in cases where machines remain non-operational for approved periods. Such abatement must be adjusted in the relevant return period based on orders issued by the competent authority, ensuring accurate net cess computation.
• To strengthen compliance and enforcement, the Rules mandate installation of CCTV surveillance in manufacturing premises, preservation of footage for 24 months, supervised sealing or removal of machines, provisions for provisional release of seized goods on execution of bonds, and a detailed appeal mechanism against orders passed under the Act.
The detailed notification is attached below.
[Notification no. - 01/2026 - HSNS Cess]
