Section 122A: Penalty for Unregistered Machines from 1 Oct 2024

Section 122A was introduced by the Finance Act, 2024 and will come into effect from 1st October 2024.

Purpose

Section 122A was introduced to imposes penalties on manufacturers of certain goods if they fails to register machines as per the special procedure notified under Section 148 of the CGST Act.

Specified Goods

Tobacco, pan-masala and related items.

Penalty Amount for Unregistered Machines

An amount of Rs 1 Lakh per machine will be penalized from October 1, 2024

Impact on Non-Payment of Penalty

Unregistered machines will be seized and confiscated.

Relief from Seizure and Confiscation

You can get relief from seizure and confiscation if registration of machine is done within 3 days of receiving the penalty order.

FAQs

When will the Section 122A come into effect?

Section 122A will be effective from October 1, 2024.

Who will be affected by this new provision?

Manufacturers of goods for which a special machine registration procedure has been notified, such as those producing tobacco, pan masala, and similar items.

What is the penalty amount for non-registering a machine?

The penalty is Rs 1 lakh for per machine.

Can unregistered machines be confiscated?

Yes, unregistered machines are liable for seizure and confiscation.