Frequently Asked Questions (FAQs) for Health Security se National Security (HSNS) Cess Act, 2026 and HSNS Cess Rules, 2026
GST
Dated:- 5-1-2026
Q1. Who is required to get registered under the HSNS Cess Rules?
Ans. Every taxable person as per section 3 of the Health Security se National Security Cess Act, 2025 (hereinafter referred to as 'the Act') must register. An application for registration shall be made in FORM HSNS REG-01 through the ACES portal. Where machines are installed in more than one factory, separate registration shall be required for each factory.
Q2. I am an existing manufacturer of Pan Masala. By what date must I apply for registration under the new HSNS Cess Rules?
Ans. You must apply for registration immediately upon the commencement of the Act and the HSNS Cess Rules, i.e., on 1st February, 2026. Since the liability to pay cess begins from that date, you must submit the registration application in FORM HSNS REG-01 on the portal at the earliest. Your
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ent may be done on the portal by utilizing the said temporary registration number even if the registration certificate (which shall be issued within seven working days) is still being processed.
Q5. Once I get my registration, when must I file the declaration regarding my machines?
Ans. You must file the declaration in FORM HSNS DEC-01 on the portal within seven days of the grant of your registration. This declaration must specify the parameters of your machines (maximum rated speed, weight of specified goods, etc) relevant for the computation of the cess.
Example: 'ABC Ltd' receive their Registration Certificate on February 10, 2026. They must file FORM HSNS DEC-01 by February 17, 2026.
Q6. What if I add a new machine? Do I need to inform the department?
Ans. Yes. You must file a fresh declaration under section 9(3) of the Act and rule 9(2) of the HSNS Cess Rules within fifteen days of any change in the parameters relevant for the computation of cess, which includes the installat
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ification.
* You will have to pay the amount of cess so determined for the subsequent period and the past period as per rule 11(3) which mandates that you are liable to pay the differential amount of cess along with interest for the period commencing from the date of installation (for initial declarations) or the date of change in parameters (for fresh declarations) until the date of actual payment and also, pay the determined cess amount for the subsequent period.
Example: On 1st February, a manufacturer installs a machine with a speed of 300 pouches/minute and declares its details to the Department. On 1st April, the proper officer, after verification, concludes that the machine's maximum rated speed is actually 700 pouches/minute. The proper officer shall issue an order by April 30th detailing the computation of cess after giving a reasonable opportunity to be heard. The registered person shall pay the differential cess amount for February, March, and April, along with intere
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s required to be paid fully for that entire month within five days of such addition or installation.
Example: 'M/s ABC Ltd' (an existing registered entity) operates 4 machines. On August 20, 2026, they install a 5th Machine with a monthly cess liability of Rs. 1,01,00,000. They must pay the monthly cess of Rs. 1,01,00,000 by August 25, 2026. In case of any delay in payment, interest would be payable from August 26, 2026 to the date of actual payment.
Q13. What are the due dates for payment and return filing?
Ans. You must pay the monthly cess electronically by the 7th day of the current month. You must file the monthly return in FORM HSNS RET-01 by the 20th day of the succeeding month.
Q14. What happens if I file my return late?
Ans. If you fail to furnish the return by the due date, the proper officer will issue a notice requiring you to furnish such return within fifteen days of the receipt of the said notice. Further, as per section 18(1)(c) of the Act, failure to furni
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he machine or manual unit is non-operative for a continuous period of fifteen days or more. If a machine is sealed for 10 days, then desealed for two days and again sealed for another 10 days, you cannot claim abatement because the continuous period is less than 15 days.
Q18. Can I simply switch off the machine and claim abatement later?
Ans. No. You must inform the proper officer at least 3 working days before the intended closure. The proper officer will visit your factory and officially seal the machine so it cannot be operated within three days of the receipt of the intimation.
You must ensure that no manufacturing takes place on that machine during the period the machine was sealed.
Q19. Can I stop paying Cess if my machine is not working or if there is no demand?
Ans. You can claim abatement (adjustment) only if the machine is non-operative for a continuous period of 15 days or more. The procedure for claiming abatement under Chapter V of the HSNS Cess Rules should be follow
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er on or before 20th October. Say, they file the claim on 25th September, and the abatement order is passed on 7th October, they can adjust this amount against their liability for November.
Example 2: 'ABC Ltd' has installed a High-speed pouch packing machine (700 ppm). Their monthly liability (C) is Rs. 2,02,00,000. The machine is sealed on July 20th and de-sealed on August 8th. Since the shutdown (21 days) is more than 15 days, they are eligible for abatement which will be calculated separately for each month as below:
* For July:
* N: 31 days
* D: 12 days (July 20-31)
* Abatement (A1):
A1=2,02,00,00031×12=Rs. 78,19,355
For August:
*
* N: 31 days
* D: 9 days (Aug 1-9)
* Abatement (A2):
A2=2,02,00,00031×9=Rs. 58,64,516
* They can claim the abatement amount of Rs. 1,36,83,871 (A1 + A2) by applying to the proper officer on or before 20th September. Say, they file the claim on 25th August, and the abatement order is passed on 5th September, they can adjust this amo
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t inform the proper officer 3 working days in advance. The officer will supervise the uninstallation and removal. If removal is not feasible, it will be sealed.
Q25. My machine has a maximum rated speed of 700 pouches/minute, but I only run it at 300 pouches/minute. Which Schedule II slab applies to me?
Ans. You must pay the amount of cess based on the Maximum Rated Speed, not the actual operating speed. As per Rule 12 the maximum rated speed of a machine shall be taken as the maximum speed achievable by the machine, irrespective of the actual operating speed at which the machine is used to manufacture goods of any weight.
Q26. If I do not produce the specified goods in a month, but the machine was not sealed, do I still pay Cess?
Ans. Yes.
Q27. My machine was sealed from September 1st to September 15th. On September 15th evening, it was de-sealed. Am I eligible to claim an abatement?
Ans. No. Since the machine was non-operational for a continuous period of only 14 days, you are
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y manual” if no machine capable of assisting or completing any part of the manufacturing or production is installed in the factory. The amount of cess payable shall be as per Table 2 of Schedule II of the Act (11 lakhs per month).
Q 31. I am planning to start a new Pan Masala manufacturing unit in March 2026 (after the rules are notified). If I install my machines and start production on the 10th of the month, do I have to pay the Cess for the entire month?
Ans. No. As per the proviso to rule 12 of the HSNS Rules, if a newly registered person installs machines during a month, the cess payable for that specific month is calculated on a pro-rata basis. You will only pay for the number of days remaining in that month, starting from the date of installation of the machine or the start of the manual process unit, as the case may be. Further, you must pay this proportionate cess amount within five days of such installation or start.
Example: If you start a new unit and install the machine
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