The GST council has approved a proposal to implement the ‘Track and Trace Mechanism’ for specified evasion-prone commodities.
The GST Council will track cigarettes and pan masala to stop tax evasion.
A unique code will be placed on these products. It will help the government follow the products.
World Health Organization (WHO) has also supported such mechanisms under the Convention on Tobacco Control and the Protocol to Eliminate Illicit Trade in Tobacco Products.
European Union, the UK, and Turkey use this type of system to monitor the supply chain and reduce illegal trade.
In these countries, all entities involved in manufacturing, importing, storing, selling, or transporting tobacco products must register and use unique IDs.
This will reduce tax leakages and improve compliance in the tobacco and related industries.
