Full Text
REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-30012026-269681
EXTRAORDINARY
PART II-Section 3-Sub-section (i)
PUBLISHED BY AUTHORITY
No. 77]
NEW DELHI, FRIDAY, JANUARY 30, 2026/MAGHA 10, 1947
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 30th January, 2026
No. 02/2026 - HSNS Cess
G.S.R. 78(E).— In exercise of the powers conferred by section 35 of the Health Security se National Security
Cess Act, 2025 (35 of 2025), the Central Government hereby makes the following rules further to amend the Health
Security se National Security Cess Rules, 2026.
1. (1) These rules may be called the Health Security se National Security Cess (First Amendment) Rules, 2026.
(2) They shall come into force on the 1st day of February, 2026.
2. In the Health Security se National Security Cess Rules, 2026,-
(a) in rule 12, in sub-rule (2), the following shall be inserted, namely:—
'Explanation.- For the purposes of this rule, "maximum rated speed" of the machine shall be calculated using
the following formula, namely:-
S = (R/G)xn
Where:
S = Maximum rated speed of the machine in terms of number of pouches or tins or containers per minute
R = Revolutions per minute (RPM) rating of the main disc rotary motor of the machine that fills the pouches
or tins or containers
G = Overall gear ratio of the gear assembly between the main disc rotary motor and the rotating drum of the
machine
n = Number of funnels in a horizontal machine or number of cups in a vertical machine.';
(b) in rule 16, for Illustration 2, the following Illustration shall be substituted, namely:—
"Illustration 2: A registered person is engaged in the manufacture of specified goods using a high-speed pouch
packing machine with a packing speed of 700 pouches of 2.5 grams per minute. The monthly cess liability for
such a machine under Sl. No. 2 of Schedule II of the Act is ₹2,02,00,000. The machine is sealed on the 20th
day of July and is desealed on the 11th day of August. The total period of continuous non-operation is 22 days
(exceeding fifteen days). The application for claiming abatement may be filed by the registered person by 20th
September (the month succeeding the month in which the machines were inoperative and sealed).
The amount of abatement of cess shall be calculated as follows:—
(i) Particulars of non-operation for July:
Total number of days in the month (July) (N): 31
Number of continuous days in the month the machine was inoperative (D): 12
Amount of cess paid for the month for the machine (C): ₹ 2,02,00,000
(ii) Computation of Abatement Amount for July(A1):
A1 = (2,02,00,000 / 31) × 12 = 78,19,355
(iii) Particulars of non-operation for August:
Total number of days in the month (August) (N): 31
Number of continuous days in the month the machine was inoperative (D): 10
Amount of cess paid for the month for the machine (C): ₹ 2,02,00,000
(iv) Computation of Abatement Amount for August(A2):
A2 = (2,02,00,000 / 31) × 10 = 65,16,129
(v) Adjustment: The amount of ₹ 1,43,35,484 (A1+A2) shall be allowed as an abatement by the proper officer
in the order issued in say, October. The same shall be adjusted against the cess liability for November by the
registered person."
(c) after rule 34, the following rule shall be inserted, namely:-
"35. Utilisation of cess.- (1) The cess, including any interest or penalty, shall be credited to the Consolidated Fund of
India and be utilised for the purpose as provided in section 7 of the Act after due appropriation authorised by the
Parliament.
(2) The cess, credited to the Consolidated Fund of India under sub-rule (1), shall be transferred to a fund to be called
the Health Security se National Security Cess Fund after obtaining appropriation from the Parliament.
(3) The transfer of the cess to the said Fund shall be carried out quarterly, by the Department of Revenue, Ministry of
Finance.
(4) The activities, schemes and programmes to be financed from the said Fund shall encompass those related to public
health and national security of India.
(5) The identification of the activities, schemes and programmes and the inter-se allocations of the cess, including any
interest or penalty, for the said designated purposes shall be decided by the Budget Division, Department of Economic
Affairs in consultation with Department of Expenditure, Ministry of Finance.
(6) The transfer of the amount to the said Fund, the debit of the Fund, and the maintenance of the ledger of the Fund
shall be as per the accounting procedure formulated by the Office of the Principal Chief Controller of Accounts, Central
Board of Indirect Taxes and Customs, and as approved by the Comptroller and Accountant General of India.
(7) The accounts of the Fund maintained by the Central Government shall be subject to audit by the Comptroller and
Auditor General of India.";
(d) in FORM HSNS DEC-01,-
(i) in paragraph 4, in Table A and Table B,-
(I) in the column heading of column (7), for the word "tracks", the word "cups" shall be substituted;
(II) in the column heading of column (13), for the word "track", the word “cup" shall be substituted;
(III) in the column heading of column 13, after the word "minute", the following shall be inserted,
namely:-
“[9/8]";
(ii) in paragraph 5,-
(I) in the heading, for the word and figure "table 4", the words and figure "at serial number 4"
shall be substituted;
(II) in the Table,-
(A) in the column heading of column (2), for the words and figure "Table III or Table IV",
the words and letter "Table A or Table B" shall be substituted;
(B) in the column heading of column (4), for the word "tracks", the word "cups" shall be
substituted;
(C) in the column heading of column (10), for the word "track", the word "cup" shall be
substituted;
(D) in the column heading of column (10), after the word "minute", the following shall be
inserted, namely:-
“[7/6]";
(e) in FORM HSNS CE-01,-
(i) in paragraph 2, in the Table,-
(I) in the column heading of column (6), for the word "Tracks", the word "cups" shall be substituted;
(II) in the column heading of column (12), for the word "Track", the words "cup or funnel" shall be
substituted;
(III) in the column heading of column (12), after the word "minute", the following shall be inserted,
namely:-
“[8/7]";
(IV) in the heading of column 13, after the word "minute", the following shall be inserted, namely:-
"[6 X 12] or [9 X 12]";
(ii) in paragraph 3, in sub-paragraph 2,-
(I) for the word and figures "Column 10", the word and figures "Column 13" shall be substituted;
(II) for the word and figure "Column 8", the word and figures "Column 11" shall be substituted;
(iii) in the Instructions for the Chartered Engineer for serial number 2, the following shall be substituted,
namely:-
"2. Column 13 (Total packing capacity): This is the maximum rated speed. It should be calculated as:
(Packing Capacity of each cup or funnel) × (Number of cups or funnels). This figure determines the
Cess slab in Schedule II of the Act."
(f) in FORM HSNS RET-01, in the instructions for filing FORM HSNS RET- 01, in serial number 1, in the
example, for the figure " 5", the figure "4" shall be substituted;
(g) in FORM HSNS APL 02, in the heading, for the word and figures "section 61", the word and figures "section
30" shall be substituted.
[F. No.S-25014/2/2025-DS(ST)-DOR(Pt.5)]
VIKASH KUMAR, Dy. Secy.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide
notification No. 01/2026-HSNS Cess, dated the 1st January, 2026, vide number G.S.R. 2(E), dated the 1st
January, 2026.
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