GST officials busts illegal pan masala unit in Visakhapatnam; ₹54.60 crore evasion estimated

The Visakhapatnam Central GST Commissionerate has detected an alleged duty evasion of ₹54.60 crore by a clandestine pan masala manufacturing unit in the Pedagantyada area of Gajuwaka.,

According to a release issued by the Principal Commissioner’s office, officials searched the registered premises and uncovered active, unrecorded manufacturing operations. Three undeclared pouch-packing machines were found installed and operational at the site.

The officials said: “The capacity-based cess applicable to pan masala comes under the Health Security se National Security (HSNS) Cess Act, 2025, which came into effect on February 1, 2026. Under this framework, the HSNS CESS is computed using the production capacity, the number of packing machines installed, and the weight of the pouches.