The Health Security Se National Security Cess Act, 2025
Administered Ministry: Ministry of Finance / Department of Revenue
Act details
| Short title | The Health Security Se National Security Cess Act, 2025 |
|---|---|
| Long title | An Act to augment the resources for meeting expenditure on national security and for public health, and to *levy a cess for the said purposes on the machines installed or other processes undertaken by which specified goods are manufactured or produced and for matters connected therewith or incidental thereto. |
| Act number | 35 of 2025 |
| Act year | 2025 |
| Enactment date | 15 Dec 2025 |
| Ministry | Ministry of Finance / Department of Revenue |
| Department | Department of Revenue |
| Jurisdiction | Central (Parliament of India) |
| Sections | 39 |
| Schedules | 2 |
| Status | Not repealed |
| Last checked on India Code | 28 Oct 2026 |
| Source | India Code, Government of India |
Summary
Summary of Health Security se National Security Cess Act, 2025
The Act establishes a comprehensive framework for the assessment, collection, administration, recovery, and enforcement of the cess while ensuring compliance through registration, returns, audits, penalties, and appeals.
Key Provisions
1. Levy and Collection of Cess
• Imposition of Cess: A cess is levied on specified goods manufactured or produced through machines or other prescribed processes.
• Specified Goods: Initially applies to pan masala and may be extended to other goods as notified by the Central Government.
2. Registration and Compliance
• Mandatory Registration: Persons manufacturing specified goods must register under the Act.
• Returns and Self-Assessment: Manufacturers are required to self-assess the cess, file periodic returns, and pay the cess within the prescribed time.
3. Assessment and Recovery
• Verification and Audit: Authorities may inspect records, conduct audits, and verify the correctness of returns and cess payments.
• Recovery of Dues: Provides for recovery of unpaid cess along with applicable interest and penalties.
4. Government Powers
• Rule-Making Authority: Empowers the Central Government to make rules regarding the levy, collection, administration, and enforcement of the cess.
• Administration: Authorises designated officers to administer the Act and ensure effective implementation.
Legislative history
Legislative History:
The Health Security Se National Security Cess Act, 2025
Source: Official Record of Parliament, India Code, and Ministry of Finance
Act Title - The Health Security Se National Security Cess Act, 2025
Act Number- Act No. 37 of 2025
Act ID (India Code) - 202537
Presidential Assent date- December 15, 2025
Enforcement Date - February 01, 2025
Nodal Ministry - Ministry of Finance
Precedent & Historical Rationale
● Dedicated Capacity-Based Special Levy: Introduces a specialized capacity-based excise cess on the manufacturing machinery installed and processes undertaken for specified sin goods (initially pan masala), decoupling taxation from simple output volumes to curb tax evasion.
● Targeted Earmarking for National Security & Public Health: Establishes a dedicated statutory mechanism where collected proceeds flow into the Consolidated Fund of India to build a reliable funding stream specifically allocated toward public health infrastructure and national security capabilities.
Parliamentary Trajectory & Enactment
● Formulation: Introduced by the Ministry of Finance to establish a transparent, rules-based capacity levy on high-yield goods to support national strategic priorities.
● Parliamentary Passage: Introduced in the Lok Sabha on December 1, 2025; passed by the Lok Sabha on December 5, 2025; and passed by the Rajya Sabha on December 8, 2025.
● Presidential Assent: Received the assent of the President of India on December 15, 2025.
● Enforcement: Enforced on February 01, 2026.