Finance Bill 2025 Introduces “Track And Trace” Mechanism To Check GST Evasion

The Finance Bill, 2025 seeks to amend the Goods and Service Tax Act (GST) which introduces “track and trace” mechanism to check GST Evasion.

A new clause (116A) is being inserted in section 2 to provide definition of Unique Identification Marking for implementation of Track and Trace Mechanism.

Cigarettes are expected to be among the first products brought under a “track and trace mechanism” aimed at curbing tax evasion. Pan masala may also be included in the initiative.

The system shall be based on a Unique Identification Marking which shall be affixed on the said goods or the packages thereof. This will provide a legal framework for developing such a system and will help in implementation of mechanisms for tracing specified commodities throughout the supply chain.

Read More: Finance Bill 2025: Key Amendments In Income Tax Act

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Mariya Paliwala

Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

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