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