Government has made the following changes in indirect tax rates, effective from today, that is 19th October, 2015:

1) In view of the continued fall in international prices of wheat and the anticipated adverse impact of increased imports during the first half of this financial year, basic customs duty on wheat has been increased from 10% to 25% for a period upto 31.03.2016. Notification No.51/2015-Customs, dated 19.10.2015 may be referred to in this regard.

2) Specified biodiesel is exempt from central excise duty. However, its inputs namely, RBD Palm Stearin, Methanol and Sodium Methoxide are chargeable to central excise duty leading to CENVAT credit accumulation. Central excise duty has been exempted on RBD Palm Stearin, Methanol and Sodium Methoxide used in the manufacture of such biodiesel subject to actual user condition for a period upto 31.03.2016. Notification No.42/2015-Central Excise, dated 19.10.2015 may be referred to in this regard.

Customs duty increase on wheat and excise exemptions for biodiesel inputs change import and manufacturing tax treatment. Basic customs duty on imported wheat is increased to 25% until 31.03.2016 by Notification No.51/2015-Customs to counter import pressure. Central excise duty is exempted on RBD Palm Stearin, Methanol and Sodium Methoxide when used by actual users in manufacture of specified biodiesel, preventing CENVAT credit accumulation, under Notification No.42/2015-Central Excise until 31.03.2016.