TaxTMI 
TaxTMI 
Changes in Customs, Central Excise, GST law and rates have been proposed through the Finance Bill, 2022
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....Excise 01/2022-Central Excise 1st February, 2022 Central Excise (N.T.) 01/2022-Central Excise (N.T.) 1st February, 2022 Circular (Central Excise) 1082/03/2022-cx 1st February, 2022 Circular (Customs) 3/2022-customs 1st February, 2022 2. Unless otherwise stated, all changes in rates of duty will take effect from the midnight of 1st February/2nd February, 2022. A declaration has been made under the Provisional Collection of Taxes Act, 1931 In respect of clause 97 (a) of the Finance Bill, 2022 so that changes proposed therein take effect from the midnight of 1^st February/2nd February, 2022. The remaining legislative changes would come into effect only upon the enactment of the Finance Bill, 2022 or from 1st May, 2022. 3. Major highlights of the budget - i. A comprehensive review of Customs duty exemptions has been undertaken through a process involving crowd sourcing and inputs from various ministries. In this context, about 350 exemptions are being withdrawn. ii. Further, after a detailed review of customs duty exemptions on capital goods and project imports, more than 40 exemptions relating thereto are pr....
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....ious notifications are being moved to Tariff (First) Schedule in the Customs Tariff Act. These changes in tariff rate shall come into effect from 1st May, 2022. Accordingly, the respective entries in the concerned notifications will be omitted with effect from the 1st May, 2022. The duty rates on such item shall then operate through First Schedule of Customs Tariff Act, 1975. It may however be noted that certain rate changes in the Customs Tariff are coming into effect immediately by virtue of declaration under the Provisional Collection of Taxes Act. [The details are at Annexure B] (iii) Central Excise Changes: The changes in Central Excise Act and duty rates are at Annexure C. (iv)Legislative changes in the Customs Act, Customs Tarff Act and Rules made thereunder: a) Certain significant changes are being made in the Customs Act. The definition of 'proper officer' is being modified; officers of DRI, Audit and Preventive formation are being specifically included in the class of officers of Customs; explicit provision is being made for assigning functions to officer of Customs by the Board or Pr. Commissioner/Commissioner of Customs; ....
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....egal force. We have taken every possible care in making the changes error free. However, inadvertent errors cannot be ruled out given the scale of the exercise. I shall be grateful if the provisions of the Finance Bill and notifications are studied carefully and feedback is provided urgently, including the issues that may need clarification. 5. It is requested that all possible efforts may be made to guide the taxpayers by holding interactive sessions/seminars for their benefit. In case of any doubt or difficulty, I would request you to kindly bring it to my notice immediately at js- [email protected] or to the notice of Shri Gaurav Singh, Deputy Secretary (TRU) (Tel: 011- 2309 2753, email: [email protected]), Shri J.S. Kandhari, Deputy Secretary (TRU) (Tel: 011-2309 5526, email: [email protected]), Shri Syed Wasif Haider, OSD (TRU) (Tel: 011-2309 5516, email: [email protected]) or Shri Dibyalok, Budget Officer (TRU) (Tel: 011-2309 5547, email: [email protected] We can also be reached at [email protected]. 6. Copies of Finance Bill, 2022, Finance Minister's Budget Speech, Explanatory Memorandum to the Bill and relevant notifications can be downloaded ....
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....oms dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 30%. (2) A technical change has been made in the S. No. 6 of notification No. 50/2017- Customs to remove the condition of Specific Pathogen Free (SPF) for Live Litopennaeus vannamei Shrimp. The same shall continue to be regulated through Department of Fisheries regulations [S. No. 3 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. This change is being made effective from 02.02.2022. Further, a new dedicated tariff item 0306 36 20 for Live Litopennaeus vannamei Shrimp with a standard rate of duty of 10% is being inserted with effect from 01.05.2022 [Clause 97 (b) of the Finance Bill, 2022 refers]. Accordingly, the reference to sub heading 0306 16 or 0306 17 is being modified to heading 0306. Thus, the BCD rate on this item would operate through the Tariff with effect from 01.05.2022 and consequently entry '6' shall be omitted. (3) BCD on Live Black tiger shrimp (Penaeus monodon) (heading 0306) is being decreased from 30% to 10% by inserting S. No. 6A in notification No. 50/2017 - Customs [S. No. 3 of notification No. 02/2022- Customs dated 1st February 2022 refer....
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....ntly, all other items under this exemption entry shall attract Tariff rate as per specific CTH. This change is being made effective from 02.02.2022. With effect from 01.05.2022 the BCD rate on Bovine semen would operate through the Tariff and consequently said entry '15' shall be omitted. (9) Vide S. No. 104 of notification No. 50/2017- Customs, BCD exemption is prescribed on goods specified in List 1 of said notification, falling under any Chapter, used in processing of sea-food. On review, the said List of goods to which this entry is applicable is being revised [S. No. IV(viii) of notification No. 02/2022 - Customs dated 1st February 2022 refers]. (10) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 2 to 4 of the Table 1 in Annexure B. Chapter 6-7: No change Chapter 8 (1) Vide S. No. 26 of notification No. 50/2017- Customs, concessional BCD rate of 10% is prescribed on all goods falling under tariff items 0802 21 00 and 0802....
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....rough notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 11 to 13 of the Table 1 in Annexure B. Chapter 11 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 14, 15 of the Table 1 in Annexure B. Chapter 12 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 16, 17 of the Table 1 in Annexure B. Chapter 13 (1) Vide S. No. 50 of notification No. 50/2017- Customs, concessional BCD rate of 5% is prescribed on "Seed lac" falling under sub-heading 1301 90. On review, this entry is being omitted [S. No. 15 of notification No. 02/2022 - Customs dated 1st February....
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....made effective from 02.02.2022. Chapter 16: No change Chapter 17 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 19 of the Table 1 in Annexure B. Chapter 18 (1) BCD on Cocoa beans, whole or broken, raw or roasted (tariff item 1801 00 00) is being decreased from 30% to 15% by inserting S. No. 91A in notification No. 50/2017 - Customs [S. No. 22 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry '91A' shall be omitted. Chapter 19 (1) Vide S. No. 96 of notification No. 50/2017- Customs, concessional BCD rate of 30% is prescribed on "Tapioca and substitutes therefor prepared from starch in the form of flakes, grains, pearls, siftings or in similar forms", falling under tariff item 1903 00 00. On review, this entry is being omitted [S. N....
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....022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 40%, through the Customs Tariff. Further exemption from Social Welfare Surcharge has been granted to these items [S. No. 1. (iii) of notification No. 03/2022-Customs dated 1st February 2022 refers] (3) Vide S. No. 132 of notification No. 50/2017, concessional BCD rate of 5% is prescribed on "Goods used in the manufacturing of refractory products" falling under Chapters 25, 28, 38 or 39. On review, i. Clause A of this entry is being omitted with effect from 1st April, 2023. [S. No. 33(a) of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods falling under Chapters 25, 28, 38 or 39 will now attract an applicable BCD rate, with effect from 1st April, 2023. ii. Clause B of this entry where a concessional BCD rate of 5% is prescribed on "Phenolic Resin" is being omitted with effect from 2nd February, 2022. Consequently, these goods will now attract a BCD rate of 7.5%. [S. No. 33(b) of notification No. 02/2022-Customs dated 1st February 2022 refers] (4) Vide S. No. 175 of notification No. 50/2017, concessional BCD rate of Ni....
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..... 40 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract applicable BCD rate. 5) Vide S. No. 161 of notification No. 50/2017, concessional BCD rate of Nil is prescribed on "Electrical energy originating from Nepal and Bhutan", falling under Tariff item 2716 00 00. On review, this entry is being omitted [S. No. 40 of notification No.2/2022 dated 1st February 2022 refers]. Exemption is available to the all goods (except alcoholic beverages, tobacco and manufactured tobacco products) imported from specified SAFTA member countries vide notification No. 99/2011- Customs dated 9th November, 2011. Therefore, Electrical energy imported from Nepal and Bhutan would be eligible for exemption from BCD under this notification. Exemption to electricity from Bhutan is also available under notification No. 40/2017-Customs dated 30th June, 2017. Therefore, this is a technical change and there will be no change in the effective rate of BCD. 6) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly ....
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...., commonly known as Bio-diesel", falling under Chapters 29, or 38. On review, this entry is being omitted [S. No. 55 of notification No. 02/2022-Customs dated 1st February 2022 refers]. These goods fall under Tariff item 3826 00 00 and already attract a BCD rate of 10%. This is a technical change. 3) BCD on "Methyl Alcohol" falling under tariff item 2905 11 00 is being decreased from 5% to 2.5% by amending S. No. 200 of notification No. 50/2017-Customs [S. No. 57 of notification No. 02/2022 dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry '200' shall be omitted. 4) BCD on "Acetic acid" falling under tariff item 2915 21 00 is being decreased from 7.5% to 5% by inserting S. No. 204A in the notification No. 50/2017-Customs [S. No. 59 of notification No. 02/2022 dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would ope....
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....IGCR Rules 2017. [S. No. 42 of notification No. 02/2022 dated 1st February 2022 refers]. 4) Vide S. No. 167 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on "Lifesaving drugs, medicines, diagnostic kits or equipment and Bulk drugs used in the manufacture of lifesaving drugs or medicines" falling under Chapters 28, 29, 30 or 38. On review, this entry is being rationalized and accordingly i. Entry at S. No. 167 (C) which provides exemptions to other life-saving drugs or medicines subject to the condition No. 16 has been omitted. This exemption is already available vide entry at S. No. 607 of notification No. 50/2017-Customs. ii. 39 items have been removed from the List-4. [IV(x) of Notification No. 02/2022- Customs dated 02.02.2022 refers] iii. For 2 medicines namely Poliomyelitis Vaccine (inactivated and live) and of Monocomponent Insulin, the formulations are being omitted from List-4. Further, bulk drugs for manufacture of these formulations have been granted exemptions till 31.03.2024. W.e.f. 01.04.2024 these bulk drugs would attract 5% rate under newly created entry at S. No. 166A of 50/2017-Customs [S. No. 43....
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.... 7.5%. (4) Vide S. No. 236 of notification No. 50/2017, concessional BCD rate of 5% is prescribed on 'All goods' falling under Tariff Item 3207 40 00. On review, this entry is being omitted [S. No. 65 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 7.5%. (5) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 67, 68 of the Table 1 in Annexure B. Chapter 33 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 65 of the Table 1 in Annexure B. Chapter 34 1) Vide S. No. 241 of notification No. 50/2017, concessional BCD rate of 7.5% is prescribed on 'Vinyl Polyethylene Glycol for use in manufacture of Poly Carboxylate ....
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.... Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 72, 73 of the Table 1 in Annexure B. Chapter 40 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 74 of the Table 1 in Annexure B. Chapter 41 (1) Export duty is being reduced from 40% to 30% on 'Raw hides and skins of buffalo' falling under sub-heading 4101 by inserting S. No. 38B in Notification No. 27/2011-Customs dated 1st March, 2011 with effect from 2nd February, 2022. [S. No. 2 of notification No. 10/2022-Customs dated 1st February, 2022 refers] Chapter 42 - 43: No change Chapter 44 (1) Vide S. No. 289 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on Wood in chips or particles, used in manufacture of paper, paperboard and newsprint (falling under tariff items 4401 21 00 and 4401 22 00). On review, this entry is being omitted with effect from 31st March, 2023 [S. No. 76 of....
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....cation will remain in effect till 30th April, 2021 (S. Nos. (i) to (liii) of notification No. 7/2022-Customs, dated 1st February, 2022 refers), post which the Tariff rate shall be the applicable BCD on these items. (4) Since there are certain changes in the effective rates for specified varieties of woven fabrics of Chapters 52, 54, 55 and 58, it is advisable to closely examine notification No. 82/2017-Customs dated 27th October, 2017 to identify the items on which effective rates have been equalized for upholstery and other than upholstery fabrics of Chapters 52, 54, 55 and 58. (5) While applicable rate of textile items shall comprehensively operate through Tariff w.e.f. 01.05.2022. For the period for 02.02.2022 to 30.04.2022, the rate on most of textile item shall operate through notification No. 82/2017-Customs. Accordingly, the Notification No. 82/2017-Customs is being amended to incorporate effective BCD on textile items including those on which presently the rates are prescribed vide notification No. 48/2006-Customs dated 26th May, 2006 (S. No. (i) of notification No. 7/2022-Customs, dated 1st February, 2022 refers). Notification No. 48/2006-Customs dated 26th May, 2006....
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.... of notification No. 50/2017-Customs, concessional BCD rate of 7.5% is prescribed on 'Mica glass tape for use in manufacture of insulated wires and cables falling under heading 8544' (falling under tariff item 6814 90 90). On review, this entry is being omitted [S. No. 73 of notification No. 2/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 10%. (2) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 86 of the Table 1in Annexure B. Chapter 69 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 86 of the Table 1 in Annexure B. Chapter 70 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed....
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.... The following notifications imposing anti-dumping duty or countervailing duty on certain products of steel are being permanently revoked with effect from 1st February, 2022: S.N. Notification No. Product Exporting Country 1 54/2018- Customs (ADD) dated 18.10.2018 Straight length Bars and Rod of alloy Steel China PR 2 38/2019-Customs (ADD) dated 25.09.2019 High Speed Steel of Non- Cobalt Grade China PR, Brazil, Germany 3 16/2020 - Customs (ADD) dated 23.06.2020 Flat rolled products of steel, (Al or Zinc coated) China PR, Vietnam, and Korea RP 4 1/2017-Customs (CVD) dated 07.09.2017 Hot rolled and cold rolled stainless steel flat products China PR [Notification Nos. 5/2022-Customs (ADD), 6/2022-Customs (ADD), 7/2022-Customs (ADD), and 1/2022- Customs (CVD), all dated 1st February, 2022 refers] (3) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 91 to 93 of the Table 1 in A....
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.... please refer to Sr. No. 98, 99 of the Table 1 in Annexure B. Chapter 82 to 83: No Change Chapter 84 (1) Vide S. No. 393 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on specific sports machinery falling under Chapter 84. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 97 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (2) Vide S. No. 394 of notification No. 50/2017-Customs, NIL BCD rate is prescribed on 'bacteria removing clarifier' falling under Chapter 84. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 97, of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (3) Vide S. No. 395 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on 'marine seawater pumps with fibre Impellers' and 'automatic fish/prawn feeder' falling under Chapter 84 or any other chapter. On review, this entry would be omitted with effect from 1st....
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....effect from 1st April, 2023. (8) Vide S. No. 403 of notification No. 50/2017-Customs, NIL BCD rate is prescribed on parts and raw materials for manufacture of goods required for off- shore oil exploration, falling under Chapter 84 or any other chapter. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 101 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (9) Vide S. No. 404 of notification No. 50/2017, concessional BCD rate of Nil is prescribed on "goods imported in connection with petroleum operations", falling under chapters 84 or any other chapter. The said concessional BCD rate will continue to apply. However, the goods in associated List-33 have been pruned and have been made more specific by prescribing the concerned HS Codes. Also, the associated condition No. 48 for availing such exemption and disposal of such goods have been simplified by defining a licensee, lessee, contractor or sub-contractor and removing the requirement of producing a certificate from Directorate General of Hydrocarbons (DGH) for import or each transac....
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.... of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on goods required for setting up crude petroleum refinery, falling under Chapter 84 or any other chapter. On review, a few entries of this exemption are being omitted with effect from 1st April, 2022 [S. No. IV (xiv) of notification No. 2/2022- Customs, dated 1st February 2022 refers]. The remaining entries of this exemption would be omitted with effect from 1st April, 2023 [S. No. 104 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2022/ 2023. (15) Vide S. No. 410 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on kits required for the conversion of petrol/ diesel driven vehicles into CNG driven vehicles, falling under Chapter 84 or any other chapter. On review, this entry is being omitted with effect from 1st April, 2022 [S. No. 105 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2022. (16) Vide S. No. 413 of notification No. 50/2017-Customs, c....
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....ently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (21) Vide S. No. 436 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on spares for outboard motors, falling under Chapter 84 or 85. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 112 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (22) Vide S. No. 439 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on machinery used in the leather or footwear industry, falling under Chapter 84, 85 or 90. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 113 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (23) Vide S. No. 440 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on fogging machines, falling under Chapter 84. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 113 of notification ....
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....ompressors and crankshafts used in manufacture of refrigerator compressors, falling under tariff item 8414 90 11. On review, this entry is being omitted with effect from 2nd February, 2022. [S. No. 119 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 7.5%. (30) BCD on 'coffee roasting, brewing or vending machineries for use in the manufacturing or processing of coffee' (tariff heading 8419) is being decreased from 10% to 5% by inserting S. No. 451B in notification No. 50/2017-Customs [S. No. 121 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. (31) Vide S. No. 455 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on machinery for filling, closing, sealing or labelling bottles or cans, falling under tariff items 84223000, 84224000 or 84229090. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 123 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. ....
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....BCD rate, with effect from 1st April, 2023. (37) Vide S. No. 470 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on machinery for making wooden fiberboards, falling under tariff item 8479 30 00. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 127 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (38) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 100 to 102 of the Table 1 in Annexure B. Chapter 85 (1) BCD rate on camera lens for use in manufacture of camera module of cellular mobile phone (tariff item 3920 99 99/ 9002 11 00) is being decreased from 15%/ 10% to 2.5% by amending S. No. 6B of notification No. 57/2017. [S. No. 4(ii) of notification No. 15/2022-Customs dated 1st February 2022 refers]. This change is being made effective from 2nd February, 202....
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....arly, parts of wrist wearable devices falling under tariff item 8517 79 90 are being excluded from the BCD exemption contained in S. No. 5 of notification No. 57/2007- Customs as the BCD rates on such parts will now be governed by notification No. 11/2022-Customs dated 1st February 2022 [S. No. 4(i) of notification No. 15/2022- Customs dated 1st February 2022 refers]. (4) The tariff rate on all goods falling under tariff item 8518 21 00, 8518 22 00, 8518 29 00 and 8518 30 00 is being increased from 15% to 20%. [Clause 97(a) of the Finance Bill 2022 refers]. By virtue of the declaration made under Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. However, vide S. No. 9 of notification No. 12/2022-Customs, concessional BCD rate of 15% will continue on these goods till 31st March, 2022. [Notification No. 12/2022-Customs dated 1st February 2022 refers]. Further, with effect from 1st April 2022, the BCD rates on hearable devices and inputs/ parts/ subparts thereof, will be governed as per the phased manufacturing program (PMP) as mentioned in the Table below. The BCD rate on all goods falling under subheadings 8518 21, 8518 22, 85....
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....(5) BCD rate on Aluminium/ Copper based Copper Clad Laminates for use in manufacture of PCBs/ MCPCBs is being decreased to 'Nil' by amending S. No. 122 of notification No. 25/1999-Customs [S. No. 59 of notification No. 14/2022-Customs dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. (6) The tariff rate on photo voltaic cells, not assembled in modules or made up into panels (tariff item 8541 42 00) is being increased from 20% to 25% [Clause 97(a) of the Finance Bill 2022 refers]. By virtue of the declaration made under Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. However, the BCD rate on these goods would remain at 'Nil' up to 31st March, 2022, vide S. No. 23 of notification No. 24/2005-Customs. The BCD on these goods will increase to 25% with effect from 1st April, 2022. However, goods under this tariff item that are used solely and exclusively with specified goods covered by notification No. 24/2005-Cusoms and 25/2005-Customs will continue to attract 'Nil' BCD vide the newly inserted S. No. 38A of 24/2005-Customs and 32A of notification No. 25/2005-Customs [S. Nos. 2(iii) and....
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.... [S. No. 106 of notification No. 02/2022-Customs dated 1st February 2022 refers]. On review, this entry is being omitted with effect from 2nd February, 2022. Consequently, these goods will now attract applicable BCD rate as per their classification. (12) Vide S. No. 425 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on specified goods required for public mobile radio trunked service (PMRTS) and their parts falling under any chapter. [S. No. 106 of notification No. 02/2022-Customs dated 1st February 2022 refers]. On review, this entry is being omitted with effect from 2nd February, 2022. Consequently, these goods will now attract applicable BCD rate as per their classification. (13) Vide S. No. 430 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on specified goods for use in pharmaceutical and bio-technology sector imported for research and development use falling under chapter 84, 85 or 90. [S. No. 107 of notification No. 02/2022-Customs dated 1st February 2022 refers]. On review, this entry would be omitted with effect from 1st April, 2023. Consequently, these goods will attract applicable BCD rate as per their....
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....ture of populated printed circuit board of such omitted goods will continue to attract Nil BCD vide S. No. 39 of notification No. 24/2005-Customs [S. No. 137(a) of notification No. 02/2022-Customs dated 1st February 2022 refers]. Further, this entry is being omitted from 1st April, 2024. [S. No. 137 (b) of notification No. 02/2022-Customs dated 1st February 2022 refers]. (19) Notification No. 25/1999-Customs provides exemption in customs duty on goods imported for the manufacture of specified electronic goods. The exemption notification has been reviewed comprehensively and suitable amendments are being made to the said notification. Further, a sunset date of 31.03.2024 has been prescribed for the remaining exemptions under this notification [Notification No. 14/2022- Customs dated 1st February refers]. (23) Notification No. 25/2002-Customs provides exemption in customs duty to capital goods imported for manufacture of specified electronic goods. The exemption notification has been reviewed and a sunset date of 31.03.2024 has been prescribed for the exemptions provided under this notification. [S. No. 1 of notification No. 15/2022- Customs dated 1st February 2022 refers]. ....
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.... on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 109, 110 of the Table 1 in Annexure B. Chapter 89 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 111, 112, 113 of the Table 1 in Annexure B. Chapter 90 (1) Health Cess on needles for suture (tariff item 9018 32 10) used in manufacture of surgical sutures (tariff item 3006 10 10) is being decreased from 5% to 'Nil' by inserting S. No. 1A in notification No. 08/2020-Customs. [S. No. 5 of notification No. 15/2022-Customs dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. (2) Vide S. No. 216 and 481 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on artificial kidney and disposable sterili....
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....To 2022-23 2023-24 2024-25 2025-26 Following parts [S. No. 1 to 6] for manufacture of smart meters falling under tariff item 9028 30 10 of the Customs Tariff 1. 9028 90 10 Assembled / Populated PCB for Smart Meters 7.5% 20% 20% 20% 20% 2. 8517 69 90 Communication Module 10% NIL NIL 5% 10% 3. 8536 49 00 Relay 10% 5% 10% 10% 15% 4. 8517 71 00 Antenna NIL NIL NIL 5% 10% 5. 8524 11 00/ 8524 91 00 LCD & Backlight for LCD 15% NIL 5% 10% 10% 6. 8506 50 00 Battery 10% NIL 5% 10% 10% 7. Any Chapter Parts, sub-parts, and raw materials for use in the manufacture of the S. Nos 1 to 6 above As per CTH NIL NIL NIL NIL 8. 9028 30 10 Smart Meters 15% 25% 25% 25% 25% Note: IGCR conditions shall apply for the items in S. No. 1 to 7 above. [Notification No. 13/2022-Customs dated 1st February, 2022 refers] Similarly, the tariff rate on parts and accessories for electricity meters (tariff item 9028 90 10) is being increased from 10% to 20% [....
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.... on 'requisites for games and sports', falling under 95 Chapter. On review, this entry is being omitted [S. No. 151 of notification No. 2/2022-Cus dated 1st February 2022 refers]. Consequently, these goods will now attract applicable BCD rate. (5) Vide S. No. 594 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on snow-skis, water-skis, surf boards etc. On review, this entry would be omitted with effect from 1st April, 2023. Consequently, these goods will attract applicable BCD rate as per their classification from 1st April, 2023. [S. No. 153 of notification No. 02/2022-Customs dated 1st February 2022 refers]. (6) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly, relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 118 of the Table 1 in Annexure B. Chapter 96 - 97: No change Chapter 98 (1) Concessional BCD rates extended to project imports are being phased out gradually in the following manner: S.No. Description Entry No. in Notn 50/201....
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....ditional exemptions for import of specified items like decorative papers, motifs, back of photo frames, etc. to be used in manufacture of handicraft products meant for exports. iii. S. No. 257B is being inserted to provide for conditional exemptions for import of specified items like fasteners, inlay cards, lining and inter-lining materials, wet blue chrome tanned leather, etc. to be used in manufacture of textile or leather garments meant for exports. iv. S. No. 257C is being inserted to provide for conditional exemptions for import of specified items like buckles, buttons, locks etc. to be used in manufacture of leather or synthetic footwears, or other leather products meant for exports. v. S. No. 288, having been subsumed under new S. No. 257B, is being omitted. [S. Nos 69, 70 and 75 of 2/2022-Customs dated 01.02.2022 refers] 2. Indicating end dates for conditional exemptions in notifications as per Section 25(4A) of Customs Act- Section 25 (4A) of the Customs Act, inserted vide Finance Act, 2021, prescribes that where any exemption is granted subject to any condition under sub-section (1), such exemption shall, unless otherwise specified or v....
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....import of transformer oil equivalent to such portion of the excise duty leviable on the raw material commonly known as transformer oil base stock or transformer oil feedstock . 2. 191/1978- Customs dated 22.09.1978 3. 10 /1995-Customs dated 7.3.1995 This notification prescribes concessional rate of customs duty on import inputs imported for manufacturing of Iron & Steel intermediates. 4. 26 /1999- Customs dated 28.2.1999 This notification prescribes concessional rate of basic customs duty on import of kerosene imported by a manufacturer of linear alkyl benzene for extracting N-Paraffin. 5. 27 /2004- Customs dated 23.01.2004 This notification prescribes concessional rate of customs duty on import of specified goods imported for use in manufacture of certain chemicals. 6. 14 /2006- Customs dated 01.03.2006 This notification prescribes concessional rate of customs duty on import of specified varieties of woven fabrics falling under Chapters 52, 54, 55 and 58. The entries of this notification have been merged in notification No. 82/2017-Customs. 7. 48 /2006-Customs dated 26.05.2006 This notification prescribes concessional ....
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....28.10.2020 This notification prescribes concessional rate of customs duty on import of Potatoes under Tariff Rate Quota (TRQ) and had lapsed on 31st January, 2021. [Notification Nos 4/2022-Customs and 5/2022-Customs both dated 01.02.2022 refers] In addition, following expired/ redundant entries of exemption notifications are also being omitted. S.No. Notification No. Notification Subject Expired/ redundant Serial Nos. being omitted 1. 27 /2011-Customs dated 01.03.2011 This notification prescribes concessional rate of customs duty on export of goods. 20B, 63, 64 2. 39 /96-Customs, dated the 23.07.1996 This notification prescribes concessional rate of customs duty on items relating to Defence and internal security forces. 14, 15, 17, 18, 19, 24, 29, 30, 31, 31A, 31B, 32, 33, 35, 36, 38, 39, 40, 41, 42, 43 3. 37 /2017-Customs dated 28.10.2020 This notification prescribes concessional rate of customs duty on import of items relating to internal security agencies. 6, 7 [Notification No. 6/2022-Customs, 7/2022-Customs and 10/2022-Customs all dated 01.02.2022 refers] 4. Clarifications regarding Social Welfare Surcharge: Circul....
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....goods 50% 13 13. 41 100590 All goods 50% 13 14. 42 1104 22 00 De-hulled oat grain 15% 13 15. 43 1107 10 00, 1108 12 00 All goods 30% 13 16. 45 1207 91 00 All goods 20% 13 17. 48 1209 91 or 1209 99 All goods 5% 14 18. 55 1401 10 00 Bamboo 25% 18 19. 91 1702 11 or 1702 19 All goods 25% 21 20. 97 1905 31 00 or 1905 32 All goods 30% 24 21. 106 2207 20 00 All goods 5% 26 22. 117 2309 10 00 All goods 20% 26 23. 119A Chapter 23 (except 23091000) All goods 15% 27 24. 120 2 5 (except 2515, 2516, 2523, 2524) All goods 5% 27 25. 121 2503 00 10 Crude or unrefined sulphur 2.5% 27 26. 123 2510 Rock phosphate 2.5% 29 27. 127 2520 10 10, 2520 10 20, 2520 10 90 Gypsum 2.5% 31 28. 129 2523 29 All goods Nil 32 29. 130 2528 All goods 2.5% 32 30. 134 2601 to 2617 All goods 2.5% 34 31. 135 2604 00 00 Nickel Ore and Concentrate Nil 34 32. ....
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....2917 37 00 Dimethyl terephthalate (DMT) 5% 60 63. 208 2926 10 00 Acrylonitrile 2.5% 60 64. 210 293371 00 Caprolactam 5% 60 65. 211 2905 43 00, 2905 44 00, 3301, 3501, 3502, 3503, 3504, 3505, 3809 10 00 All goods 20% 60 66. 219 31 (except 31022100, 31023000, 31025000, 31043000, 31052000, 31053000, 31054000, 31055100, 31055900, 31056000, 31059010, 31059090) All goods 7.5% 62 67. 231 3201, 3202, 3203, 3204, 3205 00 00, 3206 (except 3206 11, 3201 20 00 and 3206 19 00) or 3207 All Goods 7.5% 64 68. 232 3201 20 00 Wattle extract 2.5% 64 69. 240 3403 All Goods 7.5% 66 70. 250 3801, 3802, 3803 00 00, 3804, 3805, 3806, 3807, 3809 (except 3809 10 00), 3810, 3812, 3815, 3816 00 00, 3817, 3821 00 00, 3824 (except 3824 60 and 3824 99 00) or 3827 All goods other than those at S. No. 250A 7.5% 68 71. 251 3823 11 00, 3823 12 00, 3823 13 00, 3823 19 00 or 3823 70 All goods 7.5% 68 72. 262 3901 to 3915 (except 3904 and 3908) All goods 7.5% 71 73. 268 3906 90 70 Sodium polyacrylate 5% 72 74. 281 4001....
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....10 All goods Note: This is a partial change to the original entry; 7.5% 133 109. 541 8802 11 00 and 8802 12 00 Helicopters 2.5% 141 110. 547 8807 10 00, 8807 20 00, 8807 30 00 All goods 2.5% 142 111. 552 8902 00 10 Trawlers and other fishing vessels Nil 143 112. 554 8905 10 00 All goods Nil 144 113. 556 8907 10 00 All goods Nil 145 114. 557 8908 00 00 All goods 2.5% 145 115. 563 9018 32 30, 9018 50 20, 9018 90 21, 9018 90 24, 9018 90 43, 9018 90 95, 9018 90 96, 9018 90 97, 9018 90 98 Goods required for medical, surgical, dental or veterinary use 5% 146 116. 563A 9018 (other than items in entry at Sr. No. 563 and 9018 90 99), 9019 (other than 9019 10 20), 9020, 9021 All goods 7.5% 147 117. 584 9108, 9110 or 9114 30 10 Watch dials and watch movements 5% 150 118. 594A 9506 91 All goods 1 0% 154 II. The following entries of notification No. 52/2017-Customs are being moved to the first schedule of Customs Tariff with effect from 1st....
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.... E12 and E15 fuel blends, conforming to the new BIS specification [IS 17586] that has been issued for Ethanol Blended Petrol with percentage of ethanol up to twelve (E12) and fifteen (E15) percent respectively. This will align the Fourth Schedule to the Central Excise Act, 1944, with the similar proposed amendment in the sub-heading 2710 12 in the First Schedule to the Customs Tariff Act, 1975. [Clause 98 of Finance Bill, 2022 refers] (4) In order to promote blending of Motor Spirit (commonly known as Petrol) with ethanol/methanol and blending of High Speed Diesel with bio-diesel, an additional Basic Excise Duty of Rs. 2 per litre on Petrol and Diesel, intended to be sold to retail consumers without blending, as confirming to (Bureau of Indian Standards) BIS classification, would be levied with effect from the 1st day of October, 2022. [Notification No. 01/2022-Central Excise dated 1st February, 2022 refers] (5) The Seventh Schedule of the Finance Act, 2001, is being amended by substituting Central Excise tariff item 2709 20 00 with 2709 00 10 for Petroleum Crude. [Clause 125 of Finance Bill, 2022 refers] ANNEXURE D Amendments in Customs Act, 1962: (1) Clause (34) of....
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.... Section 14 is being amended to include provisions for rules enabling the Board to specify the additional obligations of the importer in respect of a class of imported goods whose value is not being declared correctly, the criteria of selection of such goods, and the checks in respect of such goods. This amendment is a measure to address the issue of undervaluation in imports. [Clause 88 of Finance Bill, 2022 refers] (7) Section 28E is being amended to omit the Explanation under clause (c) and omit clause (h). [Clause 89 of Finance Bill, 2022 refers] (8) Section 28H is being amended to make provisions for prescribing appropriate fees by Board relating to application for advance Ruling and also give flexibility to the applicant to withdraw his application at any time before a ruling is pronounced from the current 30 days' time period. Consequently, the sub-section (3) is being omitted. [Clause 90 of Finance Bill, 2022 refers] (9) Sub-section (7) under section 28I is being substituted so as to remove the word "Members" and also make changes accordingly. [Clause 91 of Finance Bill, 2022 refers] (10) Sub-section (2) under Section 28J is being substituted so that advance rul....
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.... • to identify new categories of Fuels being introduced in the Country; • to give a fillip to identification and exports of Handicrafts; • to clarify the manner of determination of Fe content in iron ore being exported; Amendment to Customs Import of Goods at Concessional Rate of duty (IGCR) Rules, 2017 Customs (Import of goods at concessional rate of duty) Rules, 2017 are being amended to provide the following facilities: (1) To introduce end to end automation in the entire process. Requirement of submitting all the necessary details electronically, through a common portal, is being brought out in the Rules itself. (2) Standardizing and notifying the various forms in which details are to be submitted electronically. (3) Leveraging the advantage of such submissions electronically, the need for any transaction based permissions and intimations are all being done away with. (4) Consequently, the procedure to claim the notification benefit is being simplified and automated. (5) For effective monitoring of the use of goods for the intended purposes, a Monthly Statement is being proposed which is to be s....
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....wo-way communication process in return filing; c. provide for an extended time upto thirtieth day of November of the following financial year for rectification of errors in respect of details of outward supplies furnished under sub-section (1); d. provide for tax period-wise sequential filing of details of outward supplies under sub-section (1). [Clause 102 of Finance Bill, 2022 refers] (5) Section 38 of the CGST Act is being substituted for prescribing the manner as well as conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement and to do away with two-way communication process in return filing. [Clause 103 of Finance Bill, 2022 refers] (6) Section 39 of the CGST Act is being amended so as to: a. provide that the non-resident taxable person shall furnish the return for a month by thirteenth day of the following month; b. provide an option to the persons furnishing return under proviso to sub-section (1), to pay either the self-assessed tax or an amount that may be prescribed; c. provide for an extended time upto thirtieth day....
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....tion of errors in the statement furnished under sub-section (4). [Clause 111 of Finance Bill, 2022 refers] (14) Section 54 of the CGST Act is being amended so as to: a. explicitly provide that refund claim of any balance in the electronic cash ledger shall be made in such form and manner as may be prescribed; b. provide the time limit for claiming refund of tax paid on inward supplies of goods or services or both under section 55 as two years from the last day of the quarter in which the said supply was received; c. extend the scope of withholding of or recovery from refunds in respect of all types of refund; d. provide clarity regarding the relevant date for filing refund claim in respect of supplies made to a Special Economic Zone developer or a Special Economic Zone unit by way of insertion of a new sub-clause (ba) in clause (2) of Explanation thereto. [Clause 112 of Finance Bill, 2022 refers] (15) Consequent to the amendment in section 38 of the CGST Act, sub-section (2) of section 168 of the CGST Act is being amended so as to remove reference to section 38 therefrom. [Clause 113 of Finance Bill, 2022 refers] II. RETROSPECTI....