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Changes in Customs, Central Excise, GST law and rates have been proposed through the Finance Bill, 2023
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....posed in the CGST Act and IGST Act through clauses 128 to 144 of the Bill. The details are briefly brought out below. 2. Changes in customs and central excise duty rates are also being carried through the following Notifications which are effective from 2nd February, 2023 unless specified otherwise: Notification Nos. Date Customs (Tariff) 02/2023-Customs to 12/2023-Customs 1st February, 2023 Central Excise (Tariff) 05/2023-Central Excise 1st February, 2023 3. The proposed changes in customs, central excise/ NCCD rates, and other changes proposed in the Finance Bill, 2023 are briefly summarized below: A. CUSTOMS I. Basic customs duty rate structure: a) As part of rationalization of customs duty rate structure, the number of basic customs duty rates on goods, other than textiles and agriculture, is being reduced. As a result, there are changes in the rates of BCD as well as in the rates of AIDC and/ or SWS. b) The BCD is being increased on styrene, vinyl chloride monomer, toys and parts of toys (other than parts of electronic toys), bicycles, automobiles in SKD and CBU form, Silver bar, Silver dore and naphtha. c) The BCD and the AIDC /SWS rates are being re- cali....
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....ic feed is being reduced subject to IGCR condition as follows: Description of goods From To Fish meal 15% 5% Krill meal 15% 5% Fish lipid oil 30% 15% Algal Prime (flour) 30% 15% Mineral and Vitamin Premixes 15% 5% 4. Electronics goods a) The BCD on camera lens for camera module and input/sub parts for lens of camera module of mobile phone is being reduced from 2.5% to Nil subject to IGCR condition. b) Exemption from BCD is being provided to specified chemicals/items for manufacture of Pre-calcined Ferrite Powder as is available for Ferrites (S. No 17 of Notification no 25/1999 -Customs). c) Exemption from BCD is being provided to Palladium Tetra Amine Sulphate for manufacture of parts of connectors as is available for manufacture of connectors. (S.No 225 of Notification no 25/1999 -Customs). d) The BCD on parts for manufacture of open cells of TV panels is being reduced from 5% to 2.5% subject to IGCR condition. 5. Electrical appliances e) The BCD on electric kitchen chimney is being increased from 7.5% to 15% . f) The BCD on heat coils for use in manufacture of electric kitchen chimney is being reduced from 20% to 15% subject to IGCR condition.....
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....ette of India vide number G.S.R. 785(E), dated the 30th June, 2017. 3. All goods falling under HSN 7113, other than the goods covered under S. Nos. 356, 357 and 364C of the Table in the notification No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India vide number G.S.R. 785(E), dated the 30th June, 2017. 4. All goods falling under HSN 7114, other than the goods covered under S. Nos. 356 and 357 of the Table in the notification No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India vide number G.S.R. 785(E), dated the 30th June, 2017. 5. Bicycles (HSN 8712 00 10) 6. Motor vehicle including electrically operated vehicles falling under HSN 8703 covered under S. No. 526 (1)(b), 526 (2)(b), 526A(1)(b) and 526A(2)(b) of the Table in Notification No. 50/2017-Customs dated the 30th June, 2017, published in the Gazette of India vide no G.S.R. 785(E) dated the 30th June, 2017. 7. Aeroplane and other aircrafts falling under tariff items 8802 2000, 8802 3000 and 8802 4000 covered under S. No. 543 A of the Table in Notification No. 50/2017Customs dated the 30th June, 2017, published in the Gazette of India vide no G.S.R. 78....
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....ears upto 31.3.2028 1. S. No 609 of 50/2017Customs Used bonafide personal and household effects of a deceased person 2. 33/2017- Customs Exemption to import/reimport of challenge cups and trophies won by a unit of Defence Force or its members. 3. 41/2017- Customs Exemption to import of cups, trophies to be awarded to winning teams in international tournament /world cup to be held in India. 4. 146/94- Customs Exemption to import of specified sports goods imported by National Sports Federation or by a Sports person of outstanding eminence for training. 5. 90/2009- Customs Exemption to imports from Antarctica of goods used for or related to Indian Antarctic Expedition or Indian Polar Science Programme. Extended by two years upto 31.3.2025 1. 168 Specific inputs and sub-parts for use in manufacture of telecommunication grade optical fibre or optical fibre cables Nil Nil 2. 341 Preform of silica for use in the manufacture of telecommunication grade optical fibres or optical fibre cables 5% 5% 3. 341A Inputs for manufacture of Preform of silica Nil Nil 4. 405, 406 Raw materials and parts for manufacture of Wind operated electricity generators, includin....
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.... 20 90 Other cigarettes 735 850 2402 90 10 Cigarettes of tobacco substitutes 600 690 2. Central excise duty exemption is being provided on blended Compressed Natural Gas (CNG) from so much of the amount as is equal to the GST paid on Bio Gas /Compressed Bio Gas contained in such blended CNG. C. LEGISLATIVE AMENDMENTS I. Amendments in Customs Act, 1962 (i) Section 25 of the Customs Act is being amended to insert a Proviso to subsection (4A) to provide that the validity of two years shall not apply to exemption notifications issued in relation to multilateral or bilateral trade agreements; obligations under international agreements, treaties, conventions; UN agencies, diplomats, international organizations; privileges of constitutional authorities; schemes under Foreign Trade Policy or other Central Government schemes having a validity of more than two years; re-imports, temporary imports, goods imported as gifts or personal baggage; any duty of customs imposed under any law in force including integrated tax leviable under sub-section 7 of Section 3 of the Customs Tariff Act, 1975, other than under Section 12 of the Customs Act; (ii) Section 127 C of the Customs Act is....
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....ended so as to remove the restriction imposed on registered persons engaged in supplying goods through electronic commerce operators from opting to pay tax under the Composition Levy. b) Second and third provisos to sub-section (2) of section 16 of the CGST Act are being amended to align the said sub-section with the return filing system provided in the said Act. c) Explanation to sub-section (3) of section 17 of the CGST Act is being amended so as to restrict availment of input tax credit in respect of certain transactions specified in para 8(a) of Schedule III of the said Act, as may be prescribed, by including the value of such transactions in the value of exempt supply. Further, sub-section (5) of said section is also being amended so as to provide that input tax credit shall not be available in respect of goods or services or both received by a taxable person, which are used or intended to be used for activities relating to his obligations under corporate social responsibility referred to in section 135 of the Companies Act, 2013. d) Sub-section (1) and sub-section (2) of section 23 of the CGST Act are being amended, with retrospective effect from 01st July, 2017, so as ....
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....ed so as to provide for penal provisions applicable to Electronic Commerce Operators in case of contravention of provisions relating to supplies of goods made through them by unregistered persons or composition taxpayers. l) Sub-section (1) of section 132 of the CGST Act is being amended so as to decriminalize offences specified in clause (g), (j) and (k) of the said sub-section and to increase the monetary threshold for launching prosecution for the offences under the said Act from one hundred lakh rupees to two hundred lakh rupees, except for the offences related to issuance of invoices without supply of goods or services or both. m) First proviso to sub-section (1) of section 138 of the CGST Act is being amended so as to simplify the language of clause (a), to omit clause (b) and to substitute the clause (c) of said proviso so as to exclude the persons involved in offences relating to issuance of invoices without supply of goods or services or both from the option of compounding of the offences under the said Act. It further seeks to amend sub-section (2) so as to rationalize the amount for compounding of various offences by reducing the minimum as well as maximum amount fo....
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....hat have legal force. While utmost care has been taken to clearly reflect the intention of the Government in the Finance Bill and the Notifications, the possibility of an inadvertent error cannot be ruled out. I, therefore, request you to kindly go through the Finance Bill, the Memorandum and the Notifications and bring to our notice, at the earliest, if there are any omission/error or discrepancies. You are also requested to study the budgetary changes and ensure the smooth implementation of the proposed changes keeping the convenience of the taxpayers in mind. The copies of Finance Bill, 2023, Finance Minister's Budget Speech, Explanatory Memorandum to the Bill and relevant notifications can be downloaded directly from www.indiabudget.gov.in as well as www.cbic.gov.in. 5. In case of doubt or difficulty on any issue, you are requested to bring it immediately to my notice at [email protected] or to the notice of Shri Rakesh Dahiya, Deputy Secretary (TRU) (Tel: 011-23092236, email: [email protected]), Ms. Amreeta Titus, Deputy Secretary (TRU) (Tel: 0 11-23092753, email: [email protected]) or Sh. Sandesh Lokhande, Budget Officer (TRU) (Tel: 011-23095547, email: slokhande.9@gov.....
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....paedic implants falling under 902110 21. 261 Alatheon and copper wire 22. 269 Super absorbent polymer for manufacture adult diapers, tampons, sanitory pads (9619) 23. 271 Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn 24. 276 Ethylene - propylene - non-conjugated diene rubber (EPDM) for manufacture of insulated wires and cables 25. 277A Calendared plastic sheet for manufacturing of Smart Card (8523) 26. 279 Pneumatic tyres of rubber for MRO of aircraft used in scheduled air service 27. 280 Pneumatic tyres of rubber for MRO of aircraft used by training, aeroclub etc. 28. 333 Moulds, tools and dies for manufacture of parts of electronic components 29. 334 Graphite Felt or graphite pack for growing silicon ingots; Thin steel wire used in wire saw for slicing of silicon wafers 30. 339 Toughened glass for solar thermal collectors or heaters 31. 353 Foreign currency coins when imported into India by a Scheduled Bank 32. 364A Spent catalyst or ash containing precious metals 33. 378 Metal parts for manufacture of electrical insulators falling under heading 8546 34. 379 Pipes and tubes for use in manu....
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....r mPOS (other than Mobile Phone or Tablet Computer); parts and components for manufacture of the above items 57. 471 All parts for use in the manufacture of LED lights or fixtures including LED lamp 58. 472 All inputs for use in the manufacture of LED driver or MCPCB for LED lights and fixtures or LED lamps 59. 475 Specified goods including scramblers, descramblers, encoders, jammers, network firewall, SMS monitoring system etc 60. 476 Television equipment, cameras and other equipment for taking films, imported by a foreign film unit or television team 61. 477 Photographic, filming, sound recording and radio equipment, raw films, video tapes and sound recording tapes of foreign origin if imported into India after having been exported therefrom. 62. 478 The wireless apparatus, parts imported by a licensed amateur radio operator 63. 480 Goods imported for being tested in specified test centers 64. 482 Newspaper page, transmission and reception facsimile system or equipment; telephone transmission and reception system or equipment 65. 489B Specified goods for manufacturing of microphones 66. 495 Batteries for electrically operated vehicles, i....
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....training etc 91. 546 Parts (other than rubber tubes) of aircraft of heading 8802 by aero club/training etc 92. 548 Barges or pontoons imported along with ships 93. 549 Capital goods and spares, raw materials, parts, material handling equipment and consumables for repairs of ocean-going vessels by a ship repair unit 94. 550 Spare parts and consumables for repairs of ocean-going vessels registered in India. 95. 551 Cruise ships, Excursion ships (excluding vessels and floating structures imported for breaking up) 96. 553 Fishing vessels, Tugs and Pusher crafts, light vessels (excluding vessels and floating structures imported for breaking up) 97. 555 Vessels like warships, lifeboats (excluding vessels and floating structures imported for breaking up) 98. 565 Specified goods for use in the manufacture of Flexible Medical Video Endoscope 99. 566 Polypropylene, Stainless-steel Strip and stainless steel capillary tube for manufacture of syringes, needles, catheters and cannulae 100. 567 Stainless steel tube and wire, cobalt chromium tube etc for manufacture of Coronary stents /artificial valve 101. 568 Parts and components required fo....
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.... by renowned shot 8 148/94- Customs Exemptions to specified free gifts, donations, relief and rehabilitation material imported by charitable trusts, Red Cross, CARE and Govt of India 9 151/94- Customs Exemption to aircraft equipment, tanks, fuel and lubricating oils by Indian Airlines, United Arab Airlines, Indian Air Force 10 152/94- Customs Exemption to imports for handicapped person, charitable or social welfare purposes and research and education programme 11 153/94- Customs Exemption to goods for foreign origin imported for repair and return 12 39/96- Customs Imports relating to defence, internal security forces& air forces 13 50/96- Customs Exemption to specified equipment, instruments, raw material etc imported for R&D projects 14 51/96- Customs Exemption to research equipment by publically funded and research institutions ,Govt. Dept., laboratory, IIT etc 15 25/98- Customs Effective rate of duty for goods of Chapter 70,84,85 or 90 16 97/99- Customs Exemption to Gold bars under Gold Deposit Scheme of RBI 17 113/2003- Customs Exemption to castor oil cake and castor de-oiled cake manufactured from indigenous castor oil seeds on indigeno....
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....arts for use in textiles industry 6. 403 Parts and raw materials for manufacture of goods of off- shore oil exploration or exploitation 7. 407 Goods required for substitution of ozone depleting substances (ODS) and setting up of new capacity with non-ODS technology 8. 408 Machinery, instruments, apparatus and appliances or raw material for renovation or modernization of a fertilizer plant fertilizer plants and spare parts, consumable stores, essentials for maintenance of that plant 9. 430 Goods for use in pharmaceutical and biotechnology sector for R &D 10. 432 Specified goods for use in the textile industry 11. 434 Specified machinery and capital goods for use in the silk textile industry 12. 436 Spares, supplied with outboard motors for maintenance of such outboard motors 13. 448 Specified advance capital goods/machinery used in agriculture 14. 460 Shuttle less looms and parts/components for its manufacturing 15. 513 Parts or components for use in manufacture of populated printed circuit board of DVR, NVR,CCTV camera 16. 393 Machinery/Capital goods for manufacturing sports goods 17. 394 Bacteria removing clarifier 18. 395 M....