TaxTMI 
TaxTMI 
Changes in Customs, Central Excise, GST law and rates have been proposed through the Finance Bill, 2023
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....nt of the Bill or from the date specified in the Finance Bill. Changes have also been proposed 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....
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....er being exempted from SWS. c) The import duty on imitation jewellery classified under Heading 7117 is being increased from 22% or Rs. 400/kg, whichever is higher' to '25% or Rs. 600/kg, whichever is higher'. It is however being exempted from SWS. 3. Export Promotion: a) The BCD on 'seeds' for use in manufacture of rough lab grown diamond is being reduced to Nil subject to IGCR condition for a period of two years. b) The BCD on certain ingredients/inputs for use in the manufacture of aquatic 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....
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.... '25% or Rs. 30/kg whichever is lower'. f) The BCD on pecan nuts is being reduced from 100% to 30%. The SWS exemption is being withdrawn. g) The BCD on Warm blood horse imported by sports person of outstanding eminence for training purpose for equestrian sports is being reduced from 30% to Nil subject to conditions. 9. Social welfare surcharge (SWS) The following goods are being exempted from levy of Social Welfare Surcharge in order to maintain the total effective duty owing to rationalization of basic customs duty rate structure: 1. Silver (HSN 7106), Gold ( HSN 7108) & Imitation Jewellery (HSN 7117) 2. Platinum (HSN 7110) other than rhodium and goods covered under S. Nos. 415(a) and 415A of the Table annexed to 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. 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 30^th June, 2017, published in the Gazette of India vide number G....
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....bsp; From To 1. Coal, peat, lignite 1.5% Nil 2. New pneumatic tyres, of rubber , of a kind used on aircraft as mentioned in Entry 280 A of Notification No. 50/2017-Cus Nil 0.5% 3. Gold bar 2.5% 5% 4. Gold Dore 2.5% 4.35% 5. Platinum other than rhodium and goods covered under S. Nos. 415(a) and 415A of the Table in notification No. 50/2017-Customs, dated the 30th June, 2017. 1.5% 5.4% 6. Aero planes and other aircraft covered under S.No. 543A of Notification No. 50/2017-Cus Nil 0.5% Note: Description of entries is indicative, notification may be referred for complete description. 11. Review of Exemptions Out of 196 exemptions, 146 exemptions are being extended for a period of one year i.e. up to 31.3.2024 for the purpose of undertaking review. Of the remaining, a few are being extended for five years, two years and one year while some exemption entries are being discontinued with effect from 31.3.2023. The details of exemption entries/ notifications extended by five years, two years and one year are as follows: S. No S.No.in ....
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....Vs) or hybrid motor vehicle 5% 5% 5. 237 Specified inputs for use in the manufacture of EVA sheet or back sheets which are used in the manufacture of solar cell or modules Nil Nil 6. 340 Solar tempered glass for use in the manufacture of solar cell or solar module Nil Nil Note: Description of entries is indicative, notification may be referred for complete description. In addition, there are 146 conditional exemptions covered by Notification no 50/2017-Customs and standalone notifications that are also being extended up to 31.3.2024 for the purpose of undertaking review during the year which is at Annexure -I. The list of conditional /unconditional exemption entries under notification no 50/2017-customs and standalone notification discontinued with effect from 31.3.2023 is at Annexure -II. B CENTRAL EXCISE 1. The Seventh Schedule of the Finance Act, 2001 is being amended to revise the specific rates of National Calamity Contingent Duty (NCCD) levied as duty....
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....tent and scope of these provisions. They are also being validated retrospectively with effect from 1st January 1995. (ii) The First Schedule to the Customs Tariff Act, 1975 is being amended to introduce new tariff lines or modify existing tariff lines. The proposed changes are in chapter 3, chapter 4, chapter 9, chapter 10, chapter 12, chapter 13, chapter 19, chapter 27, chapter 29, chapter 31, chapter 38, chapter 39, chapter 48, chapter 52, chapter 54, chapter 57, chapter 61, chapter 62, chapter 63, chapter 69, chapter 71, chapter 84, chapter 85, and chapter 87. Changes which does not involve change in rate of duty would come into effect from 1.5.2023. (iii) The General explanatory note to the General Rules for interpretation of the Schedule is being amended to carry out some changes which inter alia, include changes to align the abbreviations and the tariff with complementary amendments to the HS 22. These changes would come into effect from 1.5.2023. (iv) The First Schedule to the Customs Tariff Act, 1975 is also being amended to modify the tariff rates on certain tariff items as part of rationalization of customs duty rate structure. Wherever the....
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....hich the details of outward supplies under sub-section (1) of the said section for a tax period can be furnished by a registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a registered person or a class of registered persons. f) A new sub-section (11) in section 39 of the CGST Act is being inserted so as to provide a time limit upto which the return for a tax period can be furnished by a registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a registered person or a class of registered persons. g) A new sub-section (2) in section 44 of the CGST Act is being inserted so as to provide a time limit upto which the annual return under sub-section (1) of the said section for a financial year can be furnished by a registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a registered person or a class of registered persons. h) A new sub-sec....
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....furnished by the registered person in his return or in his application of registration or in his statement of outward supplies, or the details uploaded by him for generation of electronic invoice or E-way bill or any other details, as may be prescribed, on the common portal with such other systems, as may be notified. o) Schedule III of the CGST Act is being amended to give retrospective applicability to paras 7, 8 (a) and 8(b) of the said Schedule, with effect from 01st July, 2017, so as to treat the activities/ transactions mentioned in the said paragraphs as neither supply of goods nor supply of services. It is also being clarified that where the tax has already been paid in respect of such transactions/ activities during the period from 01st July, 2017 to 31st January, 2019, no refund of such tax paid shall be available. IGST Act, 2017: a) Clause (16) of section 2 of the IGST Act is being amended so as to amend the definition of "non-taxable online recipient" by removing the condition of receipt of online information and database access or retrieval services (OIDAR) for purposes other than commerce, industry or any other business or profession so as to prov....
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.... personally thank my each and every member of my team and each one of you on behalf of my team for your suggestions/inputs and look forward to your comments/feedback. With regards Yours Sincerely, (Limatula Yaden) Joint Secretary (TRU-I) Annexure I Conditional exemptions entries in Notification no 50/2017-Customs extended for one year, i.e. upto 31.3.2024 to be taken up for review this year S. No. S. No. of Notfn Description Extension up to 31. 03. 2024 1. 90 Lactose for use in manufacture of homeopathic medicine 2. 133 Gold ores and concentrates for use in manufacture of Gold 3. 139 Specified bunker Fuel for use in ships or vessels 4. 150 Goods of Heading 2710 or 271490 for manufacture of Fertilizers 5. 155 Excess Liquefied petroleum gases (LPG) returned by DTA unit to SEZ unit 6. 164 Electrical energy supplied to DTA by power plants of 1000MW or above ,got approval 7. 165 Electrical energy supplied to DTA from power plant less than 1000MW 8. 18....
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....p; 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 manufacture of boilers 35. 380 Forged steel rings for manufacture of special bearings for use in wind operated electricity generator 36. 381 Flat copper wire for use in the manufacture of photo voltaic ribbon for solar cell/modules 37. 387 Zinc metal recovered by toll smelting or toll processing from zinc concentrates exported from India for such processes 38. 392 Dies for drawing metal, when imported after repairs in exchange of similar worn out dies exported out for repairs 39. 415 Parts/inputs for manufacture of cataly....
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....CB 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, including two and three wheeled electric motor vehicles 67. 497 Active Energy Controller (AEC) for use in manufacture of Renewable Power System (RP....
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....p; 543 Specified goods imported by non-scheduled air transporter 90. 544 Parts (other than rubber tubes) of aircraft of heading 8802 for schedule, 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 9....
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.... in show-rooms of Govt of India 2 80/1970- Customs Exemption to articles supplied free under warranty as replacement for defective ones 3 46-Customs (1974) Pedagogic material for educational or vocational training courses 4 248/76- Customs Exemption to precious stones imported by posts on 'approval or return' basis 5 207/89- Customs Exemption to foodstuff and provisions, imported by foreigners 6 134/94- Customs Exemption to goods for carrying out repairs, reconditions , testing calibration or maintenance 7 147/94- Customs Exemptions to firearms & ammunition 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 f....
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....2017- Customs Exemption to special Additional Duty on specified goods of fourth schedule to Central Excise Act 31 52/2017- Customs Effective rate of Additional duty for goods under Chapter 27 Note: Description of entries is indicative, notification may be referred for complete description. Annexure II Conditional /unconditional exemption entries in notification no 50/2017-customs being discontinued with effect from 31.3.2023. S. No. Entry. No. Notfn No. 50/2017 Description of goods 1. 132 Goods for manufacture of specified refractory products 2. 289 Wood in chips or particles for manufacture paper and paperboard; newsprint. 3. 397 Specified goods for use in high voltage power transmission project 4. 399 Specified goods and their parts for use in manmade or synthetic fibre or yarn industry 5. 400 Specified goods and its parts for use in textiles industry 6. 403 Parts and raw materials for manufacture of goods of off- shore oil exploration or exploitation 7. 407 ....