TaxTMI 
TaxTMI 
Changes in Customs, Central Excise, GST law and rates have been proposed through the Finance (No.2) Bill, 2024
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....iod from 1st April, 2023 up to and inclusive of 10th May,2023 to provide exemption from basic customs duty and AIDC on imports of crude soyabean oil and 'crude sunflower seed oil subject to availability of unutilized quota in TRQ authoriiation for FY 2022-23 allotted by DGFT and Bill of lading issued on or before 31st March,2023; (iv) through Clause 108 read with the Fifth Schedule, amendment has been proposed in Notification No. 12/2012- Central Excise dated 17.3.2012 to extend the timeline to submit the final Mega Power Certificate ; (v) through Clause 109 read with the Sixth Schedule, exemption from Clean Environment Cess has been proposed on excisable goods lying in stock as on 30.6.2017 on which appropriate GST Compensation Cess has been paid on supply of such goods or after 1.7.2017. The changes proposed through sub -clause (a) of Clause 107 will take effect on the midnight of 23rd/24th July ,2024 by virtue of a declaration under The Provisional Collection of Taxes Act, 2023. The other changes proposed in the Bill would come into effect on the enactment of the Bill or from the date specified in the Finance (No.2) Bill. 3. Changes have a....
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....ish oil 30% Nil Algal prime (flour) 15% Nil e) BCD has been reduced to 5% on Insect Meal for use in R&D for aquatic feed manufacturing f) BCD has been reduced to 5% on Single Cell Protein from Natural Gas for use in R&D for aquatic feed manufacturing g) BCD has been reduced SPF Polychaete worms 30% to 5%. h) BCD has been reduced to Nil on pre-dust breaded powder for use in processing of seafood. (4). Chemicals and petrochemicals: a) The BCD on Ammonium Nitrate has been increased from 7.5% to 10%. b) The tariff rate of CTH 3920 and 3921 has been increased to 15%. Consequently, from 24.7.2024 , PVC Flex Films/Flex Banners will attract 25% by virtue of declaration under Provisional Collection of Taxes Act 2023. However, Notification No 50/2017-Customs has been amended to maintain the existing rate of 10% on items other than PVC Flex Films/Flex Banners. (5). Drugs The BCD has been fully exempted on the following Cancer Drugs: (i) Trastuzumab Deruxtecan (ii) Osimertinib (iii) Durvalumab (6). ....
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....35% Nil Nil 5.35% b) As a consequential change, the BCD has been reduced from: (i) 7.5% to 5% on Platinum and Palladium used in the manufacture of noble metal solutions, noble metal compounds and catalytic convertors (ii) 7.5% to 5% on bushings made of platinum and rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India Consequential changes have also been carried out in S. Nos. 357, 357A, 357B, 364A, 364B, 364C, 415, 415A and 442 of Notification No. 50/2017 dated 30.06.2017, Notification No. 22/2022, dated 30.04.2022 and Notification No. 57/2000, dated 08.05.2000 accordingly. (9). Other Metals a) BCD has been reduced on Ferro-Nickel from 2.5% to Nil. b) BCD has been reduced on Blister Copper from 5% to Nil. c) The BCD exemption on Ferrous Scrap has been continued upto 31.3.2026. d) The concessional BCD rate of 2.5% on Copper scrap has been continued. e) The exemption on specified raw material for manufacture of CRGO steel has been continued upto 31.3.2026. Further, the exemption has also been extended&nbs....
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....nbsp; • 28 exemptions/ concessional rates are being lapsed on their end dates of 30.9.2024 (Annexure -III ) • end dates are being removed in 4 exemptions as they are covered by the exclusion clause. (Annexure -IV) It may be noted that while continuing the exemptions/concessional rates, some entries have been pruned or modified. III. OTHER PROPOSALS IN THE FINANCE (NO.2) BILL a) Notification No. 37/2023- Customs dated 10.5.23 is being validated for the period from 1st April, 2023 up to and inclusive of 10th May,2023 to provide exemption from basic customs duty and AIDC on imports of crude soyabean oil and crude sunflower seed oil subject to availability of unutilized quota in TRQ authorization for FY 2022-23 allotted by DGFT and Bill of lading issued on or before 31st March,2023.[Clause 105 of the Bill] b) The Clean Environment Cess is being exempted on excisable goods lying in stock as on 30th June, 2017 subject to payment of appropriate GST Compensation Cess on supply of such goods on or after 1st July, 2017.[Clause 109 of the Bill] c) Based on the rec....
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....The First Schedule to the Customs Tariff Act, 1975 is being amended to,- (i) increase the rates on certain tariff items. (The duty rate is effective from 24.7.2024 by virtue of declaration under Provisional Collection of Taxes Act 2023) (ii) create new tariff lines in respect of defence products, technical textiles, sustainable blended aviation fuel, products used in Indian semiconductor machines, e-bicycles, natural menthol, printer cartridge etc. These changes shall come into effect from 1.10.2024. c) Amendment in Countervailing Duty on Subsidized Articles a Rules, 1995 The Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 have been amended to insert a provision for New Shipper Review . This will be effective from 24.07.2024. GOODS AND SERVICES TAX Unless otherwise specified, amendments proposed in the Finance (No.2) Bill 2024 will come into effect from the date when the same will be notified concurrently, as far as possible, with the corresponding amendments to the similar Acts passed by the States & Union territories with legislature. a) Amendments....
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....crore of central tax to Rs. 20 crore of central tax and to reduce the amount of pre-deposit for filing appeal with the Appellate Tribunal from 20% with a maximum amount of Rs. 50 crore of central tax to 10 % with a maximum of Rs. 20 crore of central tax. Besides, the time limit for filing appeals before the Appellate Tribunal is being modified to avoid the appeals from getting time barred, on account of Appellate Tribunal not coming into operation. 6) Section 128A is being inserted in the CGST Act to provide for a conditional waiver of interest and penalty in respect of demands pertaining for financial years 2017-18, 2018-19 and 2019-20, in cases where demand notices have been issued under section 73 and full tax liability is paid by the taxpayer before a date to be notified. 7) Section 140 (7) of CGST Act is being amended, retrospectively with effect from 01.07.2017, to enable availment of transitional credit in respect of input services received by an Input Services Distributor prior to the appointed day, where invoices were also received prior to the appointed day. 8) Section 171 of CGST Act is being amended to enable the Government to notify the GST A....
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.... the government to specify cases to be heard only by the Principal Bench of the Appellate Tribunal. 18) Section 122(1B) of CGST Act is being amended to restrict the applicability of penal provisions under this section to only those Electronic Commerce Operators who are required to collect tax at source under section 52. 19) Section 73 and 74 of CGST Act is being amended to limit the applicability of theses sections to demands up to FY 2023-24, since from FY 2024-25 onwards demands are to be ascertained as per provisions of newly inserted section 74A. Also, Section 75 of CGST Act is being amended to allow for redetermination of penalties if the charges of fraud, suppression, or willful misstatement are not established. Further, reference to section 74A or the concerned sub-sections of section 74A is being inserted in section 10, section 21, section 35, section 49, section 50, section 51, section 62, section 63, section 64, section 65, section 66, section 104 and section 127. b) Amendments in the IGST Act, 2017 (i) Sub-section (1) in Section 5 in the IGST Act is being amended, so as to not levy integrated tax on Extra Neutral Alcohol used for manufacture....
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....levant notifications that have legal force. 7. My team and I have taken utmost care to clearly reflect the intention of the Government in the Finance (No.2) Bill and the Notifications. However, the possibility of an inadvertent error cannot be ruled out. I, therefore, request you to kindly go through the Finance (No.2) Bill, the Memorandum & 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 (No.2), 2024, 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. 8. 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, Director (TRU) (Tel: 011- 23092236, email: [email protected]), Ms. Amreeta Titus, Deputy Secretary (TRU) (Tel: 011- 23092753, email: [email protected]) or Sh. Vinay V. Nayak , Budge....
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....r a bilateral agreement; goods imported by Indian Red Cross Society, goods for the purposes of relief and rehabilitation 6 152/94-Customs dated 13 July 1994 Appliance/aids for blind/handicapped imported by institution for blind & deaf; and other specified teaching aids imported by Govt Universities 7 153/94-Customs dated 13 July 1994 Articles for foreign origin imported for repair and return, theatrical equipment and costumes, mountaineering expedition equipment, photographic, filming recording etc 8 134/94-Customs dated 22 June 1994 Specified capital goods, and other ancillary items imported for repairs 9 39/96-Customs dated 23 July 1996 Specified imports relating to Defence, internal security forces and Air Force. 10 50/96-Customs dated 23 July 1996 Specified equipment, instruments, raw materials, components, pilot plant and computer software when imported for publicly funded R & D projects 11 51/96-Customs dated 23 July 1996 Scientific and technical instruments, apparatus,....
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....TA 9. 172 Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module 10. 183 Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals 11. 184 Pharmaceutical Reference Standard 12. 188 Goods for manufacture of ELISA Kits 13. 191 Maltol for manufacture of deferiprone 14. 204 Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide 15. 253 Specified Goods for manufacture of Brushless Direct Current (BLDC) motors 16. 257 Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters 17. 257A Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter 18. 258 Security fibre, threads, Paper based Taggant,M-feature for use in manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore. 19. ....
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....st or ash containing precious metals 37. 368 Ferrous Scrap 38. 378 Metal parts for manufacture of electrical insulators falling under heading 8546 39. 379 Pipes and tubes for use in manufacture of boilers 40. 380 Forged steel rings for manufacture of special bearings for use in wind operated electricity generators 41. 381 Flat copper wire for use in the manufacture of photo voltaic ribbon for manufacture of solar photovoltaic cell or modules 42. 392 Dies for drawing metal, where imported after repairs from abroad 43. 403 Parts and raw materials for offshore oil exploration 44. 415 Parts for manufacture of catalytic convertors 45. 415A Platinum or Palladium for manufacture of Noble Metal Compounds & Noble Metal Solutions 46. 416 Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters 47. 417 Cerium compounds for use in the manufacture of washcoat for catalytic converters 48. ....
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.... 512 Specified Parts, components and for use in manufacture of Lithiumion battery and battery pack 72. 512A Inputs, parts or sub-parts for use in the manufacturing of Printed Circuit Board Assembly 73. 515A Open Cell for manufacture of TV Panel 74. 516 The following goods for use in the manufacture of Liquid Crystal Display (LCD) /LED TV Panel 75. 517 Magnetrons for manufacture of domestic microwave ovens 76. 519 Raw materials or parts for use in manufacture of e-Readers 77. 523A Parts, sub-parts, inputs or raw material for use in manufacture of Lithium ion cells 78. 527 Lithium ion cell use in manufacture of battery or battery pack 79. 527A Lithium Ion Cell for use in manufacture of battery or battery pack of cellular mobile 80. 527B Lithium Ion Cell manufacture of battery or battery pack of EV 81. 534 Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders) 82. 535 Raw materials for manufac....
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....ys 107. 593 Parts of video games for the manufacture of video games 108. 150 Naphtha for manufacture of Fertilisers (scope of exemption is being reduced only to Naphtha) 109. 468 Parts for manufacture of Micro ATM, Fingerprint reader/scanner, Iris scanner, Miniaturised POS (Scope of exemption is being limited to import of raw materials only) 110. 237 Specified material for manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules (Scope of materials which can be imported is being increased) 111. 260 Goods for the manufacture of specified orthopedic implants (902110) 112. 374 Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented (CRGO) steel 113. 375 Specified items for manufacture of cold rolled grain oriented steel (CRGO) steel 114. 257B Specified goods used in manufacture of textile or leather garments for export when imported by bonafide exporter 115. 257C Specified goods used in man....
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....rom India for such processes 4 441 Spinnerettes made inter alia of Gold, Platinum and Rhodium or any one or more of these metals, when imported in exchange of worn-out or damaged spinnerettes exported out of India 5 238 Organic/inorganic Coating material for manufacture of electrical steel 6 254 Catalyst for manufacture of cast components of Wind Operated Electricity Generator 7 255 Resin for manufacture of cast components of Wind Operated Electricity Generator 8 277A Calendared plastic sheet for manufacturing of Smart Card under chapter heading 8523 9 339 Concessional rate on import of Toughened glass with low iron content and transmissivity of minimum 91% and above, for use in manufacture of solar thermal collectors or heaters 10 421 Specified goods required for basic telephone service, cellular mobile telephone service, internet service or closed group 64 KBPS domestic data network via INSAT satellite system s....