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Immunity for benamidars: conditional immunity offered to encourage full disclosure, withdrawable for falsehood or concealment.
Insertion of Section 55A permits the Initiating Officer, with previous sanction of the competent authority, to tender conditional immunity from penalty under section 53 to non-beneficial-owner persons involved in benami transactions in exchange for a full and true disclosure; accepted immunity renders them immune from prosecution and penalty to the extent tendered, but the Initiating Officer may record non compliance or falsehood and, with sanction, withdraw immunity, enabling prosecution and imposition of penalties for the offence or related offences.
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Proof of origin rules updated to accept diverse trade agreement documentation, including self certification, facilitating trade.
The Customs Act amendments permit varied forms of proof of origin, including self certification, to align with trade agreements; empower the Central Government to proscribe specific manufacturing or other operations in warehouses; and expand references from "a class of importers or exporters" to include "any other persons," broadening the scope of certain customs provisions.
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Protective duty mechanism removed as the statutory provision requiring Tariff Commission recommendations is omitted, ending that process.
Section 6 of the Customs Tariff Act, 1975, authorising levy of protective duties by the Central Government on recommendations of the Tariff Commission is omitted by the Finance (No. 2) Bill, 2024 because the Tariff Commission was wound up by resolution on 1 June 2022; the change is effective from enactment of the Bill.
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Increase in tariff rates for plastics, consumer and laboratory chemicals to take immediate provisional effect; additional tariff amendments from October.
The Finance (No. 2) Bill, 2024 amends the First Schedule to the Customs Tariff Act, 1975 to implement immediate provisional increases in specified basic customs duties using the Provisional Collection of Taxes Act, 2023 for certain PVC flex films, consumer goods and laboratory chemicals in small packings, and further tariff adjustments to be given effect in the Schedule from October while preserving current BCD levels for other affected goods via notification amendments.
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Basic customs duty reductions across sectors to incentivise domestic manufacturing and simplify export-duty treatment.
The Finance (No.2) Bill, 2024 revises Basic Customs Duty rates effective 24 July 2024, lowering or nil-rating duties across agricultural inputs, aquaculture, critical minerals, metals, chemicals, IT and electronics, medical equipment, renewable energy inputs and precious metals; it also simplifies and rationalises export duties on hides, skins and leather to streamline export taxation.
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Validation of customs notification restores duty exemption for specified oil imports subject to TRQ and bill of lading conditions.
The Finance (No. 2) Bill, 2024 validates Notification No. 37/2023 to confirm exemption from basic customs duty and anti-dumping/countervailing duties on imports of crude soybean oil and crude sunflower seed oil, conditional on unutilized TRQ quota and a bill of lading issued on or before 31 March, 2023; it also exempts GST Compensation Cess on imports into SEZs by SEZ units or developers for authorized operations.
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New Shipper Review introduced for countervailing duty rules, enabling review of new exporters under amended procedures.
Amendment inserts a New Shipper Review provision into the Customs Tariff Rules, 1995 to permit review of new exporters or suppliers within the existing framework for identification, assessment and collection of countervailing duty and for determination of injury; effective from 24.7.2024.
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Temporary import time limits extended for aircraft, vessels and warranty exports, enabling longer duty-free re-import and repair periods.
The notifications extend temporal reliefs and adjust tariffs: aircraft and vessels imported for maintenance, repair and overhaul may remain imported for one year (further extendable by one year), warranty exports qualify for duty free re import for five years (further extendable by two years), and the India-UAE CEPA tariff notification is amended to revise duty rates on precious metals; changes effective 24 July 2024.
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BCD exemption extensions preserve duty-free treatment for specified imports, with targeted scope adjustments for certain inputs.
The Finance measure extends conditional Basic Customs Duty (BCD) exemptions for numerous specified goods-inputs, parts, capital goods, and medical supplies-preserving duty-free import treatment subject to existing notification conditions, while narrowing or broadening the scope of certain entries and maintaining targeted provisions for SEZ-related supplies and bona fide exporters; stakeholders must refer to the notification for full descriptive and documentary eligibility requirements.
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Customs duty exemptions extended and expiry clauses removed, preserving specified import concessions for listed goods and sectors.
Amendments extend Basic Customs Duty (BCD) exemption timelines for specified notifications and remove prescribed end dates for another subset, thereby sustaining concessional import treatment for listed categories such as media content, specialised machinery, castor products, artworks, precious stones on approval basis, copper products, export-jobbing inputs, instructional materials and other sectoral items; notifications remain authoritative for full descriptions.
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Customs duty exemptions lapse removing concessional import treatments across multiple sectors and specified notification-based exemptions.
Customs duty exemptions and concessional notifications listed in earlier customs instruments are being allowed to lapse, removing specified concessional import treatments. Affected provisions include selected entries of notification No. 50/2017-Customs covering inputs and equipment for sectors such as solar manufacturing, electric vehicles, medical devices, telecommunication equipment, and certain industrial catalysts, and several standalone notifications granting exemptions for gold imports by banks, donated second-hand computers, SAD-related exemptions, SEZ to DTA transfers, and aviation re-imports.
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Social Welfare Surcharge exemption for specified minerals and metal inputs removes surcharge on listed imported goods.
Amendment to Notification No. 11/2018 exempts a specified list of imported goods from the levy of the Social Welfare Surcharge with effect from 24 July 2024, covering raw minerals, metal ores and concentrates, high purity silicon and silicon products, rare earth metals and compounds, various oxides, hydroxides, salts and carbonates, graphite and a range of unwrought metals, powders, waste and scrap.
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Agriculture Infrastructure and Development Cess rate reduction alters customs duty incidence on specified precious metal imports.
Amendment revises the Agriculture Infrastructure and Development Cess (AIDC) rates on specified precious metal goods by modifying Notification No. 11/2021 - Customs, effective 24 July 2024, reducing AIDC and altering the effective customs duty incidence on listed tariff entries including gold, silver, platinum group metals, coins of precious metals, and related findings.
News Bills
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Exemption of Clean Environment Cess on stock, subject to GST compensation cess on subsequent supplies.
The amendment extends the submission period for the final Mega Power Project certificate under Notification No.12/2012 Central Excise from 120 to 156 months. It also exempts Clean Environment Cess on excisable goods in stock as of 30 June 2017, conditional on payment of applicable GST Compensation Cess on supplies of those goods on or after 1 July 2017. Both changes take effect from the date of enactment of the Finance (No. 2) Bill, 2024.
News Bills
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Limitation on GST demand determination: new unified regime for post-change periods with restructured penalties and appeal pre-deposit rules.
Insertion of Section 74A establishes a separate regime for determination of tax not paid, short paid, erroneously refunded or incorrect input tax credit for periods from the Financial Year 2024-25 onwards, prescribes a uniform limitation period for issuing demands and orders for those periods, retains higher penalties where fraud, wilful misstatement or suppression is found, and triggers consequential amendments across assessment, recovery, credit, return-filing and appeal provisions to align procedures and pre-deposit requirements.
News Bills
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Zero rating changes in IGST allow notified classes to claim refunds subject to prescribed conditions and export duty restrictions.
The Bill amends IGST to exempt Extra Neutral Alcohol used in making alcoholic liquor from integrated tax; empowers the Government to regularize non levy or short levy arising from established general practice; revises the zero rating regime to allow notification of classes eligible for zero rated supplies and corresponding refunds under Central GST refund rules while barring refunds where export duty applies; and reduces maximum pre deposit amounts required to file appeals before the appellate authority and the Appellate Tribunal.
News Bills
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Tax exemption for extra neutral alcohol removes union territory tax when used to make alcoholic liquor, altering levy scope.
Amendment excludes union territory tax on Extra Neutral Alcohol used in manufacture of alcoholic liquor for human consumption, narrowing the UTGST taxable base and requiring suppliers and manufacturers to adjust tax treatment. A newly inserted Section 8A authorizes the government to regularize non-levy or short levy of union territory tax where such shortfall resulted from a general practice, creating a mechanism to validate or correct historical under-collection attributable to systemic practices.
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Regularisation of cess shortfalls where non levy arose from general practice allows government to sanction corrective levy.
Section 8A empowers the government to regularize cases of non-levy or short-levy of the compensation cess where such under-collection arose from a prevailing general practice, providing an administrative mechanism to treat practice-driven cess shortfalls as regularizable liabilities under the GST compensation framework.
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Optional personal tax regime clarified with default slab rules, restricted deductions, and surcharge plus cess implications.
Existing special-rate provisions for companies and cooperative societies remain unchanged for AY 2023-24 while Part I of the First Schedule prescribes standard slab rates for other assessees; the optional personal tax regime permits eligible individuals and HUFs to elect alternative slab rates with disallowance of most deductions except specified allowances, procedural rules govern exercise and revocation of the option, and surcharge, marginal relief and a fixed health and education cess apply with specified caps and computation rules.
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TDS rates and surcharge framework for the fiscal year set; winnings from online games are subject to withholding at a specified rate.
TDS rates for non-salary incomes for FY 2023-24 remain as in the prior schedule and apply under the specified withholding provisions; the schedule now also covers withholding on online gaming winnings at the rate set in the Bill. Prescribed section rates govern deduction. A multi-tier surcharge regime increases deducted tax by differing rates across taxpayer categories and income bands, with caps limiting surcharge on dividend and specified capital-gains income and an alternative-regime surcharge restriction. Health and Education Cess of four percent applies on tax including surcharge where applicable.

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Review of Customs duty Exemptions - Review of conditional exemption rates of BCD

24 July, 2024

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Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

(i) The BCD exemption for the goods covered under following serial numbers of the notification are being extended upto 31st March, 2026 unless specified otherwise.

S. No.

S N of 50/17-Cus

Brief Description

1.

17

Specified Planting materials, namely, oilseeds, seeds of vegetables, tubers, etc.

2.

80A

Algal oil for manufacturing of aquatic feed

3.

90

Lactose for use in manufacture of homeopathic medicines

4.

104

Specified goods used in processing of sea-food

5.

133

Gold ores and concentrates

6.

139

Bunker Fuels namely: (i). IFO 180 CST; (ii). IFO 380 CST; (iii). VLSFO (CTH 27)

7.

150

Naphtha for manufacture of Fertilisers (scope of exemption is being reduced only to Naphtha)

8.

155

Liquefied petroleum gases (LPG) received from unit in SEZ and returned by the DTA unit to the SEZ unit

9.

164

Electrical energy supplied from SEZ unit to DTA

10.

165

Electrical energy supplied from SEZ to DTA

11.

172

Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module

12.

183

Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals

13.

184

Pharmaceutical Reference Standard

14.

188

Goods for manufacture of ELISA Kits

15.

191

Maltol for manufacture of deferiprone

16.

204

Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide

17.

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)

18.

253

Specified Goods for manufacture of Brushless Direct Current (BLDC) motors

19.

257

Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters

20.

257A

Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter

21.

257B

Specified goods used in manufacture of textile or leather garments for export when imported by bonafide exporter

22.

257C

Specified goods used in manufacture of leather or synthetic footwear or other leather products for export when imported by bonafide exporter

23.

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.

24.

259

Raw materials for manufacture of security fibre and security thread for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt. Ltd, Mysore for use in manufacture of security paper

25.

260

Goods for the manufacture of specified orthopedic implants (902110)

26.

261

Raw material for manufacture of Copper-T Contraceptive

(i) Alatheon

(ii) Copper Wire

27.

265

Capacitor grades polypropylene granules for manufacture of Capacitor grade plastic

28.

269

Super absorbent polymer for manufacture of adult diapers and specified goods

29.

271

Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn

30.

276

Ethylene- propylene- non-conjugated diene rubber (EPDM) for manufacture of insulated wire and cables

31.

279

New or retreated Pneumatic tyres of rubber for use in servicing, repair of maintenance of aircrafts used for operating scheduled air transport service or scheduled air cargo service etc

32.

280

New or retreated Pneumatic tyres of rubber for use in servicing, repair or maintenance of aircraft imported or procured by Aero Club of India/ for flying training purpose/ operating non-scheduled (passenger or charter) services/ AAI for flight calibration purpose

33.

290

Wood pulp for manufacture of newsprint, paper or paperboard

34.

292

Goods imported for manufacture of paper, paper boards, newsprint

35.

293A

Newsprint and uncoated paper imported for printing of newsprint

36.

296A

Lightweight coated paper imported by actual users for printing of magazines

37.

326

Hydrophilic /Hydrophobic Non- Woven, imported for use in the manufacture of Adult Diapers

38.

329

Pile fabrics for the manufacture of toys

39.

333

Moulds, tools and dies, for the manufacture of parts of electronic components or electronic equipment

40.

334

(i) Graphite Felt or Graphite pack for growing silicon ingots (ii) Thin Steel wire used in wire saw for slicing of silicon wafers

41.

345A

Simply Sawn Diamonds

42.

364A

Spent catalyst or ash containing precious metals

43.

368

Ferrous Scrap

44.

374

Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented (CRGO) steel

45.

375

Specified items for manufacture of cold rolled grain-oriented steel (CRGO) steel

46.

378

Metal parts for manufacture of electrical insulators falling under heading 8546

47.

379

Pipes and tubes for use in manufacture of boilers

48.

380

Forged steel rings for manufacture of special bearings for use in wind operated electricity generators

49.

381

Flat copper wire for use in the manufacture of photo voltaic ribbon for manufacture of solar photovoltaic cell or modules

50.

392

Dies for drawing metal, where imported after repairs from abroad

51.

403

Parts and raw materials for offshore oil exploration

52.

404

Specified items including capital goods and raw materials for off shore oil exploration

53.

415

Parts for manufacture of catalytic convertors

54.

415A

Platinum or Palladium for manufacture of Noble Metal Compounds & Noble Metal Solutions

55.

416

Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters

56.

417

Cerium compounds for use in the manufacture of washcoat for catalytic converters

57.

418

Zeolite for use in the manufacture of washcoat for catalytic converters

58.

422

Machinery, electrical equipment for use in semiconductor wafer and LCD

59.

423

Machinery, electrical equipment for use in marking and packaging of semiconductor chips

60.

426

Specified goods for the manufacture of semiconductor devices, memory card, IC, solar cell

61.

435

Capital goods for printing industry

62.

442

Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India

63.

446

Parts and components for manufacture of tunnel boring machines

64.

451

Evacuated tubes with three layers of solar selective coating for use in manufacture of solar water heater

65.

462

Ball screws for use in the manufacture of CNC Lathes

66.

463

Linear Motion Guides for use in the manufacture of CNC Lathes

67.

464

CNC Systems for use in the manufacture of CNC Lathes

68.

464A

Goods for manufacture of plastic processing machineries

69.

467

Parts and components of cash dispenser or automatic bank note dispenser

70.

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)

71.

471

All parts for use in the manufacture of LED lights

72.

472

All inputs for use in the manufacture of LED driver or MCPCB for LED lights

73.

476

Television equipment, cameras etc for taking films, imported by a foreign film unit or television team

74.

477

Filming equipment of foreign origin if imported into India after having been exported therefrom.

75.

480

Goods imported for being tested in specified test centers

76.

489B

Goods for manufacturing of Microphones

77.

504

Parts and Components of Digital Still Image Video Cameras

78.

509

Parts, components and accessories for manufacture of Digital Video Recorder

79.

510

 Parts, components and accessories for use in manufacture of reception apparatus for television

80.

511

Parts, components and accessories for manufacture of CCTV Camera

81.

512

Specified Parts, components and for use in manufacture of Lithium-ion battery and battery pack

82.

512A

Inputs, parts or sub-parts for use in the manufacturing of Printed Circuit Board Assembly

83.

515A

Open Cell for manufacture of TV Panel

84.

516

The following goods for use in the manufacture of Liquid Crystal Display (LCD) /LED TV Panel

85.

517

Magnetrons for manufacture of domestic microwave ovens

86.

519

Raw materials or parts for use in manufacture of e-Readers

87.

523A

Parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells

88.

527

Lithium-ion cell use in manufacture of battery or battery pack

89.

527A

Lithium-Ion Cell for use in manufacture of battery or battery pack of cellular mobile

90.

527B

Lithium-Ion Cell manufacture of battery or battery pack of EV

91.

534

Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders)

92.

535

Raw materials for manufacture of aircraft and parts of aircraft

93.

535A

Parts of aircraft for manufacture of aircraft or for manufacture of parts of aircraft by PSU under Min of Defence

94.

536

Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft, components or parts of aircrafts

95.

537

All goods of Heading 8802 (except 88026000-spacecraft)

96.

538

Components or parts, including engines, of aircraft of heading 8802

97.

539

(a) Satellites and payloads; (b) Ground equipment brought for testing of (a)

98.

539A

Scientific and technical instruments etc for launch vehicles and satellites

99.

540

Specified goods imported by scheduled air transporter

100.

542

Specified goods imported by Aero Club, Flying Training Institutes

101.

543

Specified goods imported by non-scheduled air transporter

102.

544

Parts (other than rubber tubes), of aircraft of heading 8802

103.

546

Parts (other than rubber tubes), of aircraft of heading 8802

104.

548

Barges or pontoons imported along with ships

105.

551

Cruise ships, Excursion ships

106.

553

Fishing vessels, Tugs and Pusher crafts, light vessels excluding vessels and floating structure imported for break up

107.

555

Vessels like warships, lifeboats excluding vessels and floating structure imported for break up

108.

567

Stainless steel tube and wire, for manufacture of Coronary stents /artificial valve

109.

569

Parts required for manufacture of Ostomy products

110.

570

Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof

111.

575

Specified Hospital Equipment for use in specified hospitals

112.

578A

Raw materials, for the manufacture of Cochlear Implants

113.

580

X-Ray Baggage Inspection Systems and parts thereof

114.

581

Portable X-ray machine / system

115.

583

Parts and cases of braille watches, for the manufacture of Braille watches

116.

591

Parts of electronic toys

117.

593

Parts of video games for the manufacture of video games

Note: Description of entries is indicative. Notification may be referred to for complete description.

(ii) The BCD exemption for the goods covered under following serial numbers of the notification no 50/2017-Customs is being extended upto 31st March 2029.

S. No.

S. No. of 50/2017Cus

Brief Description

1.

212A

Medicines/drugs/vaccines supplied free by United  Nations International Children's Emergency Fund (UNICEF), Red Cross etc

2.

213

Drugs and materials

3.

428

Specified goods imported by accredited press cameraman

4.

429

Specified goods, imported by accredited journalist

5.

549

Capital goods, raw materials and spares for repairs of ocean-going vessels

6.

550

Spare parts and consumables for repairs of ocean going vessels registered in India.

7.

577

Lifesaving medical equipment for personal use

8.

607

Life Saving drugs like Keytruda etc

9.

607A

Lifesaving drugs/medicines for personal use

10.

611

Archaeological artefacts for exhibition in a museum

11.

612

Specified raw material for sports goods

Note: Description of entries is indicative. Notification may be referred to for complete description.


Full Text:

Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Topics

Acts Income Tax