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    Tax provision amendment: removal of National Housing Bank references in income recognition rules for housing finance companies.
    Amendment proposes deleting references to the National Housing Bank in section 43D, removing the clause on public companies engaged in housing finance and related explanations that linked recognition of interest income on prescribed bad or doubtful debts to NHB guidelines, and aligning tax text with the regulatory transfer of housing finance companies to the Reserve Bank of India; the amendment is effective from 1 April 2025 and applies to subsequent assessment years.
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    Asset recovery: amendment enables liabilities under the Black Money Act to be recovered from seized or requisitioned assets.
    The amendment adds a reference to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 to Section 132B of the Income-tax Act, authorising recovery of existing liabilities under the Black Money Act from assets seized or requisitioned under section 132, with prospective effect from the 1st day of October, 2024.
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    Time limits for responses under benami property procedure extended; provisional attachment decision lengthened and statement referral increased, effective October.
    Amendments to section 24 fix procedural timelines: benamidar and beneficial owner must file explanations within three months from the end of the month of notice; the Initiating Officer's period to provisionally attach or decide attachment matters is extended to four months from the end of the month of notice; and the period to prepare and refer the statement of the case to the Adjudicating Authority is increased to one month from the end of the month in which the attachment order is passed.
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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.
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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.
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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.
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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.
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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.
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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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      AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

      3 February, 2020

      Contents
      Rules & Regulations
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      Budget 2020-21 + FINANCE BILL, 2020

      AMENDMENTS

      A.

      Tariff rate changes for Basic Customs Duty [to be effective from 02.02.2020] * [Clause 115 (a) of the Finance Bill, 2020]

      Rate of Duty

      S.No.

      Heading, sub-heading, tariff item

      Commodity

      From

      To

       

       

      Food processing

       

       

      1.

      0802 32 00

      Walnuts, shelled

      30%

      100%

       

       

      Chemicals

       

       

      2.

      3824 99 00

      Other Chemical products and preparations of the chemical or allied industries, not elsewhere specified

      10%

      17.5%

       

       

      Footwear

       

       

      3.

      6401, 6402,

      6403, 6404, 6405

      Footwear

      25%

      35%

      4.

      6406

      Parts of footwear

      15%

      20%

       

       

      Household Items

       

       

      5.

      6911 10, 6911 90 20, 6911 90 90

      Tableware, kitchenware, water filters (of a capacity not exceeding 40 litres) and other household articles, of porcelain of china.

      10%

      20%

      6.

      6912 00 10, 6912 00 20, 6912 00 40, 6912 00 90

      Ceramic tableware, kitchen-ware, clay articles and other household articles

      10%

      20%

      7.

      7013

      Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or Similar purposes (other than that of heading 7010 or 7018)

      10%

      20%

      8.

      7323

      Table kitchen or other household articles and parts thereof, of iron or steel, iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel, including pressure cookers pans utensils, misc articles such as iron & steel wool, polishing pads, gloves etc.

      10%

      20%

      9.

      7418 10

      Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper.

      10%

      20%

      10.

      7615 10

      Table, kitchen or other household articles and parts thereof, of aluminum; pot scourer and scouring or polishing pads, gloves and the like, of aluminum.

      10%

      20%

      11.

      8301

      Padlocks and locks (key, combination or electrically operated) of base metal; Clasps and frames with clasps, incorporating locks of base metals; keys for any of the foregoing articles, of base metals (Other than lock of a kind used for automobiles.)

      10%

      20%

      12.

      9603

      Brooms, brushes, hand operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers; Squeegees (other than roller squeegees).

      10%

      20%

      13.

      9604 00 00

      Hand sieves and hand riddles.

      10%

      20%

      14.

      9615

      Combs, hair-slides and the like, hairpins curling pins, curling grips, hair curlers and the like other than those of heading 8516 and parts thereof.

      10%

      20%

      15.

      9617

      Vacuum flasks and other vacuum vessels, complete with cases; parts thereof other than glass inners.

      10%

      20%

      16.

      8414 51 10

      Table Fans

      10%

      20%

      17.

      8414 51 20

      Ceiling Fans

      10%

      20%

      18.

      8414 51 30

      Pedestal Fans

      10%

      20%

      19.

      8414 59 20

      Blowers, Portable

      10%

      20%

      20.

      8509 40 10

      Food Grinders

      10%

      20%

      21.

      8509 40 90

      Other grinders and Mixer

      10%

      20%

      22.

      8509 80 00

      Other Appliances

      10%

      20%

      23.

      8510 10 00

      Shavers

      10%

      20%

      24.

      8510 20 00

      Hair Clippers

      10%

      20%

      25.

      8510 30 00

      Hair-removing appliances

      10%

      20%

      26.

      8516 10 00

      Water heaters and immersion heaters

      10%

      20%

      27.

      8516 21 00

      Storage heating radiators

      10%

      20%

      28.

      8516 29 00

      Other electrical space heating apparatus

      10%

      20%

      29.

      8516 31 00

      Hair Dryers

      10%

      20%

      30.

      8516 32 00

      Other hair dressing apparatus

      10%

      20%

      31.

      8516 33 00

      Hand Drying apparatus

      10%

      20%

      32.

      8516 40 00

      Electric smoothing irons

      10%

      20%

      33.

      8516 60 00

      Other ovens, cookers, cooking plates, boiling rings, grillers and roasters

      10%

      20%

      34.

      8516 71 00

      Coffee and Tea Makers

      10%

      20%

      35.

      8516 72 00

      Toasters

      10%

      20%

      36.

      8516 79 10

      Electro-thermic fluid heaters

      10%

      20%

      37.

      8516 79 20

      Electrical or electronic devices for repelling insects

      10%

      20%

      38.

      8516 79 90

      Other electro-thermic appliances used for domestic purposes

      10%

      20%

      39.

      8516 80 00

      Electric heating resistors

      10%

      20%

       

       

      Precious Metals

       

       

      40.

      7118

      Coin

      10%

      20%

       

       

      Machinery

       

       

      41.

      8414 51 40

      Railway Carriage fans

      7.5%

      10%

      42.

      8414 51 90

      Other fans with a self-contained electric motor not exceeding 125W

      7.5%

      20%

      43.

      8414 59 10

      Air Circulator

      7.5%

      10%

      44.

      8414 59 30

      Industrial fans blowers and similar blowers

      7.5%

      10%

      45.

      8414 59 9

      Other industrial fans

      7.5%

      10%

      46.

      8414 30 00, 8414 80 11

      Compressor of Refrigerator and Air conditioner

      10%

      12.5%

      47.

      8419 89 10

      Pressure vessels

      7.5%

      10%

      48.

      8418 10 10

      Commercial type combined refrigerator freezers, fitted separate external doors

      7.5%

      15%

      49.

      8418 30 10

      Commercial freezer of chest type, not exceeding 800 litre capacity

      7.5%

      15%

      50.

      8418 30 90

      Other chest type freezers

      10%

      15%

      51.

      8418 40 10

      Electrical freezers of upright type, not exceeding 800 litre capacity

      7.5%

      15%

      52.

      8418 40 90

      Other freezers of upright type, not exceeding 800 litre capacity

      7.5%

      15%

      53.

      8418 50 00

      Refrigerating or freezing display counters, cabinets, Show-cases and the like

      7.5%

      15%

      54.

      8418 61 00

      Heat pumps other than air conditioning machines

      7.5%

      15%

      55.

      8418 69 10

      Ice making machinery

      7.5%

      15%

      56.

      8418 69 20

      Water cooler

      10%

      15%

      57.

      8418 69 30

      Vending machine, other than automatic

      10%

      15%

      58.

      8418 69 40

      Refrigerating equipment/devices used in leather industry

      7.5%

      15%

      59.

      8418 69 50

      Refrigerated farm tanks, industrial ice cream freezer

      7.5%

      15%

      60.

      8418 69 90

      Others (like freezers of capacity 800 litres and more etc.]

      7.5%

      15%

      61.

      8515 (except 8515 90 00)

      Welding and Plasma cutting machines

      7.5%

      15%

       

       

      Other Electronic goods

       

       

      62.

      8504 40 (except 8404 40 21)

      Static Converters

      15%

      20%

      63.

      8504 40 21

      Dip bridge rectifier

      10%

      20%

      64.

      8517 70 10

      Populated, loaded or stuffed printed circuit boards

      10%

      20%

       

       

      Automobile and automobile parts

       

       

      65.

      8421 39 20, 8421 39 90

      Catalytic Convertor

      10%

      15%

       

       

      Furniture Goods

       

       

      66.

      9401

      Seats and parts of seats (other than aircraft seats and their parts)

      20%

      25%

      67.

      9403

      Other Furniture and parts thereof

      20%

      25%

      68.

      9404

      Mattress supports: Articles of bedding and similar furnishing

      20%

      25%

      69.

      9405

      Lamps and lighting fittings including searchlights and spotlights and pads thereof; Illuminated signs, illuminated name plates and the like, having a permanently fixed light source, and parts thereof (except solar lantern and solar lamps).

      20%

      25%

       

       

      Toys

       

       

      70.

      9503

      Tricycles, scooters, pedal-cars and similar wheeled-toys; dolls' carriages; dolls; other toys; reduced-Size (“scale”) models and similar recreational models, working or not; puzzles of all kinds

      20%

      60%

       

       

      Stationary items

       

       

      71.

      8304 00 00

      Filing, cabinets. card-index cabinets, paper-trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment of base metal, Other than office furniture of heading 9403

      10%

      20%

      72.

      8305

      Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal

      10%

      20%

      73.

      8310

      Sign-plates, name-plates, address-plates and similar plates, numbers, letters and other symbols, of base metal, excluding those of heading 9405

      10%

      20%

       

       

      Miscellaneous

       

       

      74.

      6702

      Artificial Flowers

      10%

      20%

      75.

      7018 10 20

      Glass Beads

      10%

      20%

      76.

      8306

      Bells, gongs, statuettes, trophies and like, non-electric of base metal; statuettes and other ornaments of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal.

      10%

      20%

      B.

      New entries added to the First Schedule [to be effective from 02.02.2020] * [Clause 115(b) of the Finance Bill, 2020]

      S. No

      Tariff Item

      Description

      Tariff Rate

      Effective rate

      1.

      8414 51 50

      Wall fans

      20%

      20%

      2.

      8529 90 30

      Open cell for television set

      15%

      0%

      3.

      8541 40 11

      Solar cells, not assembled

      20%

      0%

      4.

      8541 40 12

      Solar cells, assembled in modules or made up in panels

      20%

      0%

      *Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

       


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      Budget 2020-21 + FINANCE BILL, 2020

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