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    Cash transaction penalty: acceptance of prohibited loans or deposits triggers penalty equal to amount received under the new clause.
    Clause 450 imposes a penalty equal to the amount of any loan, deposit or specified sum taken or accepted in contravention of the substantive prohibition, centralizes authority to impose that penalty with the Assessing Officer, and leaves key interpretive and procedural questions-such as the definition of "specified sum", the availability of a reasonable cause exception, and limitation and hearing procedures-to be clarified elsewhere in the Bill or by administrative guidance.
    Act RulesBills
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    Penalty for failure to collect tax at source: Assessing Officer may impose penalty equal to uncollected tax, discretion noted.
    Clause 449 provides that any person required under Chapter XIX-B who fails to collect the whole or part of tax may be liable to a penalty equal to the amount of tax not collected, with the Assessing Officer empowered to impose that penalty; the clause covers total and partial failures, fixes the penalty quantum as equal to the uncollected tax, and does not expressly provide a reasonable cause exception.
    Act RulesBills
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    Penalty for failure to deduct tax at source: equal to unpaid tax, imposed at Assessing Officer's discretion.
    Clause 448 penalises failure to deduct, pay, or ensure payment of tax at source under Chapter XIX-B and specified notes, imposing a penalty equal to the tax unpaid and vesting discretion to impose that penalty in the Assessing Officer; the clause covers partial failures and obligations to ensure payment but is silent on an explicit reasonable cause defence.
    Act RulesBills
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    Failure to furnish accountant's report under section 172 may attract fixed statutory penalty; procedural safeguards need clarification.
    Clause 447 authorises the Assessing Officer to impose a fixed penalty of one lakh rupees for failure to furnish an accountant's report as required by section 172; the provision mirrors Section 271BA in structure and intent, emphasising a uniform fixed penalty to enforce documentary compliance, while raising issues about the scope of section 172, the absence of an explicit reasonable cause exception, and procedural safeguards such as show cause notice and opportunity to be heard.
    Act RulesBills
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    Audit compliance penalty: failure to obtain or file mandated audit reports may attract a capped percentage-based sanction.
    Clause 446 penalizes failure to obtain a mandatory audit or to furnish the audit report under s.63 by authorizing the Assessing Officer to impose a penalty equal to the lesser of a percentage of total sales, turnover or gross receipts for the relevant tax year(s) or a fixed monetary cap, thereby targeting both non-audit and non-filing conduct and centralizing enforcement discretion under a proportional, capped sanction.
    Act RulesBills
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    Penalty for diversion of charitable funds: escalating sanctions for benefits to related persons under the new income tax framework.
    Clause 445 links penalties to the charging of "specified income" under section 337 where a registered non-profit applies income for the benefit of a related person. It covers direct and indirect benefits, vests discretion in the Assessing Officer to impose a monetary penalty during proceedings, prescribes an equal-amount penalty for the first violation and a doubled penalty for subsequent violations, and does not require proof of mens rea.
    Act RulesBills
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    Penalty for false accounting entries: false or omitted entries made to evade tax attract a penalty equal to the entry amount.
    Penalty for false or omitted accounting entries applies where entries are material to computation of total income and made with intent to evade tax; penalty equals the aggregate amount of the false or omitted entry, extends to anyone who causes such entries, and covers use or intention to use forged documents, invoices without actual supply/receipt, and invoices involving non existent persons, with Assessing Officer and specified appellate officers empowered to impose the sanction.
    Act RulesBills
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    Penalty for undisclosed income: fixed tax-based sanction added to assessed tax for unexplained income, with limited exceptions.
    Clause 443 authorises tax officers and appellate commissioners to impose a fixed additional penalty on tax computed in respect of income determined from specified unexplained sources, while exempting amounts voluntarily disclosed and taxed within the relevant year, and barring a duplicate penalty under an alternate penalty provision; procedural safeguards in designated procedural sections apply to the imposition and appeal of the penalty.
    Act RulesBills
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    Documentation penalties: new clause preserves ad valorem and flat penalties, reinforcing strict transfer pricing compliance for cross border transactions.
    Clause 442 establishes penalties for failures to maintain, report, or furnish accurate documentation for international transactions and specified domestic transactions, comprising an ad valorem penalty imposed by the Assessing Officer or Commissioner (Appeals) for non maintenance, non reporting or incorrect information, and a prescribed authority's power to levy a flat monetary penalty for failure to furnish required information; the provision largely mirrors Section 271AA but omits an explicit "without prejudice" clause and does not address reasonable cause or proportionality concerns.
    Act RulesBills
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    Record keeping obligation triggers fixed penalty for non maintenance or non retention of prescribed tax records, raising proportionality concerns.
    Clause 441 imposes a fixed penalty for failure to keep, maintain, or retain prescribed books of account and documents as required by the statutory reference provision, and vests authority to impose the penalty in the Assessing Officer and appellate officers. The clause applies an objective standard of liability, omits an explicit savings clause preserving other penalty provisions, and contains no express exception for reasonable cause, raising issues of cumulative penalties and proportionality.
    Act RulesBills
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    Immunity from penalty: mechanism to obtain protection from penalty and prosecution when tax is paid and no appeal is filed.
    Clause 440 permits an assessee to apply for immunity from penalty and prosecution where tax and interest under the assessment/reassessment order are paid within the notice period and no appeal is filed; the application must be made within one month in prescribed form, the AO must decide within three months after giving opportunity of being heard, immunity is granted only after the appeal period expires and excludes cases of aggravated defaults, and an order on immunity is final and bars appeal or revision if accepted.
    Act RulesBills
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    Penalty for under-reporting: preserves formula-based computation and differential rates for misreporting, and procedural safeguards.
    Clause 439 establishes a formula-based penalty framework empowering a defined Competent Authority to impose penalties for seven specified scenarios of under-reporting, prescribes quantified computation methods for first assessments, reassessments and deemed income, preserves exceptions for bona fide explanations and documented transfer pricing adjustments, requires written orders and bars double penalisation, and differentiates penalties by imposing a higher sanction for misreporting defined by a specified list of misrepresentation and suppression acts.
    Act RulesBills
    Show AI Summary
    Mode of payment restrictions for property linked receipts expanded to include any monetary receipt related to proposed transfers.
    Clause 189 of the Income Tax Bill, 2025 defines "banking company", certain rural finance institutions, "specified sum", and "specified advance" to frame non cash payment rules for receipts and repayments linked to immovable property. It mirrors the Explanation to Section 269T in several respects-notably the definition of "specified advance"-but adds an explicit "specified sum" to capture any monetary receipt related to a proposed property transfer whether or not the transfer occurs, thereby potentially broadening regulatory coverage and creating interpretative issues where payments overlap the two terms.
    Act RulesBills
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    Mode of repayment restrictions: non cash repayment mandated for covered loans and advances to ensure traceability and compliance.
    Clause 188 mandates non cash repayment of loans, deposits and specified advances by account payee cheque, bank draft, electronic clearing or other prescribed electronic modes when the amount or the aggregate held by the person equals or exceeds twenty thousand rupees, with a higher threshold of two lakh rupees for primary agricultural credit societies and related rural banks. It exempts repayments to Government and regulated banking or notified entities, allows intra branch crediting by banks, broadly defines "loan or deposit," covers advances related to immovable property, and emphasizes aggregation to prevent splitting transactions.
    Act RulesBills
    Show AI Summary
    Digital payment mandate requires businesses to provide prescribed electronic modes, promoting traceability and reducing cash transactions.
    Clause 187 mandates that every person carrying on business whose sales, turnover, or gross receipts exceed the prescribed monetary threshold in the immediately preceding tax year shall provide facilities for accepting payment through prescribed electronic modes, in addition to any other electronic modes offered; rule-making will specify the required modes, and compliance carries operational, record-keeping and penal implications while raising interpretive issues around prescription, group aggregation, and regulatory harmonization.
    Act RulesBills
    Show AI Summary
    Restriction on high value cash transactions: mandatory use of prescribed banking or electronic modes to enhance traceability and compliance.
    Clause 186 prohibits receipt of cash at or above the specified monetary threshold except through account payee cheque, bank draft, electronic clearing, or other prescribed electronic modes, applying the ban to aggregated daily receipts from the same person, single transactions, and transactions linked to a single event or occasion; exemptions include government and specified banking entities and further classes as notified by the Central Government, while interpretive ambiguities and delegated rulemaking on permissible modes may require administrative clarification.
    Act RulesBills
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    Cash transaction restriction: acceptance of loans, deposits and advances must be made only through traceable banking or electronic modes.
    Clause 185 prohibits accepting loans, deposits or specified sums in cash when the current transaction, the unpaid balance of prior transactions with the same person, or their aggregate reaches the prescribed threshold, and permits receipt only by account-payee cheque, account-payee bank draft, electronic clearing through a bank account or other prescribed electronic modes; exceptions cover the Government, specified banking and statutory entities, notified bodies, a rural higher threshold for primary agricultural credit societies and a narrow agricultural income exception.
    Act RulesBills
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    Definition of High Court clarifies appellate forum for States and Union Territories in tax law, reducing jurisdictional ambiguity.
    Clause 374 of the Income Tax Bill, 2025, provides a comprehensive, enumerated definition of "High Court" by designating the specific High Court applicable to each State and Union Territory, updating nomenclature, reflecting post reorganization realities (including Jammu & Kashmir and Ladakh), and replacing reliance on piecemeal adaptation orders; this consolidation reduces jurisdictional uncertainty, aids administrative and judicial efficiency, and highlights the need for legislative updates or transitional provisions if future territorial changes occur.
    Act RulesBills
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    Monetary limits on tax appeals: Board may set filing thresholds; non filing does not amount to departmental acquiescence.
    Clause 373 authorises the Board to fix monetary limits and other criteria for filing appeals by income tax authorities, permits the Board to revise those limits, and provides that non filing of an appeal in one case does not preclude filing in other years or against other assessees. The clause bars assessees from claiming departmental acquiescence due to non filing and directs tribunals and courts to have regard to the Board's instructions and the circumstances of filing or non filing while leaving the weight of those instructions to judicial discretion.
    Act RulesBills
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    Exclusion of time to obtain copy suspends limitation for appeals and applications when copy not provided, subject to diligence.
    Clause 372 excludes the day of service and, where a copy was not provided with the notice, the time required to obtain that copy from computation of limitation for appeals and applications; the exclusion is subject to the assessee's reasonable diligence and requires documentary proof of application and receipt, with electronic service and portal access raising specific interpretive issues.

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      PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

      2 February, 2022

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      IV. PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

      A. Review of concessional rates of BCD prescribed to Capital Goods and Project Imports vide notification No. 50/2017 – Customs dated 30.6.2017:

      The Customs duty rate structure on capital goods and project imports has been comprehensively reviewed and exemption on capital goods/ project imports are being phased out in a gradual manner. However, certain exemptions on capital goods would continue. Accordingly, the BCD exemption hitherto available on certain goods are being withdrawn by omitting the following entries of notification No. 50/2017Customs dated 30.6.2017, from the dates mentioned against each entry.

      S.No.

      S. No. of notification No. 50/2017

      Description/ HS Code

      (1)

      (2)

      (3)

      Textile Sector

      1.

      399 [exemption is being phased out as per details in column (3)]

      Goods (other than old and used) for use in man-made or synthetic fiber or yarn industry (84 or any other Chapter)

      1. Concessional BCD rate to be withdrawn for Spindles, Yarn guides, Ballon Control Rings and Travellers [w.e.f 1.4.2022]

      2. Concessional BCD rate to be withdrawn for the remaining items such as Machinery for continuous polymerization plant, Machinery for synthetic fibre plant, Machinery for synthetic filament yarn plant, Machinery for Regular/HWM Viscose Staple Fibre Plant, Machinery for Lyocell Fiber Plant, in this entry [w.e.f 1.4.2023]

      2.

      400 [w.e.f 1.4.2023]

      Goods such as Machinery for garment sector, Machinery for manufacture of technical textiles, Woollen machinery items, Machinery for manufacture of non-wovens textiles, Machinery for manufacture of denim fabrics, Machinery for use with shuttleless looms etc. as specified in List 12 to the notification No. 50/2017-Customs, and parts for their manufacture for use in textiles industry

      3.

      432 [exemption is being phased out as per details in column (3)]

      Goods (other than old and used) for use in the textile industry

      1. Concessional BCD rate to be withdrawn for item no. 1, List 25: Effluent treatment unit with biopaq reactor, activate sludge process, activated carbon, ultrafiltration ozonisation facilities [w.e.f 1.4.2022]

      2. Concessional BCD rate to be withdrawn for item no. 3, List 25: Effluent treatment unit with automatic sensing devices, automatic controlled chemical dosing, dissolved air floatation (DAF), reverse osmosis, sludge dewatering, decanters, ultrafilters, vacuum filters to deliver water for reuse [w.e.f 1.4.2022]

      3. Concessional BCD rate to be withdrawn for the remaining items such as singeing machines, yarn drying machines, knitting machines etc., in this entry. [w.e.f 1.4.2023]

      4.

      433 [w.e.f 1.4.2022]

      Machinery or equipment for effluent treatment plant for handloom sector or handicraft sector

      5.

      434 [w.e.f 1.4.2023]

      Machinery for use in the silk textile industry

      6.

      460 [w.e.f 1.4.2023]

      Shuttle less looms and parts for their manufacture for use in the textile industry

      7.

      461 [exemption is being phased out as per details in column (3)]

      Machineries such as Knitting, weaving machines

      1. Concessional BCD rate to be withdrawn for Card Clothing (HS Code 8448 31 00) used in textile machinery i.e., Carding Machine [w.e.f 1.4.2022]

      2. Concessional BCD rate to be withdrawn for the remaining items, such as machines for extruding, drawing, texturing, textiles machines, machines for preparing textile fibers, textile spinning machines, textile twisting machines, textile winding machines, weaving machines, knitting machines, auxiliary machines etc., in entry. [w.e.f 1.4.2023]

      Power Sector

      8.

      397 [exemption is being phased out as per details in column (3)]

      Goods specified in List 10 required for use in high voltage power transmission project

      1. Concessional BCD rate to be withdrawn for 13 items [List 10 in the notification] that include Transformers, Reactor, Circuit Breaker etc. [w.e.f 1.4.2022]

      2. Concessional BCD rate to be withdrawn for the remaining items such as High Voltage DC Divider and CT, High Voltage DC Reactor, High TRV Circuit Breaker for High Voltage DC application, Optical Current Transformer etc. in this entry. [w.e.f 1.4.2023]

      9.

      405 [exemption is being phased out as per details in column (3)]

      Wind operated electricity generators, its parts and raw material, thereof

      1. Concessional BCD rate to be withdrawn for item No. (1) & (3) of this entry that include wind operated electricity generators (WOEG) upto 30 kW, wind operated battery chargers upto 30kW and blades for the rotors of WOEG [w.e.f 1.4.2022]

      2. Concessional BCD rate to be withdrawn for the remaining items, such as parts of wind operated electricity generators including special bearings, gear box, yaw components, wind turbine controllers etc. and parts thereof and parts of blades, raw materials of blades etc. in this entry. [w.e.f 1.4.2023]

      10.

      406 [w.e.f 1.4.2023]

      Permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity generators

      11.

      413 [w.e.f 1.4.2022]

      All goods, for renovation or modernization of a power generation plant (other than captive power generation plant)

      12.

      414 [w.e.f 1.4.2022]

      All goods, imported by a manufacturer-supplier for the manufacture and supply of machinery and equipment to a power generation plant (other than captive power generation plant)

      Petroleum Sector

      13.

      403 [w.e.f 1.4.2023]

      Parts and raw materials for manufacture of goods to be supplied in connection with the purposes of off- shore oil exploration or exploitation

      14.

      409 [exemption is being phased out as per details in column (3)]

      Goods specified in List 13 required for setting up crude petroleum refinery

      1. Concessional BCD rate to be withdrawn for 11 items of List 13 that include utility systems, water treatment systems, air handling systems, boilers etc. [w.e.f 1.4.2022]

      2. Concessional BCD rate to be withdrawn for the remaining items such as all types of Refinery Process Units, All types of Hydrogen Generation, Recovery and Purification Plants, All types of Process Subsystems, All types of Effluent Solids/Liquids/Gaseous Processing etc. in this S. No. [w.e.f 1.4.2023]

      15.

      410 [w.e.f 1.4.2022]

      Kits and its parts required for the conversion of motor- spirit or diesel driven vehicles into Compressed Natural Gas driven or Propane driven or Liquefied Petroleum Gas driven vehicles

      Leather Sector

      16.

      396 [w.e.f 1.4.2022]

      Machinery or equipment for effluent treatment plant for leather industry

      17.

      439 [w.e.f 1.4.2023]

      292 goods specified in List 27 to notification No. 50/2017Customs, designed for use in the leather industry or the footwear industry, like Air blast dust removing machine, Automatic Drying machine etc.

      Food Packaging Sector

      18.

      455 [w.e.f 1.4.2023]

      Machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers

      19.

      458 [w.e.f 1.4.2023]

      Machinery for the industrial preparation or manufacture of food or drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils

      Other Sectors

      20.

      393 [w.e.f 1.4.2023]

      (i) Cricket bat and hockey stick splice joining machine

      (ii) Rugby ball or soccer ball stitching Machine

      (iii) Moulds for soccer ball, basketball and volley ball

      21.

      394 [w.e.f 1.4.2023]

      Bacteria removing clarifier

      22.

      395 [w.e.f 1.4.2023]

      Marine seawater pumps with fibre impellers and Automatic fish/prawn feeder

      23.

      407 [w.e.f 1.4.2023]

      Goods required for, -

      (a) the substitution of ozone depleting substances (ODS);

      (b) the setting up of new capacity with non – ODS technology.

      24.

      408 [w.e.f 1.4.2023]

      Goods required for renovation, modernization or maintenance of a fertilizer plant

      25.

      436 [w.e.f 1.4.2023]

      Spares, supplied with outboard motors for maintenance of such outboard motors

      26.

      440 [w.e.f 1.4.2023]

      Fogging machines imported by a Municipal Committee, District Board etc.

      27.

      443 [w.e.f 2.2.2022]

      Goods to be imported by or on behalf of security printing and minting corporation of India limited (SPMCIL) that include Plant or machinery or equipment, related spares and consumables for printing of banknotes, etc.

      28.

      444 [w.e.f 1.4.2023]

      Geothermal ground source heat pumps

      29.

      445 [w.e.f 1.4.2023]

      Goods for making of gem and jewellery –

      (1) Automatic Chain Making machine,

      (2) chain twisting machine,

      (3) Spiral making machine,

      (4) Rolling machine (combined Profile Groovers/Strip Making)

      (5) Automatic Investing Machine/casting Machine

      30.

      448 [w.e.f 1.4.2023]

      Specific agricultural implements and parts used for their manufacture that include paddy transplanter, sugarcane harvester, cotton picker etc.

      31.

      469 [w.e.f 1.4.2023]

      Atmospheric water generator

      32.

      470 [w.e.f 1.4.2023]

      Machinery for making wooden fiberboards

      Project Imports

      33.

      597, 598, 599, 600, 601, 602, 603, 604, 605, 606

      a. Project Imports for project such as

      (i) Power Projects, including Nuclear and Solar Power

      (ii) Coal Projects

      (iii) Gas Projects

      (iv) Iron Ore Projects

      (v) Water Supply Projects

      (vi) Mandi and Warehousing Projects for Food Grains

      (vii) Other Projects

      b. New projects registered after 30th September 2022 under project imports will attract 7.5% BCD rate with change in BCD Tariff rate to 7.5%.

      c. Existing projects registered till 30th September 2022 under project imports will be grandfathered till 30th September 2023 attracting old BCD rates of 0%/2.5%/5% as applicable.

      d. After 30th September 2023, all projects registered under project imports will attract 7.5% BCD rate.

      B. Review of concessional rates of BCD prescribed in notification No. 50/2017 – customs dated 30.06.2017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting some of the entries of notification No. 50/2017Customs dated 30.6.2017 as shown below. Additionally, modifications have also been made with respect to some of the entries of notification No. 50/2017-Customs dated 30.6.2017, wherein end-dates have been prescribed, and partial changes has been made to the exemptions. These changes are detailed below.

      S. No.

      S. No. of notification No. 50/ 2017

      Description

       

      Entries to be immediately omitted

       

      1.

      4

      Atlantic Salmon

       

      2.

      26

      Hazelnuts or filberts, shelled and in-shell

       

      3.

      28

      Other nuts, shelled and in-shell

       

      4.

      33

      Durians, other fresh fruits like Pomegranates, Tamarind, Sapota, Custard- apple, Bore, Lichi, etc. other than currants and gooseberries

       

      5.

      50

      Seed Lac

       

      6.

      52

      Dammar Batu

       

      7.

      82

      Crude glycerin for use in the manufacture of soaps

       

      8.

      96

      Tapioca and substitutes therefor prepared from starch

       

      9.

      122

      Silica Sands

       

      10.

      124

      Marble, travertine, granite other than rough marble and travertine blocks and marble slabs

       

      11.

      151

      Kerosene imported by the Indian IOCL. BPCL, HPCL and IBP Company Limited for ultimate sale through the Public Distribution System

       

      12.

      159

      Bio-based asphalt sealer and preservation agent; Millings remover and crack filler; Asphalt remover and corrosion protectant; Sprayer system for bio-based Asphalt and condition no. 14

       

      13.

      171

      The goods specified in List 7, for the manufacture of laser and laser-based instrumentation and condition No. 17

       

      14.

      173

      Goods used in manufacture of telecommunication grade impregnated glass reinforcement roving, namely: E-glass roving/ yarn, liquid absorbent polymer, polyurethane polymer and vinyl polymer

       

      15.

      175

      Common Salt (including Rock salt, Sea salt and Table salt)

       

      16.

      187

      Raw materials intermediates and consumables supplied by UNICEF for manufacture of DTP vaccines and condition No. 19

       

      17.

      233

      Myrobalan fruit extract

       

      18.

      234

      Triband Phosphor

       

      19.

      235

      Ceramic Colours

       

      20.

      236

      Glass frit and other glass, in the form of powder, granules or flakes

       

      21.

      241

      Vinyl Polyethylene Glycol for use in manufacture of Poly Carboxylate Ether

       

      22.

      242

      The following goods for use in the manufacture of Plasma Volume Expanders, namely: Hydroxyethyl starch and Dextran

       

      23.

      277

      Mica glass tape for use in manufacture of insulated wire and cables

       

      24.

      293

      Grape guard paper (paper used for packaging grapes)

       

      25.

      324

      Monofilament long line system for tuna fishing and condition No. 34

       

      26.

      327

      Samples of hand knotted carpets and condition No. 36

       

      27.

      328

      Polyester Tyre Cord Fabric

       

      28.

      332

      Parts of Umbrella

       

      29.

      216 & 481

      Artificial Kidney (Dialyzer)

       

      30.

      216A & 481A

      Parts for manufacture of Artificial Kidney

       

      31.

      402

      Goods, for use in the manufacture of static converters of automatic data processing machines: PCBA, Transformer, Battery and Copper enameled wires

       

      32.

      424

      Listed goods for paging goods and its parts

       

      33.

      425

      Listed goods for Public Mobile Radio Trunked Service (PMRTS) and its parts

       

      34.

      431

      Goods used for Research and development in Agro-Chemical Sector Unit

       

      35.

      449

      Goods for use in the manufacture of refrigerator compressor namely: -

      (i) C-Block compressor;

      (ii) Crankshafts.

       

      36.

      450

      Over Load Protector (OLP) and positive thermal coefficient for use in the manufacture of refrigerator compressor

       

      37.

      501

      Recorded magnetic tapes and floppy diskettes, imported by the University Grants Commission for use in Computers

       

      38.

      588

      Synthetic tracks and equipment to lay synthetic tracks.

       

      39.

      589

      (i) Asphalt resurfacer;

      (ii) Acrylic resurfacer;

      (iii) Cushion coat;

      (iv) Acrylic colour concentrate;

      (v) Acrylic marking paint; and

      (vi) Polytan in powder or granule form

       

      40.

      590

      Requisites for games and sports

       

      Entries where End-dates are prescribed

       

      41.

      289

      Wood in chips for use in manufacture of paper, paperboard & newsprint [End-date of 31.03.2023 is prescribed]

       

      42.

      430

      Goods used for Research and Development purpose in pharmaceutical and bio- technology sector. [End-date of 31.03.2023 is prescribed]

       

      43.

      479

      Mono or Bi polar Membrane electrolysers and parts; Membrane and parts; Parts, other than those for caustic soda unit or caustic potash unit [End-date of 31.03.2024 is prescribed]

       

      44.

      594

      Snow-skis and other snow-ski Equipment; Water-skis, surfboards, sailboards and other water-sport equipment [End-date of 31.03.2023 is prescribed]

       

      Section 25 (4A) of the Customs Act, inserted vide Finance Act, 2021, prescribes that where any exemption is granted subject to any condition under sub section (1), such exemption shall, unless otherwise specified or varied or rescinded, be valid up to 31st day of March falling immediately after two years from the date of such grant or variation. Accordingly, conditional exemptions will have validity in terms of this subsection. Therefore, entry being impacted on account of this clause have been identified and an explanation has been inserted in the notification No. 50 /2017-Customs.

      [“Explanation: Under the provisions of subsection (4A) of section 25 of the Customs Act, 1962, it is hereby specified that the conditional exemptions granted under the S. Nos. of the Table to the notification, mentioned under column (2) of the Table below, for which period of validity is not specified otherwise, shall unless varied or rescinded, be valid up to the date mentioned in the corresponding entry in column (3) of the said Table. ….” ]

       

      The following entries, unless varied, will have validity up to 31.03.2023.

       

      45.

      16, 90, 133, 139, 150, 155, 164, 165, 168, 183, 184, 188, 204, 213, 237, 238, 253, 254, 255, 258, 259, 260, 261, 269, 271, 276, 277A, 279, 280, 325, 333, 334, 339, 340, 341, 341A, 353, 364A, 374, 375, 378, 379, 380, 381, 387, 392, 415, 415A, 416, 417, 418, 419, 420, 421, 426, 428, 429, 441, 462, 463, 464, 471, 472, 475, 478, 482, 489B, 495, 497, 504, 509, 510, 511, 512, 512A, 516, 519, 534, 535, 535A, 536, 538, 540, 542, 543, 544, 546, 549, 550, 559, 565, 566, 567, 568, 570, 575, 577, 578A, 579, 580, 581, 583, 593, 612

       

      The following entries [having been reviewed in this exercise done this year], unless varied, will have validity up to 31.03.2024.

       

      46.

      17, 80A, 104, 172, 191, 257, 257A, 257B, 257C, 264A, 290, 292, 293A, 296A, 326, 329, 345A, 354, 355, 356, 357, 422, 423, 442, 446, 451, 465, 517, 591

       

      Entries omitted being in the nature of technical change

       

      47.

      31

      Dried Grapes (Raisins, Other)

       

      48.

      161

      Electrical Energy originating from Nepal and Bhutan

       

      49.

      192

      Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio- diesels

       

      50.

      215

      The Blood group sera, namely: -Anti C., anti E., anti c., anti e., anti M., anti N., anti Le., anti-Pl., anti S., antihuman globulin sera, anti F., anti kell, anti cellane, anti Jka., and anti I

       

      51.

      224

      Potassium Nitrate, in a form indicative of its use for manurial purpose

       

      52.

      248

      Dipping oil, Paclobutrazol (Cultar)

       

      53.

      466

      Parts/ sub-parts, components or accessories for use in the manufacture of tablet computer.

       

      54.

      485

      Deflection components for use in colour monitors for computers or for use in PCBs of colour monitors for computers

      55.

      496

      Stepper Motors for use in the manufacture of goods falling under heading 8471

      56.

      505

      Parts of Set-top box for use in its manufacture

      57.

      506

      Parts/sub-parts, components for use in manufacture of broadband modem Other than PCBA, charger.

      58.

      507

      Parts/ sub-parts, components and accessories for use in manufacture of routers other than PCBA, charger.

      59.

      508

      Parts/ sub-parts, components and accessories for use in manufacture of set top boxes for gaining access to internet other than PCBA, charger.

      Entries with partial changes

      60.

      15

      Frozen Semen and Frozen semen equipment

      [Exemption to continue only for bovine semen]

      61.

      104

      List of specified goods used in the processing of sea-foods

      [Exemption to continue for selected items and accordingly, exemption has been continued for 16 items and 4 new items has been added to the list]

      62.

      132

      List A items:

      1. Aluminous cement

      2. Silicon metal (99%)

      3. Micro/fumed silica

      4. Brown fused alumina

      5. Sintered/tabular alumina

      6. Fused zirconia

      7. Sodium hexameta phosphate

      8. Silicon carbide

      9. Boron carbide

      10. Reactive alumina

      11. Fused silica; and List B items: Phenolic resin

      [Exemption to continue for list A with end-date of 31.03.2023 and discontinue for list B immediately]

      63.

      166

      (A) Drugs, medicines, diagnostic kits or equipment specified in List 3.

      (B) Bulk drugs used in the manufacture of drugs or medicines at (A)

      [Exemptions under List-3 is being rationalized]

      Note: Items included in List 3 under S. No. 166 provides for a conditional concessional rate of 5% on the imports of drugs, medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such drugs or medicines. The items in the said list has been reviewed. Accordingly, 35 items have been removed from the List and 1 item [influenza vaccine] in the List would be omitted after 18 months. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

      64.

      167

      (A) Lifesaving drugs/medicines including their salts and esters and diagnostic test kits specified in List 4.

      (B) Bulk drugs used in the manufacture of drugs or medicines at (A).

      [Exemptions under List-4 is being rationalized in the manner as detailed in the Note at S. No. 63 above; Entry at S. No. 167 (C) has been omitted as a similar exemption is available under S. No. 607 (b) of notification No. 50/2017 – Customs]

      Note: Items included in List 4 under S. No. 167 provides for customs duty exemption on the imports of Lifesaving drugs/medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such goods. The items in the said list has been reviewed. Accordingly, 3 items in List 4 [Diagnostic agent for detection of Hepatitis B antigen, Diagnostic kits for detection of HIV antibodies, Enzyme Linked Immuno absorbent Assay kits (ELISA kits)] have been transferred to List 3, 2 bulk drugs [bulk drug substance for poliomyelitis vaccine (inactivated and live) and Monocomponent Insulin] that are currently included in List 4 would be transferred to List 3 after 2-3 years, and 36 items from List 4 have been omitted. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

      65.

      404

      Goods required in connection with Petroleum operations.

      [Rationalization of the exemption provided for goods used in petroleum operations as specified in List 33 under S. No. 404, and simplification of the associated condition no. 48 for availing such exemption and disposal of such goods]

      Note: A definition has been provided for a licensee, lessee, contractor or sub-contractor for the purpose of this entry. Also, the requirement of producing a certificate from Directorate General of Hydrocarbons (DGH) for import or each transaction under this entry has been dispensed with. Further, the list of items falling under List 33 has been pruned down and have been made more specific by prescribing the concerned HS Codes.

      66.

      513

      Parts or components for use in manufacture of populated printed circuit board of various telecom and electronics related products, and its sub-parts.

      [Exemption to continue for Digital Video Recorder(DVR)/Network Video Recorder(NVR) falling under tariff item 8521 90 90; CCTV Camera/IP Camera falling under tariff item 8525 20 80; Reception apparatus for television but not designed to incorporate a video display falling under tariff item 85287100]

      C. Customs duty exemptions which have been granted through certain other standalone notifications, have also been reviewed:

      S.No.

      Notification No.

      Amendment

      I. The following notifications have been modified in the manner as detailed below:

      1.

      39/1996-Customs dated 23.07.1996

      This notification prescribes concessional rate of customs duty on items relating to Defence and internal security forces. Upon review of exemption, entries under S. Nos. 14, 15, 17, 18, 19, 24, 29, 30, 31, 31A, 31B, 32, 33, 35, 36, 38, 39, 40, 41, 42, 43 have been omitted.

      [Sunset date of 31.03.2023 has been prescribed for the remaining entries as per Section 25(4A) of the Customs Act, 1962]

      2.

      25/1999-Customs dated 28.02.1999

      This notification prescribes concessional rate of customs duty on items relating to import of raw materials and parts for use in manufacture of electronic items.

      Upon review of exemption, it has been pruned to remove redundant exemption entries and exemptions related to obsolete items and accordingly, more than 125 entries have been omitted.

      [Sunset date of 31.03.2024 been applied for the remaining entries]

      3.

      25/2002-Customs dated 01.03.2002

      This notification prescribes concessional rate of customs duty on import of items relating to capital goods used in manufacture of electronic items. [Sunset date of 31.03.2024 been applied for the all entries]

      4.

      27/2011-Customs dated 01.03.2011

      This notification prescribes concessional rate of customs duty on export of goods. Upon review of the exemption, the entries under S. Nos. 20B, 63 and 64 have been omitted as these entries have become obsolete.

      5.

      37/2017-Customs dated 30.06.2017

      This notification prescribes concessional rate of customs duty on import of items relating to internal security agencies. Upon review of exemption entries, the entries under S. Nos. 6 and 7 have been omitted as their validity has expired.

      II. The following obsolete/expired notifications have been rescinded as detailed below:

      S.No.

      Notification No.

      Description

      1.

      190/1978-Customs dated 22.09.1978

      These notification provides for additional duty of customs on import of transformer oil equivalent to such portion of the excise duty leviable on the raw material commonly known as transformer oil base stock or transformer oil feedstock.

      2.

      191/1978-Customs dated 22.09.1978

      3.

      10/1995-Customs dated 7.3.1995

      This notification prescribes concessional rate of customs duty on import inputs imported for manufacturing of Iron & Steel intermediates.

      4.

      26/1999-Customs dated 28.2.1999

      This notification prescribes concessional rate of basic customs duty on import of kerosene imported by a manufacturer of linear alkyl benzene for extracting N-Paraffin.

      5.

      27/2004-Customs dated 23.01.2004

      This notification prescribes concessional rate of customs duty on import of specified goods imported for use in manufacture of certain chemicals.

      6.

      14/2006-Customs dated 01.03.2006

      This notification prescribes concessional rate of customs duty on import of specified varieties of woven fabrics falling under Chapters 52, 54, 55 and 58.

      The entries of this notification have been merged in notification No. 82/2017-Customs.

      7.

      48/2006-Customs dated 26.05.2006

      This notification prescribes concessional rate of customs duty on import of woven fabrics of carded/combed wool or fine animal hair. The entries of this notification have been merged in notification No. 82/2017-Customs.

      8.

      90/2007-Customs dated 26.07.2007

      This notification prescribes concessional rate of additional duty of customs on import of items related to Electronics and Information Technology goods.

      9.

      08/2011-Customs dated 14.02.2011

      This notification prescribes exemption from the whole of the additional duty of customs, leviable thereon under subsection (1) of section 3 of the said Customs Tariff Act, on jute products imported from Bangladesh or Nepal.

      The notification has been rescinded as post introduction of GST, the jute products attract integrated tax on imports.

      10.

      24/2011-Customs dated 1.03.2011

      This notification exempts Basic Customs Duty on copper concentrate as is equivalent to the duty of customs leviable on the value of Gold and silver contained in such copper concentrate.

      11.

      49/2013-Customs dated 29.11.2013

      This notification prescribed concessional rate of customs duty on import of Anti-Tuberculosis Drugs, Diagnostics and Equipment and had lapsed on 1st April, 2016.

      12.

      23/2014-Customs dated 11.07.2014

      This notification prescribed concessional rate of customs duty on import of Drugs & equipment imported for National AIDS Control Programme and had lapsed on 1st April, 2015.

      13.

      37/2015-Customs dated 10.06.2015

      This notification prescribed concessional rate of customs duty on import of Anti-Retroviral Drugs (ARV Drugs) and had lapsed on 1st April, 2016.

      14.

      11/2016-Customs dated 01.03.2016

      This notification prescribes concessional rate of customs duty on import of software recorded media.

      15.

      20/2020-Customs dated 9.04.2020

      This notification prescribes concessional rate of customs duty on import of Face Masks, Surgical Masks, Ventilators, COVID-19 Testing Kits, etc. and had lapsed on 30th September, 2020.

      16.

      40/2020-Customs dated 28.10.2020

      This notification prescribes concessional rate of customs duty on import of Potatoes under Tariff Rate Quota (TRQ) and had lapsed on 31st January, 2021.

      D. Inclusion of End-date as per Section 25(4A) of the Customs Act, 1962, in certain stand-alone notifications:

      S.No.

      Notification No./ Entry of the notification No.

      Amendment

      1.

      146/94-Customs dated 13.07.1994

      This notification prescribes concessional rate of customs duty on specified sports goods, equipment and requisites imported by National Sports Federation

      [All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

      2.

      147/94-Customs dated 13.07.1994

      This notification prescribes concessional rate of customs duty on exemption to Fire arms and ammunition for renowned shot

      [All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

      3.

      50/96-Customs dated 23.07.1996

      This notification prescribes concessional rate of customs duty on equipment, instrument, raw materials, components, pilot plants, computer software for R&D project

      [All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

      4.

      30/2004-Customs dated 28.01.2004

      This notification prescribes concessional rate of customs duty on import of second hand computers as donation

      [All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

      5.

      81/2005-Customs dated 08.09.2005

      This notification prescribes concessional rate of customs duty on machinery/components for initial setting up of power generation project

      [All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

      6.

      5/2017-Customs dated 02.02.2017

      This notification prescribes concessional rate of customs duty on machinery, equipment, apparatus, components and appliances for initial setting up of fuel cell based system for generation of power

      [All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

      7.

      16/2017-Customs dated 20.04.2017

      This notification prescribes concessional rate of customs duty on specified drugs and medicines supplied free of cost to patients

      [All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

      8.

      Serial No. 2 of 32/2017-Customs dated 30.06.2017

      This notification prescribes concessional rate of customs duty on art work created abroad by Indian artist and sculptures, antique books more than 100-year-old.

      [The entry, unless varied or rescinded, will have validity up to 31.03.2023.]

       


      Full Text:

      Budget 2022-23 + FINANCE Bill, 2022

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