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TMI BlogChanges in Customs, Central Excise, GST law and rates have been proposed through the Finance Bill, 2022X X X X Extracts X X X X X X X X Extracts X X X X ..... .) 1st February, 2022 Circular (Central Excise) 1082/03/2022-cx 1st February, 2022 Circular (Customs) 3/2022-customs 1st February, 2022 2. Unless otherwise stated, all changes in rates of duty will take effect from the midnight of 1st February/2nd February, 2022. A declaration has been made under the Provisional Collection of Taxes Act, 1931 In respect of clause 97 (a) of the Finance Bill, 2022 so that changes proposed therein take effect from the midnight of 1st February/2nd February, 2022. The remaining legislative changes would come into effect only upon the enactment of the Finance Bill, 2022 or from 1st May, 2022. 3. Major highlights of the budget - i. A comprehensive review of Customs duty exemptions has been undertaken through a process involving crowd sourcing and inputs from various ministries. In this context, about 350 exemptions are being withdrawn. ii. Further, after a detailed review of customs duty exemptions on capital goods and project imports, more than 40 exemptions relating thereto are proposed to be gradually phased out. iii. Certain exemptions are being introduced for duty free import of specified goods by bonafide exporter of items like han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t May, 2022. The duty rates on such item shall then operate through First Schedule of Customs Tariff Act, 1975. It may however be noted that certain rate changes in the Customs Tariff are coming into effect immediately by virtue of declaration under the Provisional Collection of Taxes Act. [The details are at Annexure B] (iii) Central Excise Changes: The changes in Central Excise Act and duty rates are at Annexure C. (iv)Legislative changes in the Customs Act, Customs Tarff Act and Rules made thereunder: a) Certain significant changes are being made in the Customs Act. The definition of 'proper officer' is being modified; officers of DRI, Audit and Preventive formation are being specifically included in the class of officers of Customs; explicit provision is being made for assigning functions to officer of Customs by the Board or Pr. Commissioner/Commissioner of Customs; concurrent jurisdiction is being provided for in certain circumstance, as the Board may specify; explicit provision is being made to delineate jurisdiction on cases involving short levy/payment of duty or erroneous refund etc. and to provide for concurrent exercise of powers. Further, enabling provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requested that all possible efforts may be made to guide the taxpayers by holding interactive sessions/seminars for their benefit. In case of any doubt or difficulty, I would request you to kindly bring it to my notice immediately at js- [email protected] or to the notice of Shri Gaurav Singh, Deputy Secretary (TRU) (Tel: 011- 2309 2753, email: [email protected]), Shri J.S. Kandhari, Deputy Secretary (TRU) (Tel: 011-2309 5526, email: [email protected]), Shri Syed Wasif Haider, OSD (TRU) (Tel: 011-2309 5516, email: [email protected]) or Shri Dibyalok, Budget Officer (TRU) (Tel: 011-2309 5547, email: [email protected] We can also be reached at [email protected]. 6. Copies of Finance Bill, 2022, Finance Minister's Budget Speech, Explanatory Memorandum to the Bill and relevant notifications can be downloaded directly from www.indiabudget.gov.in as well as www.cbic.gov.in. 7. To conclude my team and I would like to express cur gratitude to you for the valuable suggestions, feedback and support and would look forward to your comments/ suggestions. With warm regards, Yours sincerely, (G. D. Lohani) Joint Secretary (TRU-I) ANNEXURE A CUSTOMS Note: (a) "Basic C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge is being made effective from 02.02.2022. Further, a new dedicated tariff item 0306 36 20 for Live Litopennaeus vannamei Shrimp with a standard rate of duty of 10% is being inserted with effect from 01.05.2022 [Clause 97 (b) of the Finance Bill, 2022 refers]. Accordingly, the reference to sub heading 0306 16 or 0306 17 is being modified to heading 0306. Thus, the BCD rate on this item would operate through the Tariff with effect from 01.05.2022 and consequently entry '6' shall be omitted. (3) BCD on Live Black tiger shrimp (Penaeus monodon) (heading 0306) is being decreased from 30% to 10% by inserting S. No. 6A in notification No. 50/2017 - Customs [S. No. 3 of notification No. 02/2022- Customs dated 1st February 2022 refers]. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry '6A' shall be omitted. (4) BCD on Frozen Krill (tariff item 0306 19 00) is being decreased from 30% to 15% by inserting S. No. 6B in notification No. 50/2017 - Customs [S. No. 3 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. This change is being made effective from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sea-food. On review, the said List of goods to which this entry is applicable is being revised [S. No. IV(viii) of notification No. 02/2022 - Customs dated 1st February 2022 refers]. (10) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 2 to 4 of the Table 1 in Annexure B. Chapter 6-7: No change Chapter 8 (1) Vide S. No. 26 of notification No. 50/2017- Customs, concessional BCD rate of 10% is prescribed on all goods falling under tariff items 0802 21 00 and 0802 22 00. On review, this entry is being omitted [S. No. 7 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. Consequently, all goods falling under tariff items 0802 21 00 and 0802 22 00 will now attract a BCD rate of 30%. (2) Vide S. No. 28 of notification No. 50/2017- Customs, concessional BCD rate of 30% is prescribed on all goods falling under tariff items 0802 91 00, 0802 92 00, 0802 99 00. On review, this entry is being omitted [S. No. 9 of notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2022. For details, please refer to Sr. No. 14, 15 of the Table 1 in Annexure B. Chapter 12 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 16, 17 of the Table 1 in Annexure B. Chapter 13 (1) Vide S. No. 50 of notification No. 50/2017- Customs, concessional BCD rate of 5% is prescribed on "Seed lac" falling under sub-heading 1301 90. On review, this entry is being omitted [S. No. 15 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. Consequently, "Seed lac" falling under sub-heading 1301 90 will now attract a BCD rate of 30%. (2) BCD on Asafoetida (tariff item 1301 90 13) is being decreased from 20% to 5% by amending S. No. 51 in notification No. 50/2017 - Customs [S. No. 16 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30% to 15% by inserting S. No. 91A in notification No. 50/2017 - Customs [S. No. 22 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry '91A' shall be omitted. Chapter 19 (1) Vide S. No. 96 of notification No. 50/2017- Customs, concessional BCD rate of 30% is prescribed on "Tapioca and substitutes therefor prepared from starch in the form of flakes, grains, pearls, siftings or in similar forms", falling under tariff item 1903 00 00. On review, this entry is being omitted [S. No. 23 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. Consequently, such goods will now attract a BCD rate of 50%. (2) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 20 of the Table 1 in Annexure B. Chapter 20-21: No change Chapter 22 (1) A technical cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with effect from 1st April, 2023. [S. No. 33(a) of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods falling under Chapters 25, 28, 38 or 39 will now attract an applicable BCD rate, with effect from 1st April, 2023. ii. Clause B of this entry where a concessional BCD rate of 5% is prescribed on "Phenolic Resin" is being omitted with effect from 2nd February, 2022. Consequently, these goods will now attract a BCD rate of 7.5%. [S. No. 33(b) of notification No. 02/2022-Customs dated 1st February 2022 refers] (4) Vide S. No. 175 of notification No. 50/2017, concessional BCD rate of Nil is prescribed on 'Common salt (including rock salt, sea salt and table salt)', falling under Chapter heading 2501. On review, this entry is being omitted [S. No. 49 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, goods, falling under Chapter heading 2501 will now attract a BCD rate of 5%. (5) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber countries vide notification No. 99/2011- Customs dated 9th November, 2011. Therefore, Electrical energy imported from Nepal and Bhutan would be eligible for exemption from BCD under this notification. Exemption to electricity from Bhutan is also available under notification No. 40/2017-Customs dated 30th June, 2017. Therefore, this is a technical change and there will be no change in the effective rate of BCD. 6) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 35 to 45 of the Table 1 and in Annexure B. Chapter 28 1) BCD on "Sodium Cyanide" falling under tariff item 2837 11 00 is being increased from 7.5% to 10%. With effect from 02.02.2022, tariff item 2837 11 00' has been excluded from entry '169' of Notification No. 50/2017-Customs. Consequently, the BCD rate on this item would operate through the Tariff. [S. No. 45 of notification No. 02/2022 dated 1st February 2022 refers]. 2) Vide S. No. 171 of notification No. 50/2017, concess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hange is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry '200' shall be omitted. 4) BCD on "Acetic acid" falling under tariff item 2915 21 00 is being decreased from 7.5% to 5% by inserting S. No. 204A in the notification No. 50/2017-Customs [S. No. 59 of notification No. 02/2022 dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry '204A' shall be omitted. 5) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 51 to 65 of the Table 1 in Annexure B. Chapter 30 1) Vide S. No. 215 of notification No. 50/2017, concessional BCD rate of Nil is prescribed on "The blood group sera, namely Anti C., anti E., anti c., anti e., anti M., anti N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification No. 50/2017-Customs. ii. 39 items have been removed from the List-4. [IV(x) of Notification No. 02/2022- Customs dated 02.02.2022 refers] iii. For 2 medicines namely Poliomyelitis Vaccine (inactivated and live) and of Monocomponent Insulin, the formulations are being omitted from List-4. Further, bulk drugs for manufacture of these formulations have been granted exemptions till 31.03.2024. W.e.f. 01.04.2024 these bulk drugs would attract 5% rate under newly created entry at S. No. 166A of 50/2017-Customs [S. No. 43 (b) of notification No. 02/2022-Customs dated 1st February 2022 refers] 5) A new entry (S. No. 167A) is being inserted in the notification No. 50/2017- Customs, to exempt drugs or medicines, falling under Chapter 30 or Heading 9804 of the First Schedule to the Customs Tariff Act, 1975, which are used for the treatment of rare diseases, when imported by 8 Centers of Excellence (CoE) listed in the associated List 2 (inserted) or any other person/institution on their recommendation and Condition No. 112 is also being inserted. [S. No. 44 of notification No. 02/2022- Customs dated 1st February 2022 refers] Chapter 31 (1) Vide S. No. 224 of notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 65 of the Table 1 in Annexure B. Chapter 34 1) Vide S. No. 241 of notification No. 50/2017, concessional BCD rate of 7.5% is prescribed on 'Vinyl Polyethylene Glycol for use in manufacture of Poly Carboxylate Ether' falling under Tariff Item 3404 20 00. On review, this entry is being omitted [S. No. 67 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 10%. 2) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 69 of the Table 1 in Annexure B. Chapter 35 1) Vide S. No. 242 of notification No. 50/2017, concessional BCD rate of 5% is prescribed on 'The following goods for use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h effect from 2nd February, 2022. [S. No. 2 of notification No. 10/2022-Customs dated 1st February, 2022 refers] Chapter 42 - 43: No change Chapter 44 (1) Vide S. No. 289 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on Wood in chips or particles, used in manufacture of paper, paperboard and newsprint (falling under tariff items 4401 21 00 and 4401 22 00). On review, this entry is being omitted with effect from 31st March, 2023 [S. No. 76 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will attract a BCD rate of 5% with effect from 1st April, 2023. Chapter 45 - 46: No change Chapter 47 (1) BCD on recovered (waste and scrap) paper or paperboard imported for manufacture of paper, paperboard or newsprint (falling under sub-heading 4707) is being increased from Nil to 2.5% by amending S. No. 292 of notification No. 50/2017- Customs [S. No. 77 of notification No. 02/2022-Customs dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. Chapter 48 (1) Vide S. No. 293 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on Grape guard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile item shall operate through notification No. 82/2017-Customs. Accordingly, the Notification No. 82/2017-Customs is being amended to incorporate effective BCD on textile items including those on which presently the rates are prescribed vide notification No. 48/2006-Customs dated 26th May, 2006 (S. No. (i) of notification No. 7/2022-Customs, dated 1st February, 2022 refers). Notification No. 48/2006-Customs dated 26th May, 2006 is being rescinded with effect from 2nd February, 2022 (S. No. 5 of notification No. 05/2022-Customs, dated 1st February, 2022 refers). (6) The effective BCD on certain textile tariff items falling under CTH 6001, 6101, 6102, 6103, 6104, 6201, 6202, 6203, 6204 are hitherto composite rates, with different rates of specific duty. On a number of these items, the combination of specific and advalorem rate is being replaced by ad-valorem rates only. For the period from 2nd February, 2022, to 30th April, 2022, notification No. 82/2017-Customs dated 27th October, 2017 will be amended to incorporate effective BCD so prescribed (S. Nos. (liv) to (lxvi) of notification No. 7/2022-Customs, dated 1st February, 2022 refers). 1st May, 2022 onwards these items Tariff Rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 86 of the Table 1 in Annexure B. Chapter 70 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 87, 88 of the Table 1 in Annexure B. Chapter 71 (2) S. No. 345A is being inserted in notification No. 50/2017-Customs to exempt Simply Sawn Natural Diamonds (tariff items 7102 21 or 7102 31 00) imported under Kimberley Process Certification Scheme (KPCS) from BCD [S. No. I (87) and IV (vii) of notification No. 2/2022-Customs, dated 1st February, 2022 refers]. This change is being made effective from 2nd February, 2022. (3) BCD on Cut and Polished Diamonds (Chapter 71) and Cut and Polished Natural Gemstones (Chapter 71 (except 7104 90 90)) is being decreased from 7.5% to 5% by amending S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bruary, 2022 refers] (3) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 91 to 93 of the Table 1 in Annexure B. Chapter 73 (1) BCD on S. G Ingot Castings (tariff item 7325 10 00) for use in the manufacture of plastic processing machineries (tariff items 8477 10 00, 8477 20 00, 8477 30 00) is being decreased from 10% to 7.5% by inserting S. No. 464A in notification No. 50/2017- Customs [S. No. 125 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. Chapter 74 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 94, 95 of the Table 1 in Annexure B. Chapter 75 (1) The applicable BCD rate on all goods falling under this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th effect from 1st April, 2023. (3) Vide S. No. 395 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on 'marine seawater pumps with fibre Impellers' and 'automatic fish/prawn feeder' falling under Chapter 84 or any other chapter. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 97 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (4) Vide S. No. 396 of notification No. 50/2017-Customs, NIL BCD rate is prescribed on 'machinery or equipment for effluent treatment plant for leather industry' falling under Chapter 84 or any other chapter. On review, this entry is being omitted with effect from 1st April, 2022 [S. No. 98 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2022. (5) Vide S. No. 397 of notification No. 50/2017-Customs, concessional BCD rate of 7.5% is prescribed on goods required for use in high voltage power transmission project falling under Chapter 84 or any other chapter. On review, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Also, the associated condition No. 48 for availing such exemption and disposal of such goods have been simplified by defining a licensee, lessee, contractor or sub-contractor and removing the requirement of producing a certificate from Directorate General of Hydrocarbons (DGH) for import or each transaction Further, condition of disposal is being simplified and the revised procedure of disposal of such goods through MSTC (or any Government Agency notified by Government for this purpose) shall apply to goods imported earlier. [S. No. 102 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. (10) Vide S. No. 405 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on parts for wind operated electricity generators, falling under Chapter 84 or any other chapter. On review, a few entries of this exemption are being omitted with effect from 1st April, 2022 [S. No. 103 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. The remaining entries of this exemption would be omitted with effect from 1st April, 2023 [S. No. 103 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry is being omitted with effect from 1st April, 2022 [S. No. 105 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2022. (16) Vide S. No. 413 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on machinery for renovation or modernization of a power generation plant, falling under Chapter 84 or any other chapter. On review, this entry is being omitted with effect from 1st April, 2022 [S. No. 105 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2022. (17) Vide S. No. 414 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on goods for manufacture & supply of machinery to a power generation plant, falling under Chapter 84 or any other chapter. On review, this entry is being omitted with effect from 1st April, 2022 [S. No. 105 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2022. (18) Vide S. No. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th effect from 1st April, 2023. (23) Vide S. No. 440 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on fogging machines, falling under Chapter 84. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 113 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (24) BCD on the 'cost of exchange of Bushing (made up of platinum and rhodium alloy, imported in exchange of worn-out bushing exported for refurbishment)' falling under Chapter 84, is being decreased from 10% to 7.5% by amending S. No. 442 of notification No. 50/2017-Customs [S. No. 114 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. (25) Vide S. No. 443 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on specific capital goods when imported by Security Printing and Minting Corporation of India Limited (SPMCIL) falling under Chapter 84. On review, this entry is being omitted [S. No. 115 of notification No. 2/2022-Customs, dated 1st February 2022 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84229090. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 123 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (32) Vide S. No. 458 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on machinery for the industrial preparation of food or drink, falling under tariff heading 8438. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 123 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (33) Vide S. No. 460 of notification No. 50/2017-Customs, Nil BCD rate is prescribed on shuttle less looms, falling under tariff headings 8446 or 8448. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 123 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (34) Vide S. No. 461 of notification No. 50/2017-Customs, concessional BCD rate of 5% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / 9002 11 00) is being decreased from 15%/ 10% to 2.5% by amending S. No. 6B of notification No. 57/2017. [S. No. 4(ii) of notification No. 15/2022-Customs dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. (2) BCD rate on specified parts of transformers for use in manufacture of chargers/ adapters is being decreased from 10%/ 15% to 5% by inserting S. No. 13B in notification No. 57/2017-Customs. This change is being made effective from 2nd February, 2022 and the concessional rate will be valid till 31st March, 2024 [S. No. 4(iii) of notification No. 15/2022-Customs dated 1st February 2022 refers]. (3) Notification No.11/2022-Customs is being issued to prescribe a Phased Manufacturing Program (PMP) for wrist wearable devices (commonly known as smart watches), falling under tariff item 8517 62 90, and its inputs/ parts / sub-parts. The proposed trajectory for the applicable BCD rates on these goods is mentioned in the table below. Table PMP for Wrist Wearable Devices (commonly known as Smart watches) S. No. CTH Commodity From To 2022-23 2023-24 2024-25 2025-26 Following parts [S. No. 1 to 7] for manufacture of wearable devic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all goods falling under subheadings 8518 21, 8518 22, 8518 29 and 8518 30, other than 'hearable devices' (as defined in the notification No. 12/2022-Customs) shall continue to remain 15% [S. No. 10 of notification No. 12/2022-Customs dated 1st February 2022 refers]. Table PMP for Hearable Devices S. No. CTH Commodity From To 2022- 23 2023-24 2024-25 2025-26 Following parts [S. No. 1 to 6] for manufacture of hearable devices falling under subheadings 8518 21, 8518 22, 8518 29 or 8518 30 of the Customs Tariff 1. 8518 90 00 PCBA for Hearable Device 10% NIL 10% 15% 15% 2. 8544 USB Cable 10% 15% 15% 15% 15% 3. 73, 74, 85 Specified parts of hearable devices As per CTH NIL 5% 10% 15% 4. 8507 60 00/ 8507 80 00 Battery 15% NIL 5% 10% 15% 5. 8518 90 00 Speaker Assembly (Pre-assembled speaker driver with protective mesh, but not including PCBA or battery) 10% NIL NIL 5% 10% 6. Any Chapter Parts, sub-parts, and raw materials for use in the manufacture of the S. Nos 1, 3, 4, and 5 above As per CTH NIL NIL NIL NIL 7. 8518 21 to 8518 30 Hearable Devices 15% 20% 20% 20% 20% Note: (1) IGCR conditions shall apply for the items i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de up into panels (tariff item 8541 43 00) is being increased from 20% to 40% [Clause 97(a) of the Finance Bill 2022 refers]. By virtue of the declaration made under Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. However, the BCD rate on these goods would remain at 'Nil' up to 31st March, 2022, vide S. No. 23 of notification No. 24/2005-Customs. The BCD on these goods will increase to 40% with effect from 1st April, 2022. However, goods under this tariff item that are used solely and exclusively with specified goods covered by notification No. 24/2005-Cusoms and 25/2005-Customs will continue to attract 'Nil' BCD vide the newly inserted S. No. 38A of 24/2005-Customs and 32A of notification No. 25/2005-Customs [S. Nos. 2(iii) and 3(iv) of notification No. 15/2022- Customs dated 1st 0February 2022 refers]. (8) The tariff rate on all goods falling under tariff item 8541 49 00 is being increased from 20% to 40% [Clause 97(a) of the Finance Bill 2022 refers]. By virtue of the declaration made under Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. However, the BCD rate these goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of agro-chemical sector units falling under chapters 84, 85 or 90. On review, this entry is being omitted from 2nd February, 2022. [S. No. 108 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract duty at tariff rate. (15) Vide S. No. 450 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on over load protector and positive thermal coefficient, falling under tariff item 8536 20 90 and 8539 49 00 respectively, for use in manufacture of refrigerator compressors. On review, the entry is being omitted with effect from 2nd February, 2022. [S. No. 120 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 10%. (16) Vide S. No. 479 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on specified goods including mono or bipolar membrane electrolysers, membranes and its parts, required for to caustic soda units or caustic potash units falling under any chapter. [S. No. 128 of notification No. 02/2022-Customs dated 1st February 2022 refers]. On review, this entry would be omitted with effect from 1st Apri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scription of the exempted goods has been changed to line telephone handsets falling under tariff item 8518 30 00. [S. No. 3(i) of notification No. 15/2022-Customs dated 1st February 2022 refers]. (25) Vide S. No. 28 of notification No. 25/2005-Customs, concessional BCD rate of Nil is prescribed for electrical conductors for a voltage not exceeding 80 V under subheading 8544 49. The sub-heading in the exemption entry has been updated to include sub-heading 8544 42. [S. No. 3(ii) of notification No. 15/2022-Customs dated 1st February 2022 refers]. However, the exemption provided under this entry will not be applicable for USB cables (sub-heading 8544 42) for cellular mobile phones and wrist wearable devices (commonly known as smart watches). (26) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. Nos. 103 to 107 of the Table 1 in Annexure B. Chapter 86: No Change Chapter 87 (1) The entries at S. No. 525, 526A and 531A of notification No. 50/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equently, these goods will now attract applicable BCD rate. (3) Vide S. No. 216A and 481A of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on raw materials, parts or accessories for use in manufacture of on artificial kidney and disposable sterilized dialyzer and microbarrier of artificial kidney, respectively. On review, these entries are being omitted [S. Nos. 61 and 129 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract applicable BCD rate. (4) BCD rates on specified parts of X-ray machines for medical, surgical, dental or veterinary use is being increased from 5% to 10% by amending S. No. 563A of notification No. 50/2017-Customs [S. No. 147 of notification No. 02/2022-Customs dated 1st February 2022 refers]. This change is being made effective from 1st April, 2022. (5) BCD rate on X-ray machines for medical, surgical, dental or veterinary use (tariff items 9022 14 20 or 9022 14 90) is being increased from 7.5% to 10% by amending S. No. 563A of notification No. 50/2017-Customs. [S. No. 147 of notification No. 02/2022-Customs, dated 1st February 2022 refers]. This change is being made e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be governed as per the PMP in table above. (7) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. Nos. 108, 115 and 116 of the Table 1 in Annexure B. Chapter 91 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 117 of the Table 1 in Annexure B. Chapter 92 - 94: No Change Chapter 95 (1) BCD on parts of electronic toys used in the manufacture of electronic toys, falling under heading 9503 is being increased from 15% to 25% by amending S. No. 591 of notification No. 50/2017-Customs dated 30th June, 2017, [S. No. 152 of notification No. 02/2022-Customs dated 1st February 2022 refers] (2) Vide S. No. 588 of notification No. 50/2017, concessional BCD rate of Nil is prescribed on 'Synthetic tracks an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /5 7.5 157, 158, 162, 163 a. *New projects registered after 30th September 2022 under project imports will attract 7.5% BCD rate. [S. No. I (155 to 163) and IV (vii) of notification No. 2/2022- Customs, dated 1st February 2022 read with Clause 97(b) of the Finance Bill 2022 refers]. b. *Projects registered till 30th September 2022 under project imports will continue to get lower rates of duty till 30th September 2023. [S. Nos. I (155 to 163) and IV (vii) of notification No. 2/2022-Customs, dated 1st February 2022 read with Clause 97(b) of the Finance Bill 2022 refers]. c. *With effect from 30th September 2023, all projects registered under project imports will attract 7.5% BCD rate. [S. Nos. I (155 to 163) and IV (vii) of notification No. 2/2022-Customs, dated 1st February 2022 read with Clause 97(b) of the Finance Bill 2022 refers]. (2) In Condition No. 16 associated with Entry at S. No. 607 of Notification No. 50/2017-Customs for the words "Duchenne Muscular Atrophy" the words "Duchenne Muscular Dystrophy" are being substituted. II. Miscellaneous Changes 1. Exemption to import duty for bonafide exporters - A scheme for duty-free imports for the purpose of use in goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, 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. 2. 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 [S. No. III of 2/2022-Customs dated 01.02.2022 refers] In addition, end date of 31.03.2023 as per sub-section (4A) of section 25 of the Customs Act, 1962 is also being indicated against the following conditional exemptions, namely- S. No. Notification No. 1. 146/94-Customs dated 13.07.1994 2. 147/94-Customs dated 13.07.1994 3. 39/96-Customs dated 23.07.1996 4. 50/96-Customs dated 23.07.1996 5. 30/2004-Customs dated 28.01.2004 6. 81/2005-Customs dated 08.09.2005 7. 5/2017-Customs dated 02.02.2017 8. 16/2017-Customs dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 08 /2011-Customs dated 14.02.2011 This notification prescribes exemption from the whole of the additional duty of customs, leviable thereon under sub-section (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. 11. 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. 12. 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. 13. 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. 14. 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 Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toms are being moved to the first schedule of Customs Tariff with effect from 1st May, 2022. Consequently, the respective entry will be omitted vide Notification No. 2/2022-Customs, dated 1.2.2022 with effect from 1st May, 2022 (column 6 of the table below refers). While the same entry will be inserted to the first schedule of Customs Tariff vide Clause 97(b) of the Finance Bill, 2022 with effect from 1st May, 2022. Applicable BCD rate on these goods would thus remain unchanged. Table 1 S.No. S. No. as per Notification No. 50/2017- Customs HS Code Description of goods as per notification [Indicative only] Applied Rate S. No. of notification 2/2022- Customs refers (1) (2) (3) (4) (5) (6) 1. 3A 0101 21 00 Pure-bred Breeding Horses Nil 1 2. 12 0508 00 10 All goods Nil 4 3. 14 0511 99 11 Artemia 5% 4 4. 15 0511 10 00 Bovine Semen 5% 5 5. 22 0801 31 00 Cashew nuts in shell 2.5% 6 6. 27 0802 51 00, 0802 52 00 All goods 10% 8 7. 29 0804 10 20, 0804 10 30 All goods 20% 10 8. 30 0805 10 00, 0805 50 00, 0806 10 00, 0808 30 00 or 0808 40 00 All goods 30% 10 9. 34 0904 11 10 Long pepper (Piper longum) 30% 13 10. 35 0907 All ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt 2902 43 00, 2902 50 00) All goods 2.5% 56 53. 194 2902 41 00 o-xylene Nil 56 54. 195 2903 (except 2903 11 10, 2903 12 00, 2903 13 00, 2903 22 00) or 2904 All goods 5% 56 55. 196 2902 43 00 p-xylene Nil 56 56. 197 2902 50 00 Styrene 2% 56 57. 198 2903 15 00 Ethylene Dichloride (EDC) Nil 56 58. 199 2903 21 00 Vinyl chloride monomer (VCM) 2% 56 59. 201 2905 31 00 Mono ethylene glycol (MEG) 5% 58 60. 202A 2910 20 00 Methyl oxirane (propylene oxide) 5% 58 61. 206 2917 36 00 Purified Terephthalic Acid (PTA), Medium Quality Terephthalic Acid (MTA) and Qualified Terephthalic Acid (QTA) 5% 60 62. 207 2917 37 00 Dimethyl terephthalate (DMT) 5% 60 63. 208 2926 10 00 Acrylonitrile 2.5% 60 64. 210 293371 00 Caprolactam 5% 60 65. 211 2905 43 00, 2905 44 00, 3301, 3501, 3502, 3503, 3504, 3505, 3809 10 00 All goods 20% 60 66. 219 31 (except 31022100, 31023000, 31025000, 31043000, 31052000, 31053000, 31054000, 31055100, 31055900, 31056000, 31059010, 31059090) All goods 7.5% 62 67. 231 3201, 3202, 3203, 3204, 3205 00 00, 3206 (except 3206 11, 3201 20 00 and 3206 19 00) or 3207 All Goods 7.5% 64 68. 232 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.5% 132 107. 493 8547 All goods 7.5% 132 108. 494 9030 31 00, 9030 90 10 All goods Note: This is a partial change to the original entry; 7.5% 133 109. 541 8802 11 00 and 8802 12 00 Helicopters 2.5% 141 110. 547 8807 10 00, 8807 20 00, 8807 30 00 All goods 2.5% 142 111. 552 8902 00 10 Trawlers and other fishing vessels Nil 143 112. 554 8905 10 00 All goods Nil 144 113. 556 8907 10 00 All goods Nil 145 114. 557 8908 00 00 All goods 2.5% 145 115. 563 9018 32 30, 9018 50 20, 9018 90 21, 9018 90 24, 9018 90 43, 9018 90 95, 9018 90 96, 9018 90 97, 9018 90 98 Goods required for medical, surgical, dental or veterinary use 5% 146 116. 563A 9018 (other than items in entry at Sr. No. 563 and 9018 90 99), 9019 (other than 9019 10 20), 9020, 9021 All goods 7.5% 147 117. 584 9108, 9110 or 9114 30 10 Watch dials and watch movements 5% 150 118. 594A 9506 91 All goods 1 0% 154 II. The following entries of notification No. 52/2017-Customs are being moved to the first schedule of Customs Tariff with effect from 1st May, 2022. Consequently, the respective entry will be omitted (vide Notification No. 06/2022-Customs, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1944, with the similar proposed amendment in the sub-heading 2710 12 in the First Schedule to the Customs Tariff Act, 1975. [Clause 98 of Finance Bill, 2022 refers] (4) In order to promote blending of Motor Spirit (commonly known as Petrol) with ethanol/methanol and blending of High Speed Diesel with bio-diesel, an additional Basic Excise Duty of ₹ 2 per litre on Petrol and Diesel, intended to be sold to retail consumers without blending, as confirming to (Bureau of Indian Standards) BIS classification, would be levied with effect from the 1st day of October, 2022. [Notification No. 01/2022-Central Excise dated 1st February, 2022 refers] (5) The Seventh Schedule of the Finance Act, 2001, is being amended by substituting Central Excise tariff item 2709 20 00 with 2709 00 10 for Petroleum Crude. [Clause 125 of Finance Bill, 2022 refers] ANNEXURE D Amendments in Customs Act, 1962: (1) Clause (34) of section 2 contains definition of "proper officer". This section is being modified to specifically state that assignment of functions to an officer of Customs by the Board or the Principal Commissioner of Customs or the Commissioner of Customs shall be done under the newly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of such goods. This amendment is a measure to address the issue of undervaluation in imports. [Clause 88 of Finance Bill, 2022 refers] (7) Section 28E is being amended to omit the Explanation under clause (c) and omit clause (h). [Clause 89 of Finance Bill, 2022 refers] (8) Section 28H is being amended to make provisions for prescribing appropriate fees by Board relating to application for advance Ruling and also give flexibility to the applicant to withdraw his application at any time before a ruling is pronounced from the current 30 days' time period. Consequently, the sub-section (3) is being omitted. [Clause 90 of Finance Bill, 2022 refers] (9) Sub-section (7) under section 28I is being substituted so as to remove the word "Members" and also make changes accordingly. [Clause 91 of Finance Bill, 2022 refers] (10) Sub-section (2) under Section 28J is being substituted so that advance ruling under sub-section (1) of Section 28J is now valid for a period of three years or till there is a change in law or facts on the basis of which the advance ruling has been pronounced, whichever is earlier. [Clause 92 of Finance Bill, 2022 refers] A proviso is also being inserted to provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms (Import of goods at concessional rate of duty) Rules, 2017 are being amended to provide the following facilities: (1) To introduce end to end automation in the entire process. Requirement of submitting all the necessary details electronically, through a common portal, is being brought out in the Rules itself. (2) Standardizing and notifying the various forms in which details are to be submitted electronically. (3) Leveraging the advantage of such submissions electronically, the need for any transaction based permissions and intimations are all being done away with. (4) Consequently, the procedure to claim the notification benefit is being simplified and automated. (5) For effective monitoring of the use of goods for the intended purposes, a Monthly Statement is being proposed which is to be submitted by the importer on the Common Portal. (6) An option for voluntary payment of the necessary duties and interest, through the Common Portal is being provided to the importer. [Notification No. 07/2022-Customs (N.T.) refers] ANNEXURE E Amendments in CGST, IGST and UTGST Acts, 2017: Amendments carried out in the Finance Bill, 2022, vide clause 99 to 113 will come into e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted for prescribing the manner as well as conditions and restrictions for communication of details of inward supplies and input tax credit to the recipient by means of an auto-generated statement and to do away with two-way communication process in return filing. [Clause 103 of Finance Bill, 2022 refers] (6) Section 39 of the CGST Act is being amended so as to: a. provide that the non-resident taxable person shall furnish the return for a month by thirteenth day of the following month; b. provide an option to the persons furnishing return under proviso to sub-section (1), to pay either the self-assessed tax or an amount that may be prescribed; c. provide for an extended time upto thirtieth day of November of the following financial year, for rectification of errors in the return furnished under section 39; d. provide for furnishing of details of outward supplies of a tax period under subsection (1) of section 37 as a condition for furnishing the return under section 39 for the said tax period. [Clause 104 of Finance Bill, 2022 refers] (7) Section 41 of the CGST Act is being substituted so as to do away with the concept of "claim" of eligible input tax credit on a "prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of withholding of or recovery from refunds in respect of all types of refund; d. provide clarity regarding the relevant date for filing refund claim in respect of supplies made to a Special Economic Zone developer or a Special Economic Zone unit by way of insertion of a new sub-clause (ba) in clause (2) of Explanation thereto. [Clause 112 of Finance Bill, 2022 refers] (15) Consequent to the amendment in section 38 of the CGST Act, sub-section (2) of section 168 of the CGST Act is being amended so as to remove reference to section 38 therefrom. [Clause 113 of Finance Bill, 2022 refers] II. RETROSPECTIVE CHANGES RELATING TO GST: Following amendments carried out in the Finance Bill, 2022, vide clause 114 to 123 will come into effect on the date of its enactment. (1) Central Tax, Union Territory Tax and Integrated Tax is being exempt on supply of unintended waste generated during the production of fish meal (falling under heading 2301), except fish oil, for the period 01.07.2017 to 30.09.2019, subject to the condition that if the said tax has been paid, same shall not be eligible for refund [Clause 116, 119, 122 of the Finance Bill, 2022 refers] (2) Central Tax, Union Territo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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