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TMI BlogChanges in Customs, Central Excise, GST law and rates have been proposed through the Finance Bill, 2023X X X X Extracts X X X X X X X X Extracts X X X X ..... in the CGST Act and IGST Act through clauses 128 to 144 of the Bill. The details are briefly brought out below. 2. Changes in customs and central excise duty rates are also being carried through the following Notifications which are effective from 2nd February,2023 unless specified otherwise: Notification Nos. Date Customs (Tariff) 02/2023-Customs to 12/2023-Customs 1st February, 2023 Central Excise (Tariff) 05/2023-Central Excise 1st February, 2023 3. The proposed changes in customs, central excise/ NCCD rates, and other changes proposed in the Finance Bill, 2023 are briefly summarized below: A. CUSTOMS I. Basic customs duty rate structure: a) As part of rationalization of customs duty rate structure, the number of basic customs duty rates on goods, other than textiles and agriculture, is being reduced. As a result, there are changes in the rates of BCD as well as in the rates of AIDC and/ or SWS. b) The BCD is being increased on styrene, vinyl chloride monomer, toys and parts of toys (other than parts of electronic toys), bicycles, automobiles in SKD and CBU form, Silver bar, Silver dore and naphtha. c) The BCD and the AIDC /SWS rates are being re- calibrate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingredients/inputs for use in the manufacture of aquatic feed is being reduced subject to IGCR condition as follows: Description of goods From To Fish meal 15% 5% Krill meal 15% 5% Fish lipid oil 30% 15% Algal Prime (flour) 30% 15% Mineral and Vitamin Premixes 15% 5% 4. Electronics goods a) The BCD on camera lens for camera module and input/sub parts for lens of camera module of mobile phone is being reduced from 2.5% to Nil subject to IGCR condition. b) Exemption from BCD is being provided to specified chemicals/items for manufacture of Pre-calcined Ferrite Powder as is available for Ferrites (S. No 17 of Notification no 25/1999 -Customs). c) Exemption from BCD is being provided to Palladium Tetra Amine Sulphate for manufacture of parts of connectors as is available for manufacture of connectors. (S.No 225 of Notification no 25/1999 -Customs). d) The BCD on parts for manufacture of open cells of TV panels is being reduced from 5% to 2.5% subject to IGCR condition. 5. Electrical appliances e) The BCD on electric kitchen chimney is being increased from 7.5% to 15% . f) The BCD on heat coils for use in manufacture of electric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the notification No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India vide number G.S.R. 785(E), dated the 30th June, 2017. 3. All goods falling under HSN 7113, other than the goods covered under S. Nos. 356, 357 and 364C of the Table in the notification No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India vide number G.S.R. 785(E), dated the 30th June, 2017. 4. All goods falling under HSN 7114, other than the goods covered under S. Nos. 356 and 357 of the Table in the notification No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India vide number G.S.R. 785(E), dated the 30th June, 2017. 5. Bicycles (HSN 8712 00 10) 6. Motor vehicle including electrically operated vehicles falling under HSN 8703 covered under S. No. 526 (1)(b), 526 (2)(b), 526A(1)(b) and 526A(2)(b) of the Table in Notification No. 50/2017-Customs dated the 30th June, 2017, published in the Gazette of India vide no G.S.R. 785(E) dated the 30th June, 2017. 7. Aeroplane and other aircrafts falling under tariff items 8802 2000, 8802 3000 and 8802 4000 covered under S. No. 543 A of the Table in Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars and one year are as follows: S. No S.No.in Notification No 50/2017cus/ Notification No Commodity From To Extended by five years upto 31.3.2028 1. S. No 609 of 50/2017Customs Used bonafide personal and household effects of a deceased person 2. 33/2017- Customs Exemption to import/reimport of challenge cups and trophies won by a unit of Defence Force or its members. 3. 41/2017- Customs Exemption to import of cups, trophies to be awarded to winning teams in international tournament /world cup to be held in India. 4. 146/94- Customs Exemption to import of specified sports goods imported by National Sports Federation or by a Sports person of outstanding eminence for training. 5. 90/2009- Customs Exemption to imports from Antarctica of goods used for or related to Indian Antarctic Expedition or Indian Polar Science Programme. Extended by two years upto 31.3.2025 1. 168 Specific inputs and sub-parts for use in manufacture of telecommunication grade optical fibre or optical fibre cables Nil Nil 2. 341 Preform of silica for use in the manufacture of telecommunication grade optical fibres or optical fibre cables 5% 5% 3. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 440 510 2402 20 40 Filter cigarettes of length exceeding 65 millimetres but not exceeding 70 millimetres 440 510 2402 20 50 Filter cigarettes of length exceeding 70 millimetres but not exceeding 75 millimetres 545 630 2402 20 90 Other cigarettes 735 850 2402 90 10 Cigarettes of tobacco substitutes 600 690 2. Central excise duty exemption is being provided on blended Compressed Natural Gas (CNG) from so much of the amount as is equal to the GST paid on Bio Gas /Compressed Bio Gas contained in such blended CNG. C. LEGISLATIVE AMENDMENTS I. Amendments in Customs Act, 1962 (i) Section 25 of the Customs Act is being amended to insert a Proviso to subsection (4A) to provide that the validity of two years shall not apply to exemption notifications issued in relation to multilateral or bilateral trade agreements; obligations under international agreements, treaties, conventions; UN agencies, diplomats, international organizations; privileges of constitutional authorities; schemes under Foreign Trade Policy or other Central Government schemes having a validity of more than two years; re-imports, temporary imports, goods imported as gifts or perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments carried out in the Finance Bill, 2023, vide clause 142 will come into effect retrospectively from 1st July, 2017. Amendments in CGST ACT, 2017: a) Clause (d) of sub-section (2) and Clause (c) of sub-section (2A) in section 10 of the CGST Act is being amended so as to remove the restriction imposed on registered persons engaged in supplying goods through electronic commerce operators from opting to pay tax under the Composition Levy. b) Second and third provisos to sub-section (2) of section 16 of the CGST Act are being amended to align the said sub-section with the return filing system provided in the said Act. c) Explanation to sub-section (3) of section 17 of the CGST Act is being amended so as to restrict availment of input tax credit in respect of certain transactions specified in para 8(a) of Schedule III of the said Act, as may be prescribed, by including the value of such transactions in the value of exempt supply. Further, sub-section (5) of said section is also being amended so as to provide that input tax credit shall not be available in respect of goods or services or both received by a taxable person, which are used or intended to be used for activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. j) Section 56 of the CGST Act is being amended so as to provide for an enabling provision to prescribe manner of computation of period of delay for calculation of interest on delayed refunds. k) A new sub-section (1B) in section 122 of the CGST Act is being inserted so as to provide for penal provisions applicable to Electronic Commerce Operators in case of contravention of provisions relating to supplies of goods made through them by unregistered persons or composition taxpayers. l) Sub-section (1) of section 132 of the CGST Act is being amended so as to decriminalize offences specified in clause (g), (j) and (k) of the said sub-section and to increase the monetary threshold for launching prosecution for the offences under the said Act from one hundred lakh rupees to two hundred lakh rupees, except for the offences related to issuance of invoices without supply of goods or services or both. m) First proviso to sub-section (1) of section 138 of the CGST Act is being amended so as to simplify the language of clause (a), to omit clause (b) and to substitute the clause (c) of said proviso so as to exclude the persons involved in offences relating to issuance of invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respective of destination of the goods, in cases where the supplier of services and recipient of services are located in India. 4. This letter only summarizes the key budgetary changes and does not have any legal force. It is only the Finance Bill and the relevant notifications that have legal force. While utmost care has been taken to clearly reflect the intention of the Government in the Finance Bill and the Notifications, the possibility of an inadvertent error cannot be ruled out. I, therefore, request you to kindly go through the Finance Bill, the Memorandum and the Notifications and bring to our notice, at the earliest, if there are any omission/error or discrepancies. You are also requested to study the budgetary changes and ensure the smooth implementation of the proposed changes keeping the convenience of the taxpayers in mind. The copies of Finance Bill, 2023, 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. 5. In case of doubt or difficulty on any issue, you are requested to bring it immediately to my notice at [email protected] or to the no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore. 19. 259 Raw materials for manufacture of security fibre and security thread for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt. Ltd, Mysore for use in manufacture of security paper 20. 260 Goods for the manufacture of orthopaedic implants falling under 902110 21. 261 Alatheon and copper wire 22. 269 Super absorbent polymer for manufacture adult diapers, tampons, sanitory pads (9619) 23. 271 Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn 24. 276 Ethylene - propylene - non-conjugated diene rubber (EPDM) for manufacture of insulated wires and cables 25. 277A Calendared plastic sheet for manufacturing of Smart Card (8523) 26. 279 Pneumatic tyres of rubber for MRO of aircraft used in scheduled air service 27. 280 Pneumatic tyres of rubber for MRO of aircraft used by training, aeroclub etc. 28. 333 Moulds, tools and dies for manufacture of parts of electronic components 29. 334 Graphite Felt or graphite pack for growing silicon ingots; Thin steel wire used in wire saw for slicing of silicon wafers 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll type of CNC machine tools falling under 8456 to 8463 54. 464 CNC Systems for use in the manufacture of CNC Lathes, Machining Centres or all type of CNC machine tools falling under 8456 to 8463 55. 467 Cash dispenser and parts thereof 56. 468 Micro ATM; fingerprint reader/scanner other than for use in manufacturing cellular mobile phones; miniaturized POS card reader for mPOS (other than Mobile Phone or Tablet Computer); parts and components for manufacture of the above items 57. 471 All parts for use in the manufacture of LED lights or fixtures including LED lamp 58. 472 All inputs for use in the manufacture of LED driver or MCPCB for LED lights and fixtures or LED lamps 59. 475 Specified goods including scramblers, descramblers, encoders, jammers, network firewall, SMS monitoring system etc 60. 476 Television equipment, cameras and other equipment for taking films, imported by a foreign film unit or television team 61. 477 Photographic, filming, sound recording and radio equipment, raw films, video tapes and sound recording tapes of foreign origin if imported into India after having been exported therefrom. 62. 478 The wirel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht for testing of (a) 86. 539A Scientific and technical instruments etc for launch vehicles and satellites and payloads 87. 540 Specified goods under heading 8802 imported by scheduled air transporter 88. 542 Specified goods imported by Aero Club, Flying Training Institutes 89. 543 Specified goods imported by non-scheduled air transporter 90. 544 Parts (other than rubber tubes) of aircraft of heading 8802 for schedule, training etc 91. 546 Parts (other than rubber tubes) of aircraft of heading 8802 by aero club/training etc 92. 548 Barges or pontoons imported along with ships 93. 549 Capital goods and spares, raw materials, parts, material handling equipment and consumables for repairs of ocean-going vessels by a ship repair unit 94. 550 Spare parts and consumables for repairs of ocean-going vessels registered in India. 95. 551 Cruise ships, Excursion ships (excluding vessels and floating structures imported for breaking up) 96. 553 Fishing vessels, Tugs and Pusher crafts, light vessels (excluding vessels and floating structures imported for breaking up) 97. 555 Vessels like warships, lifeboats (excludin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to articles supplied free under warranty as replacement for defective ones 3 46-Customs (1974) Pedagogic material for educational or vocational training courses 4 248/76- Customs Exemption to precious stones imported by posts on 'approval or return' basis 5 207/89- Customs Exemption to foodstuff and provisions, imported by foreigners 6 134/94- Customs Exemption to goods for carrying out repairs, reconditions , testing calibration or maintenance 7 147/94- Customs Exemptions to firearms & ammunition by renowned shot 8 148/94- Customs Exemptions to specified free gifts, donations, relief and rehabilitation material imported by charitable trusts, Red Cross, CARE and Govt of India 9 151/94- Customs Exemption to aircraft equipment, tanks, fuel and lubricating oils by Indian Airlines, United Arab Airlines, Indian Air Force 10 152/94- Customs Exemption to imports for handicapped person, charitable or social welfare purposes and research and education programme 11 153/94- Customs Exemption to goods for foreign origin imported for repair and return 12 39/96- Customs Imports relating to defence, internal security for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n may be referred for complete description. Annexure II Conditional /unconditional exemption entries in notification no 50/2017-customs being discontinued with effect from 31.3.2023. S. No. Entry. No. Notfn No. 50/2017 Description of goods 1. 132 Goods for manufacture of specified refractory products 2. 289 Wood in chips or particles for manufacture paper and paperboard; newsprint. 3. 397 Specified goods for use in high voltage power transmission project 4. 399 Specified goods and their parts for use in manmade or synthetic fibre or yarn industry 5. 400 Specified goods and its parts for use in textiles industry 6. 403 Parts and raw materials for manufacture of goods of off- shore oil exploration or exploitation 7. 407 Goods required for substitution of ozone depleting substances (ODS) and setting up of new capacity with non-ODS technology 8. 408 Machinery, instruments, apparatus and appliances or raw material for renovation or modernization of a fertilizer plant fertilizer plants and spare parts, consumable stores, essentials for maintenance of that plant 9. 430 Goods for use in pharmaceutical and biotechnology secto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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