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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 ..... or from the date specified in the Finance Bill. Changes have also been proposed 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11.85% 10 % 2.50% 4.35% Nil Nil 14.35% Platinum 12.50% 10% 1.50% 5.40% 1.40 Nil 15.40% Silver Bar 7.50% 10% 2.50% 5.00% 0.75 Nil 15% Silver Dore 6.10% 10% 2.50% 4.35% 0.61 Nil 14.35% b) The import duty on articles made of precious metals falling under CTH 7113 7114 is being increased from 22% to 25%. It is however being exempted from SWS. c) The import duty on imitation jewellery classified under Heading 7117 is being increased from 22% or Rs. 400/kg, whichever is higher to 25% or Rs. 600/kg, whichever is higher . It is however being exempted from SWS. 3. Export Promotion: a) The BCD on seeds for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Capital Goods a) Customs duty exemption is being provided to import of specified capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles as is available for manufacture of lithium-ion cells for batteries used in mobile handsets.(S.No 69 of Notification no 25/2002 -Customs ) 8. Others a) The BCD on bicycles is being increased from 30% to 35%. However it is being exempted from SWS. b) The BCD on toys and its parts is being increased from 60% to 70%. However it is being exempted from SWS . There are no changes to the effective rate on parts covered under S. No 591 of Notification No. 50/2017-Customs. c) The BCD on aircraft (other than those at Nil or 2.5%) and aircraft tyres (other than those at Nil) is being reduced from 3% to 2.5% but they will attract AIDC of 0.5%. d) The BCD on coal, peat and lignite is being increased to 2.5% but these are being exempted from AIDC. e) The BCD on compounded rubber is being increased from 10% to 25% or Rs. 30/kg whichever is lower . f) The BCD on pecan nuts is being reduced from 100% to 30%. The SWS exemption is being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 50/2017-Customs dated the 30th June,2017 The following notifications are being rescinded on account of being redundant owing to basic customs duty rate structure rationalization: 1 No. 13/2021-Customs, dated the 1 st February, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 71(E), dated the 1 st February, 2021 2 No. 34/2022-Customs, dated the 30 th June, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 487(E), dated the 30 th June, 2022 Note: Description of entries is indicative, notification may be referred for complete description. 10. Agriculture Infrastructure and Development Cess (AIDC) (a) AIDC rate changes (with changes to the effective rate of customs duty) S. No Commodity From To 1. Silver bar 2.5% 5% 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar module Nil Nil Note: Description of entries is indicative, notification may be referred for complete description. In addition, there are 146 conditional exemptions covered by Notification no 50/2017-Customs and standalone notifications that are also being extended up to 31.3.2024 for the purpose of undertaking review during the year which is at Annexure -I . The list of conditional /unconditional exemption entries under notification no 50/2017-customs and standalone notification discontinued with effect from 31.3.2023 is at Annexure -II . B CENTRAL EXCISE 1. The Seventh Schedule of the Finance Act, 2001 is being amended to revise the specific rates of National Calamity Contingent Duty (NCCD) levied as duty of excise on specified cigarettes w.e.f. 2nd February, 2023 as follows: Tariff Item Description of goods From (Rs per 1000 sticks) To (Rs per 1000 sticks) 2402 20 10 Other than filter cigarettes, of length not exceeding 65 millimetres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ections 9, 9A, 9 C of the Customs Tariff Act are being amended to clearly amplify the intent and scope of these provisions. They are also being validated retrospectively with effect from 1st January 1995. (ii) The First Schedule to the Customs Tariff Act, 1975 is being amended to introduce new tariff lines or modify existing tariff lines. The proposed changes are in chapter 3, chapter 4, chapter 9, chapter 10, chapter 12, chapter 13, chapter 19, chapter 27, chapter 29, chapter 31, chapter 38, chapter 39, chapter 48, chapter 52, chapter 54, chapter 57, chapter 61, chapter 62, chapter 63, chapter 69, chapter 71, chapter 84, chapter 85, and chapter 87. Changes which does not involve change in rate of duty would come into effect from 1.5.2023. (iii) The General explanatory note to the General Rules for interpretation of the Schedule is being amended to carry out some changes which inter alia, include changes to align the abbreviations and the tariff with complementary amendments to the HS 22. These changes would come into effect from 1.5.2023. (iv) The First Schedule to the Customs Tariff Act, 1975 is also being amended to modify the tariff rates on certain tari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 37 of the CGST Act is being inserted so as to provide a time limit upto which the details of outward supplies under sub-section (1) of the said section for a tax period can be furnished by a registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a registered person or a class of registered persons. f) A new sub-section (11) in section 39 of the CGST Act is being inserted so as to provide a time limit upto which the return for a tax period can be furnished by a registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a registered person or a class of registered persons. g) A new sub-section (2) in section 44 of the CGST Act is being inserted so as to provide a time limit upto which the annual return under sub-section (1) of the said section for a financial year can be furnished by a registered person. Further, it also seeks to provide an enabling provision for extension of the said time limit, subject to certain conditions and restrictions, for a regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manner and conditions for sharing of the information furnished by the registered person in his return or in his application of registration or in his statement of outward supplies, or the details uploaded by him for generation of electronic invoice or E-way bill or any other details, as may be prescribed, on the common portal with such other systems, as may be notified. o) Schedule III of the CGST Act is being amended to give retrospective applicability to paras 7, 8 (a) and 8(b) of the said Schedule, with effect from 01st July, 2017, so as to treat the activities/ transactions mentioned in the said paragraphs as neither supply of goods nor supply of services. It is also being clarified that where the tax has already been paid in respect of such transactions/ activities during the period from 01st July, 2017 to 31st January, 2019, no refund of such tax paid shall be available. IGST Act, 2017: a) Clause (16) of section 2 of the IGST Act is being amended so as to amend the definition of non-taxable online recipient by removing the condition of receipt of online information and database access or retrieval services (OIDAR) for purposes other than commerce, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inally, I take this opportunity to personally thank my each and every member of my team and each one of you on behalf of my team for your suggestions/inputs and look forward to your comments/feedback. With regards Yours Sincerely, (Limatula Yaden) Joint Secretary (TRU-I) Annexure I Conditional exemptions entries in Notification no 50/2017-Customs extended for one year, i.e. upto 31.3.2024 to be taken up for review this year S. No. S. No. of Notfn Description Extension up to 31. 03. 2024 1. 90 Lactose for use in manufacture of homeopathic medicine 2. 133 Gold ores and concentrates for use in manufacture of Gold 3. 139 Specified bunker Fuel for use in ships or vessels 4. 150 Goods of Heading 2710 or 271490 for manufacture of Fertilizers 5. 155 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44. 419 Aluminium Oxide for use in the manufacture of washcoat for catalytic converters 45. 420 Clay 2 Powder (Alumax) for use in ceramic substrate for catalytic convertors 46. 421 Goods required for basic telephone service/ internet service and their parts 47. 426 Specified goods for the manufacture of goods falling under 8523 5200, 8541, 8542, 8543 9000 or 8548 00 00 48. 428 Specified goods imported by accredited press cameraman 49. 429 Specified goods, imported by accredited journalist 50. 435 Capital goods/ Machinery for printing industry 51. 441 Spinnerettes made interalia of Gold, Platinum and Rhodium or any one or more of these metals, when imported in exchange of worn out or damaged spinnerettes exported out of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e transmission and reception system or equipment 65. 489B Specified goods for manufacturing of microphones 66. 495 Batteries for electrically operated vehicles, including two and three wheeled electric motor vehicles 67. 497 Active Energy Controller (AEC) for use in manufacture of Renewable Power System (RPS) inverters 68. 504 Parts, Components of Digital Still Image Video Cameras 69. 509 Parts, components and accessories for manufacture of Digital Video Recorder /Network Video Recorder (NVR) 70. 510 Parts, components and accessories for use in manufacture of reception apparatus for television and sub-parts 71. 511 Parts, components and accessories for manufacture of CCTV Camera /IP camera and sub-parts 72. 512 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, Excur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 583 Parts and cases of braille watches, for the manufacture of Braille watches 111. 593 Parts of video games for the manufacture of video games 112. 607 Specified Life Saving drugs/medicines including medicines for Spinal Muscular Atrophy or Duchenne Muscular Dystrophy, for personal use 113. 607A Lifesaving drugs/medicines for personal use supplied free of cost by overseas supplier 114. 611 Archaeological specimens, photographs, plaster casts or antiquities for exhibition for public benefit in a museum managed by ASI or by State Govt. 115. 612 Specified raw material for sports goods Note: Description of entries is indicative, notification may be referred for complete description. B. Standalone Customs exemption notifications extended for one year , upto 31.3.2024 to be taken up for review this year S. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Exemption to research equipment by publically funded and research institutions ,Govt. Dept., laboratory, IIT etc 15 25/98- Customs Effective rate of duty for goods of Chapter 70,84,85 or 90 16 97/99- Customs Exemption to Gold bars under Gold Deposit Scheme of RBI 17 113/2003- Customs Exemption to castor oil cake and castor de-oiled cake manufactured from indigenous castor oil seeds on indigenous plant and machinery by unit in SEZ and brought to DTA 18 30/2004- Customs Exemptions to second-hand computers/accessories received as donation by schools, charitable institutions 19 45/2005- Customs Exemption from Spl. Additional duty of Customs to goods cleared from SEZ and brought to any other place in India 20 81/2005- Customs Exemption to machinery/compon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otfn 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, apparat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processing industry 26. 461 Specified textile Machinery specified under 8444,8445,8446,8447,8448 (except 84483100), 8449 27. 469 Atmospheric Water Generator 28. 470 Presses for manufacturing of particle board or fibre building board of wood or other ligneous material and other machinery for treating wood or cork 29. 594 Snow Ski and other snow ski equipment; water-skis, surf boards, sailboards and other water sports equipment 30. 16 Human Embryo 31. 325 Monofilament yarn Note: Description of entries is indicative, notification may be referred for complete description. Standalone notification being discontinued with effect from 31.3.2023. S. No. Notification No. Subject Justification 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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