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TMI BlogChanges in Customs, Central Excise, GST law and rates have been proposed through the Finance (No.2) Bill, 2024X X X X Extracts X X X X X X X X Extracts X X X X ..... stoms duty and AIDC on imports of crude soyabean oil and 'crude sunflower seed oil subject to availability of unutilized quota in TRQ authoriiation for FY 2022-23 allotted by DGFT and Bill of lading issued on or before 31st March,2023; (iv) through Clause 108 read with the Fifth Schedule, amendment has been proposed in Notification No. 12/2012- Central Excise dated 17.3.2012 to extend the timeline to submit the final Mega Power Certificate ; (v) through Clause 109 read with the Sixth Schedule, exemption from Clean Environment Cess has been proposed on excisable goods lying in stock as on 30.6.2017 on which appropriate GST Compensation Cess has been paid on supply of such goods or after 1.7.2017. The changes proposed through sub -clause (a) of Clause 107 will take effect on the midnight of 23rd/24th July ,2024 by virtue of a declaration under The Provisional Collection of Taxes Act, 2023. The other changes proposed in the Bill would come into effect on the enactment of the Bill or from the date specified in the Finance (No.2) Bill. 3. Changes have also been proposed in the CGST Act , IGST, Act, UTGST Act and GST (Compensation to States) Act 2017, through Clauses 110 to 146 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been increased from 7.5% to 10%. b) The tariff rate of CTH 3920 and 3921 has been increased to 15%. Consequently, from 24.7.2024 , PVC Flex Films/Flex Banners will attract 25% by virtue of declaration under Provisional Collection of Taxes Act 2023. However, Notification No 50/2017-Customs has been amended to maintain the existing rate of 10% on items other than PVC Flex Films/Flex Banners. (5). Drugs The BCD has been fully exempted on the following Cancer Drugs: (i) Trastuzumab Deruxtecan (ii) Osimertinib (iii) Durvalumab (6). Textile and Leather Sector a) The BCD has been reduced from 7.5% to 5% on MDI for manufacture of spandex yarn to rectify duty inversion. This is subject to IGCR condition . b) The BCD has been reduced from 30% to 10% on Real Down Filling material from duck or goose for use in manufacture of textile or leather garments for export. c) Exemption has been extended to Wet white leather, Crust and finished leather for manufacture of textile or leather garments, leather /synthetic footwear or other leather products for export. d) Exemption has been extended to certain additional accessories and embellishments for manufacture of textile or leather garments, leat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified capital goods has been added to the list of exempted goods for use in manufacture of solar cells and modules . b) Certain specified goods have been added in the exemption entry (S.No 404 of Notification no 50/2017-customs) for use in petroleum exploration operations (11). Others a) The BCD on Garden umbrella has been revised from 20% to 20% , whichever is higher (The duty rate is effective from 24.7.2024 by virtue of declaration under Provisional Collection of Taxes Act 2023) b) The BCD rate on Lab chemicals classified under HS 9802 00 00 has been increased from 10% to 150% (The duty rate is effective from 24.7.2024 by virtue of declaration under Provisional Collection of Taxes Act 2023) c) The tariff rate on areca nuts and prepared/ preserved areca nuts is being enhanced to 150% w.e.f 1.10.2024. However, there is no change in the effective BCD rate which continues at 30%. ( 12). Export duty The effective export duty structure on Raw hides, skins and leather have been simplified and rationalized as under: S. No. Commodity Rate of duties From To 1 Raw Hides skins, all sorts (other than buffalo) 40% 40% 2 Raw Hides skins of buffalo 30% 30% 3 Raw fur and skins including lamb fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods (other than those under export promotion schemes) exported under warranty from 3 years to 5 years, further extendable by 2 years. Similarly, Notification No. 153/94-Customs dated 13 July 1994 has been amended to extend the time limit for export from 6 months to 1 year, further extendable by 1 year, in the case of aircraft and vessels imported for maintenance, repair and overhauling. V. LEGISLATIVE AMENDMENTS a) Amendments in Customs Act, 1962 (i) Section 28 DA is being amended to enable the acceptance of different types of proof of origin provided in trade agreements in order to align the said section with new trade agreements which provide for self-certification. (ii) A proviso to sub-section (1) of Section 65 is being inserted to empower the Central Government to specify certain manufacturing and other operations in relation to a class of goods that shall not be permitted in a warehouse. (iii) Section 143AA of the Customs Act is being amended to substitute the expression a class of importers or exporters with a class of importers or exporters or any other persons to facilitate the trade. (iv) Clause (m) of subsection (2) of section 157 of the Customs Act is being amended by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the 30th day of November, 2021 b) with respect to cases where returns have been filed after revocation: The time limit to avail input tax credit in respect of an invoice or debit note, in cases where returns for the period from the date of cancellation of registration/ effective date of cancellation of registration till the date of revocation of cancellation of the registration, will be extended till the date of filing the said GSTR-3B return, subject to certain conditions, if the said return is filed by the registered person within thirty days of the order of revocation of cancellation of registration. 4) Section 74A is being inserted in the CGST Act to provide a common time limit for issuance of demand notices and orders in respect of demands for FY 2024-25 onwards, for cases involving charges of fraud, suppression of facts or wilful misstatement and the cases not involving the charges of fraud, suppression of facts or wilful misstatement etc. Also, the time limit for the taxpayers to avail the benefit of reduced penalty, by paying the tax demanded along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mands up to FY 2023-24. 12) Second proviso may be inserted in section 30(2) of the CGST Act to provide for enabling clause to prescribe conditions and restrictions for revocation of cancellation of registration. 13) Clause (f) of section 31 of CGST Act is being amended to provide for an enabling provision to prescribe the time period within which the invoice has to be issued by the recipient under reverse charge mechanism and to clarify that a person registered solely for purpose of deducting TDS under section 51 of CGST Act shall be treated as a person not registered for the purpose of clause (f) of section 31(3) of the said Act. 14) Section 39 is being amended to mandate filing of returns by TDS deductors for every month, even if no deductions are made during the said month, and also to provide for an enabling clause for prescribing the time limit for filing these returns. 15) Section 54 of CGST Act and section 16 of IGST Act is being amended to prohibit refund of unutilized input tax credit or of integrated tax on zero-rated supply of goods which are subjected to export duty. 16) Sub-section 1A is being inserted in section 70 of the CGST Act to provide for appearance by an autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sit payable for filing appeal before appellate authority from rupees fifty crores to rupees forty crores of integrated tax. Further, it proposes to reduce the maximum amount payable as pre-deposit for filing appeal before the Appellate Tribunal from rupees hundred crores to rupees forty crores of integrated tax. c) Amendments in the UT GST Act, 2017 (i) Sub-section (1) in Section 7 in the UTGST Act is being amended, so as to not levy union territory tax on Extra Neutral Alcohol used for manufacture of alcoholic liquor for human consumption. (ii) Section 8A in the UTGST Act is being inserted, so as to empower the Government to regularize non levy or short levy of union territory tax where it is found that such non levy or short levy was a result of general practice. d) Amendment in the GST (COMPENSATION) Act, 2017 Section 8A is being inserted in the GST (Compensation) Act, so as to empower the Government to regularize non levy or short levy of cess where it is found that such non levy or short levy was a result of general practice. 6. This above contents only summarizes the key budgetary changes and does not have any legal sanctity. It is only the Finance (No.2) Bill, upon its enact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ean-going vessels 11. 550 Spare parts and consumables for repairs of ocean going vessels registered in India. (ii) Standalone Notifications SN Notification No Brief Description 1 16/1965-Customs dated 23 January 1965 Exemption to goods exported to foreign countries for display in show-rooms of Govt of India 2 80/1970-Customs 29 August 1970 Goods supplied freely under warranty as replacement for defective ones in lieu of earlier imported goods. 3 207/89-Customs dated 17 July 1989 Foodstuffs and provisions (excluding fruit products, tobacco, alcohol) by foreigners 4 147/94-Customs dated 13 July 1994 Firearms and ammunition when imported for use by a renowned shooter 5 148/94-Customs dated 13 July 1994 Specified gifts; goods gifted free under a bilateral agreement; goods imported by Indian Red Cross Society, goods for the purposes of relief and rehabilitation 6 152/94-Customs dated 13 July 1994 Appliance/aids for blind/handicapped imported by institution for blind deaf; and other specified teaching aids imported by Govt Universities 7 153/94-Customs dated 13 July 1994 Articles for foreign origin imported for repair and return, theatrical equipment and costumes, mountaineering expediti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplied from SEZ to DTA 9. 172 Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module 10. 183 Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals 11. 184 Pharmaceutical Reference Standard 12. 188 Goods for manufacture of ELISA Kits 13. 191 Maltol for manufacture of deferiprone 14. 204 Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide 15. 253 Specified Goods for manufacture of Brushless Direct Current (BLDC) motors 16. 257 Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters 17. 257A Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter 18. 258 Security fibre, threads, Paper based Taggant,M-feature for use in manufacture of security paper by Security Paper Mill, Hoshangabad 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. 261 Raw material for manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r use in the manufacture of washcoat for catalytic converters 47. 417 Cerium compounds for use in the manufacture of washcoat for catalytic converters 48. 418 Zeolite for for use in the manufacture of washcoat for catalytic converters 49. 422 Machinery, electrical equipment for use in semiconductor wafer and LCD 50. 423 Machinery, electrical equipment for use in marking and packaging of semiconductor chips 51. 426 Specified goods for the manufacture of semiconductor devices, memory card, IC, solar cell 52. 435 Capital goods for printing industry 53. 442 Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India 54. 446 Parts and components for manufacture of tunnel boring machines 55. 451 Evacuated tubes with three layers of solar selective coating for use in manufacture of solar water heater 56. 462 Ball screws for use in the manufacture of CNC Lathes 57. 463 Linear Motion Guides for use in the manufacture of CNC Lathes 58. 464 CNC Systems for use in the manufacture of CNC Lathes 59. 464A Goods for manufacture of plastic processing machineries 60. 467 Parts and components of cash dispenser or automatic bank note disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led air transporter 90. 542 Specified goods imported by Aero Club, Flying Training Institutes 91. 543 Specified goods imported by non-scheduled air transporter 92. 544 Parts (other than rubber tubes), of aircraft of heading 8802 93. 546 Parts (other than rubber tubes), of aircraft of heading 8802 94. 548 Barges or pontoons imported along with ships 95. 551 Cruise ships, Excursion ships 96. 553 Fishing vessels, Tugs and Pusher crafts, light vessels excluding vessels and floating structure imported for break up 97. 555 Vessels like warships, lifeboats excluding vessels and floating structure imported for break up 98. 567 Stainless steel tube and wire, for manufacture of Coronary stents /artificial valve 99. 569 Parts required for manufacture of Ostomy products 100. 570 Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof 101. 575 Specified Hospital Equipment for use in specified hospitals 102. 578A Raw materials, for the manufacture of Cochlear Implants 103. 580 X-Ray Baggage Inspection Systems and parts thereof 104. 581 Portable X-ray machine / system 105. 583 Parts and cases of braille watches, for the manufacture of Braille watch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 Exemption on gold and silver produced out of copper anode slime which were exported out of India for toll smelting and processing 9 32/1997-Customs dated 1st April 1997 Exemption to goods imported for execution of an export order for jobbing Annexure III THE EXEMPTIONS WHICH ARE BEING LAPSED ON THE END DATE OF 30TH SEPTEMBER 2024: (i) Entries under 50/2017-Customs S. No SN of 50/2017Customs Description 1 478 Wireless apparatus, accessories and parts as specified in List 29 imported by a licensed amateur radio operator 2 353 Foreign currency coins when imported into India by a Scheduled Bank 3 387 Zinc metal recovered by toll smelting or toll processing from zinc concentrates exported from India for such processes 4 441 Spinnerettes made inter alia 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 India 5 238 Organic/inorganic Coating material for manufacture of electrical steel 6 254 Catalyst for manufacture of cast components of Wind Operated Electricity Generator 7 255 Resin for manufacture of cast components of Wind Operated Electricity Generator 8 277A Calendared plastic sheet for ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /accessories and peripherals received as donation by schools, charitable institutions. 3 102/2007-Customs dated 14 September 2017 Provides exemption from Special Additional Duty (SAD) levied vide section 3(5) of CTA on to all goods imported for subsequent sale when IGST, CGST, SGST or UTGST paid by importer. 4 45/2005-Customs dated 16 May 2005 Provides exemption from Special Additional Duty levied under Section 3(5) of CTA on goods cleared from SEZ to DTA. 5 151/94-Customs dated 13 July 1994 Provides exemption to imports of duty-paid fuel and lubricating oil on aircrafts taken during the outward flight; goods imports by United Arab Airlines; aircraft engines, spares imported by Indian Airlines and Air India International. Re-import entries will operate from re-import notification 45/2017-Cus 6 26-Customs dated 19th February 1962 Provides exemption from import duty under the Sea Customs Act on catering cabin equipment, food and drink on re-importation by aircrafts of the Indian Airlines Corporation from foreign flights Annexure-IV Removal of end-date S.No Notification No Brief Description 1 49/2017-Customs dated 30 June 2017 Exemption to special Additional Duty on specified goods of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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