|
BUDGET
NOTES 2023-2024 |
|
v Budget
2023-2024 Circular from TRU, Department of Revenue [D.O.F.No.334/03/2023-TRU
dated 1 February 2023] Annex
A – Customs Annex
B – Central Excise Annex
C – Legislative Amendments Annex
D – IGST Act,
2017 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 Annexure II ; Conditional /unconditional exemption
entries in notification
no 50/2017-customs being discontinued with effect from
31.3.2023. |
Text of TRU Letter
The Finance Minister has introduced the Finance Bill, 2023 in Lok Sabha today, that is 1st February, 2023. Amendments have been proposed
through clauses 123 and 124 of the Bill to the
Customs Act, 1962, through clauses
125, 126 and 127 ofthe Bill to the Customs
Tariff Act, 1975 and through clause
153 of the Bill to section 136 ofthe Finance
Act, 2001. The changes proposed through clause 126 (a) and clause 153 have been given immediate effect
through a declaration under the Provisional Collection of Taxes Act, 1931. The other changes proposed in the Bill would
come into effect upon its enactment on the date of assent of the Bill 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 pati 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- calibrated while maintaining the existing
incidence of customs duties on gold, gold dore, platinum, coal, peat and lignite. Similarly,
the BCD and AIDC on aircraft (other than those
at Nil or 2.5%) &
aircraft tyres (other than those at Nil) are being re-calibrated while maintaining
the same incidence of duty. These
changes will
also be effective from, 2nd February,2023
through the relevant notifications.
II. Duty
rate changes
1. Chemicals and petrochemicals:
a)
The BCD on denatured ethyl alcohol is being reduced from 5% to Nil for
use in the manufacture of
industrial chemicals through IGCR route.
b) The BCD on acid grade fluorspar (containing by weight more than 97% of calcium fluoride) is
being
reduced from
5% to 2.5%.
c)
The
BCD on crude glycerin is being
reduced from 7.5% to 2.5% for
use in manufacture of
epichlorohydrin through IGCR route.
d) The BCD on Naphtha is
being increased
from 1% to 2.5%.
e) The BCD on styrene is
being increased
from 2 % to 2.5%.
f)
The
BCD on Vinyl Chloride monomer is being increased from 2% to 2.5%.
2. Precious Metals
a) The import duty on Dore and bar of gold and platinum were enhanced in June and October 2022 respectively. While maintaining the existing incidence of import duty on these items, the
BCD rate and AIDC rates are being recalibrated.
The import duty on silver bar and
silver
Dore is however being enhanced.
The changes are
as follows:
|
Commodity |
BCD |
AIDC |
SWS |
Total duty |
|||
|
|
From |
To |
From |
To |
From |
To |
|
|
Gold Bars |
12.50% |
10% |
2.50% |
5.00% |
Nil |
Nil |
15% |
|
Gold Dore |
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 use in
manufacture of rough lab grown diamond is being reduced
to Nil subject to IGCR condition for a period
of two years.
b) The BCD on certain 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 kitchen chimney is being reduced
from 20% to 15% subject to IGCR condition.
6. Automobiles
a)
Exemption
from BCD is being provided to vehicles, specified
automobile parts/components, sub-systems and tyres, when imported by notified testing
agencies for
the purpose of testing and/ or certification, subject
to
specified conditions.
b) The BCD on vehicle (including electric vehicles) in Semi-Knocked Down (SKD) form is being increased
from 30% to 35%. However,
it is being exempted from
SWS
c) The BCD on vehicles in Completely-Built Unit
(CBU) form
is being increased from 60% to 70%.
However, it is being exempted from
SWS.
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 withdrawn.
g)
The
BCD on Warm blood horse imported by sports person of outstanding eminence for training purpose for equestrian sports is being reduced from 30% to Nil subject to
conditions.
9. Social welfare surcharge (SWS)
The following
goods are being exempted from levy of Social Welfare Surcharge in order to maintain the total effective duty owing to rationalization
of basic customs duty rate structure:
|
1. |
Silver
(HSN 7106), Gold ( HSN 7108) & Imitation
Jewellery (HSN
7117) |
|
2. |
Platinum (HSN 7110) other than
rhodium and goods covered under S. Nos. 415(a) and 415A of the Table annexed 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. 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. |
|
8. |
Toys and parts of toys (HSN 9503) other than goods covered under S. No. 591of
the Table annexed to Notification 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 1st 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 1st February, 2021 |
|
2 |
No. 34/2022-Customs, dated the 30th , 2022, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 487(E), dated
the 30th , 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. |
Silver
Dore |
2.5% |
4.35% |
Note:
Description
of entries is indicative, notification
may
be referred for
complete description.
(b) Changes to AIDC
(without any change to
the
effective rate
of customs
duty)
|
S. No |
Commodity |
From |
To |
|
1. |
Coal, peat,
lignite |
1.5% |
Nil |
|
2. |
New pneumatic
tyres,
of rubber , of a kind used on
aircraft as
mentioned in Entry 280 A of
Notification No. 50/2017-Cus |
Nil |
0.5% |
|
3. |
Gold bar |
2.5% |
5% |
|
4. |
Gold Dore |
2.5% |
4.35% |
|
5. |
Platinum
other than rhodium and goods covered
under S. Nos. 415(a) and 415A
of the Table in notification No. 50/2017-Customs, dated the 30th June, 2017. |
1.5% |
5.4% |
|
6. |
Aero planes and other aircraft covered under S.No. 543A of Notification No.
50/2017-Cus |
Nil |
0.5% |
Note:
Description
of entries is indicative,
notification may be referred for complete description.
11. Review of Exemptions
Out of 196 exemptions, 146 exemptions are being extended for a period of one year i.e. up to
31.3.2024 for the purpose of
undertaking review. Of the remaining, a few are being extended
for five years, two years and one year while some exemption entries are being
discontinued with effect
from 31.3.2023.
The details of exemption entries/ notifications extended by five years, two years and one year are as follows:
|
S. No |
S.No.in Notification No 50/2017- Cus/ Notification
No |
Commodity |
From |
To |
|
Extended by five
years upto 31.3.2028 |
||||
|
1. |
S. No 609 of
50/2017- Customs |
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. |
341A |
Inputs for manufacture of
Preform of silica |
Nil |
Nil |
|
4. |
405, 406 |
Raw materials and parts for manufacture of
Wind operated electricity generators, including permanent
magnets for manufacture
of PM synchronous generators above
500KW for use in wind operated
electricity operators |
5% |
5% |
|
5. |
559 |
Raw material and parts (including Dredger)
for use in the manufacture of ships/vessels |
Nil |
Nil |
|
6. |
166 |
Specified Drugs, medicines, diagnostics kits |
5% |
5% |
|
7. |
167 |
Lifesaving drugs etc |
Nil |
Nil |
|
Extended by one year upto 31.3.2024 |
||||
|
1. |
368 |
Ferrous
waste and scrap |
Nil |
Nil |
|
2. |
374,375 |
Raw materials for use in manufacture of CRGO steel |
Nil |
Nil |
|
3. |
527A |
Lithium-ion cell for use in the manufacture
of battery or battery pack of cellular mobile phone |
5% |
5% |
|
4. |
527B |
Lithium-ion cell for use in the manufacture
of battery or battery pack
of electrically
operated vehicle
(EVs) or hybrid motor vehicle |
5% |
5% |
|
5. |
237 |
Specified inputs for use in the manufacture of EVA sheet or back sheets which are used in the manufacture of
solar
cell or modules |
Nil |
Nil |
|
6. |
340 |
Solar tempered glass
for use in the manufacture of
solar cell or solar
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 |
200 |
230 |
|
2402 20 20 |
Other than
filter cigarettes,
of length exceeding 65 millimetres
but not exceeding 70
millimetres |
250 |
290 |
|
2402 20 30 |
Filter
cigarettes of length not exceeding
65 millimetres |
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 personal baggage; any
duty
of customs imposed under any
law in force including integrated tax leviable under sub-section 7 of
Section 3 of the Customs Tariff Act, 1975, other than under Section 12 of the Customs Act;
(ii) Section 127 C of the Customs Act is being amended to insert sub section (6) to specify
a time limit of
9 months from the date of
application, for
disposal of the application filed
before the Settlement
Commission.
II. Amendments in Customs Tariff Act,
1975
(i)
Sections 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 tariff items as part of rationalization of customs duty rate structure.
Wherever there are increase in duty rates, they would come into effect from 2.2.2023 and
the others would come into effect from
the
date of assent of
the Bill.
(v) The Second Schedule is being amended to align the entries under heading 1202 with that of the First Schedule. These changes would come
into effect from 1.5.2023.
III. Amendments
in CGST and IGST
Acts
Amendments
carried out in the Finance Bill, 2023 except those
in clause 142 will come
into
effect from the date when the same will be
notified concurrently, as far as possible,
with the corresponding amendments to the similar Acts passed by the States & Union
territories with legislature. Amendments
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 relating to his obligations under corporate social responsibility referred
to in section 135 of the Companies
Act, 2013.
d) Sub-section (1) and sub-section (2) of section 23 of the CGST Act are being amended, with retrospective effect from 01st July, 2017, so as to provide
overriding effect to the said
section over sub-section
(1) of section
22 and section 24 of the said
Act.
e)
A new sub-section (5) in section 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.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 registered person
or a
class of registered persons.
h) A new sub-section (15) in section 52 of the CGST Act is being
inserted so as to provide a time limit upto which the statement under sub-section (4) of the said section for a month
can
be furnished by
an
electronic commerce operator. Further, it seeks to provide an
enabling provision for extension of the said time limit, subject to certain conditions and
restrictions, for an electronic commerce
operator
or a class of electronic commerce operators.
i)
Sub-section (6) of section 54 of the CGST Act is being amended so as to remove the
reference to the provisionally accepted input tax credit to align the same with the present
scheme of availment of self-assessed input tax credit as per sub-section (1) of section 41
of the said Act.
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
invoices without supply
of goods or services or both from the option of compounding of the offences under the said Act. It further seeks to amend sub-section (2) so as to rationalize
the amount for compounding of various offences by reducing the minimum as well as maximum amount for compounding.
n) A new section 158A in the CGST Act is being inserted so as to provide for prescribing
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 thedetails 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 1st 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 1st July, 2017 to 31st
January, 2019, no refund of such
tax paid
shall be available.
D. 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, industry
or any other business or profession so as to provide for taxability
of OIDAR service provided by any person
located
in non-taxable territory to
an unregistered person receiving the said services and located in the taxable territory. Further, it also seeks
to clarify
that the persons registered solely
in terms of clause (vi) of Section 24 of CGST
Act shall be treated as
unregistered person for the purpose of
the said clause.
Further, clause (17) of the said section is being
amended to amend the definition
of “online information and database access or retrieval services” to remove
the condition of rendering
of the said supply as it is essentially automated and involves minimal human intervention.
b) Proviso to sub-section (8) of section 12 of the IGST Act is being omitted so as to specify
the place of supply,
irrespective of
destination
of the goods,
in cases where
the supplier of services
and
recipient of services are located in India.
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 |
Excess Liquefied petroleum gases (LPG) returned by DTA unit
to SEZ unit |
|
6. |
164 |
Electrical energy
supplied to DTA by
power plants of 1000MW or above ,got
approval |
|
7. |
165 |
Electrical energy supplied to DTA from power plant
less than 1000MW |
|
8. |
183 |
Medical use
fission Molybdenum-99 (Mo-99) for use in manufacture of radio
pharmaceutical |
|
9. |
184 |
Pharmaceutical
Reference Standard |
|
10. |
188 |
Specified goods
for manufacture of ELISA
Kits |
|
11. |
204 |
Anthraquinone or 2-Ethyl Anthraquinone, for use in manufacture of Hydrogen Peroxide |
|
12. |
212A |
Medicines/drugs/vaccines supplied free by United
Nations International
Children's Emergency Fund (UNICEF), Red Cross or an International
Organization |
|
13. |
213 |
Drugs and
materials |
|
14. |
238 |
Organic or
inorganic coating material for
manufacture
of electrical
steel |
|
15. |
253 |
Goods for manufacture of Brushless Direct
Current (BLDC) motors |
|
16. |
254 |
Catalyst for manufacture
of cast components of Wind Operated Electricity Generator |
|
17. |
255 |
Resin
for manufacture of cast
components of Wind Operated Electricity Generator |
|
18. |
258 |
Security fibre, security threads, Paper based taggant including M-feature
for 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. |
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. |
339 |
Toughened glass
for
solar thermal collectors
or heaters |
|
31. |
353 |
Foreign currency coins when imported into India by a Scheduled
Bank |
|
32. |
364A |
Spent catalyst
or ash containing precious
metals |
|
33. |
378 |
Metal parts for manufacture of electrical insulators falling under heading
8546 |
|
34. |
379 |
Pipes and tubes for use in manufacture of
boilers |
|
35. |
380 |
Forged steel rings for manufacture of special bearings for use in wind operated electricity generator |
|
36. |
381 |
Flat copper wire for use in the manufacture of photo voltaic ribbon for solar
cell/modules |
|
37. |
387 |
Zinc metal recovered by
toll smelting or toll processing
from zinc concentrates exported
from India for such processes |
|
38. |
392 |
Dies for drawing metal, when imported after repairs in exchange of similar
worn out
dies
exported out for repairs |
|
39. |
415 |
Parts/inputs for manufacture of
catalytic convertors |
|
40. |
415A |
Platinum or Palladium for manufacture
of all goods including Noble Metal Compounds & Noble Metal Solutions falling under 2843
and goods of
heading 381512 |
|
41. |
416 |
Ceria
zirconia compounds for use in the manufacture of washcoat for
catalytic converters |
|
42. |
417 |
Cerium
compounds for use in the manufacture of washcoat for
catalytic converters |
|
43. |
418 |
Zeolite for use
in the manufacture of
washcoat for
catalytic converters |
|
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 India |
|
52. |
462 |
Ball screws for use in the manufacture of
CNC Lathes,
Machining Centres
or all type of CNC machine tools falling under 8456
to 8463 |
|
53. |
463 |
Linear
Motion Guides for use in the manufacture
of CNC Lathes, Machining Centres or
all 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 wireless apparatus, parts imported by a licensed amateur radio operator |
|
63. |
480 |
Goods imported for
being tested in specified test
centers |
|
64. |
482 |
Newspaper
page, transmission
and reception facsimile system or equipment; telephone
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 |
Specified
Parts,
components and subparts for use
in manufacture of Lithium-ion battery and battery pack |
|
73. |
512A |
Inputs ,parts or subparts for manufacture
of PCBA of Lithium ion battery and
battery pack |
|
74. |
515A |
Open cell for use in manufacture of LCD and LED TV panels of heading 8524 |
|
75. |
516 |
Specified goods for
use in the manufacture of Liquid Crystal
Display (LCD) and LED TV panel |
|
76. |
519 |
Raw materials or parts for use
in manufacture of e-Readers |
|
77. |
523A |
Parts, sub-parts, inputs or raw material for use in manufacture of Lithium ion cells |
|
78. |
527 |
Lithium
ion cell use
in manufacture of battery or battery pack of
items
other than cellular mobile,
EV or Hybrid motor vehicle |
|
79. |
534 |
Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes
of gliders) |
|
80. |
535 |
Raw materials for manufacture of
aircraft or its parts |
|
81. |
535A |
Components or parts of aircraft for manufacture of aircraft or
for manufacture of parts of aircraft imported by PSUs under Ministry of Defence |
|
82. |
536 |
Parts, testing
equipment, tools and tool-kits for maintenance, repair, and
overhauling of
aircraft or
its parts |
|
83. |
537 |
All goods
of Heading 8802 (except
88026000-spacecraft) |
|
84. |
538 |
Components or parts, including engines,
of aircraft
of heading 8802 |
|
85. |
539 |
(a) Satellites and payloads; (b) Ground equipments
brought 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 (excluding vessels and floating structures
imported for breaking up) |
|
98. |
565 |
Specified goods for use in the manufacture of Flexible Medical Video Endoscope |
|
99. |
566 |
Polypropylene, Stainless-steel Strip
and stainless
steel capillary tube for
manufacture of syringes, needles, catheters and cannulae |
|
100. |
567 |
Stainless steel tube and wire, cobalt chromium tube etc for manufacture of Coronary stents /artificial valve |
|
101. |
568 |
Parts and components required for manufacture of Blood Pressure Monitors and blood glucose monitoring
system (Glucometers) |
|
102. |
569 |
Ostomy products,
its accessories and parts required for manufacture of such
medical equipment |
|
103. |
570 |
Medical and surgical instruments, apparatus
and appliances including spare
parts and accessories thereof |
|
104. |
575 |
Hospital Equipment (excluding consumables) for use in specified hospitals |
|
105. |
577 |
Lifesaving medical equipment including accessories or spare parts or both
of such equipment for personal
use |
|
106. |
578A |
Raw materials, parts
or accessories for
the manufacture of Cochlear Implants |
|
107. |
579 |
Survey (DGPS) instruments, 3 D modeling software cum equipment for
surveying and prospecting of
minerals |
|
108. |
580 |
X-Ray Baggage Inspection Systems and parts thereof |
|
109. |
581 |
Portable X-ray machine
/ system |
|
110. |
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 |
Notification No. |
Subject |
|
1 |
16-Customs
(1965) |
Exemption to
goods exported to foreign countries for display in show-rooms of Govt of India |
|
2 |
80/1970- Customs |
Exemption 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 forces&
air forces |
|
13 |
50/96- Customs |
Exemption to
specified equipment,
instruments, raw material etc
imported for R&D projects |
|
14 |
51/96- Customs |
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/components
for initial setting up of
non- conventional power generation plants |
|
21 |
102/2007- Customs |
Exemption from
Special
CVD to all goods imported for
subsequent sale
when IGST, CGST, SGST
or UTGST paid by importers. |
|
22 |
26/2011- Customs |
Exemption to
work of art, antiques
in museum or art gallery imported for
public exhibition |
|
23 |
23/2016- Customs |
Effective rates for parts of
aircraft imported under the Standard
Exchange Scheme |
|
24 |
05/2017- Customs |
Exemption to machinery, components
for setting up fuel
cell based
power generation plant. |
|
25 |
16/2017- Customs |
Exemption to
specified drugs & medicines
supplied free of
cost to patients under
Patient Assistance program of Pharma Companies |
|
26 |
29/2017- Customs |
Exemption to
specimen, models, wall pictures and diagrams
for instructional purposes |
|
27 |
30/2017- Customs |
Exemption to motion
picture, music, gaming software for use in gaming console printed or
recorded on media |
|
28 |
32/2017- Customs |
Exemption to
art work created
abroad by Indian artist,
sculptor, antiques
books more than 100 years |
|
29 |
37/2017- Customs |
Imports relating to
defence &
internal security forces |
|
30 |
49/2017- Customs |
Exemption to
special Additional
Duty on specified
goods of fourth schedule
to Central Excise Act |
|
31 |
52/2017- Customs |
Effective rate
of Additional duty for goods under Chapter
27 |
Note:
Description of entries is
indicative,
notification 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 sector for
R &D |
|
10. |
432 |
Specified goods
for use in the textile
industry |
|
11. |
434 |
Specified
machinery and capital goods
for use in the silk
textile industry |
|
12. |
436 |
Spares,
supplied with outboard motors
for maintenance of such outboard motors |
|
13. |
448 |
Specified
advance capital goods/machinery used
in agriculture |
|
14. |
460 |
Shuttle less
looms and parts/components for its manufacturing |
|
15. |
513 |
Parts
or components for use in
manufacture of
populated printed circuit board of
DVR, NVR,CCTV camera |
|
16. |
393 |
Machinery/Capital goods for manufacturing sports goods |
|
17. |
394 |
Bacteria removing
clarifier |
|
18. |
395 |
Machinery/ Capital goods
used in Fisheries sector |
|
19. |
409 |
Goods required for setting up
crude petroleum
refinery |
|
20. |
439 |
Specified
machinery/capital goods
in leather / footwear
industry |
|
21. |
440 |
Fogging Machines
imported by Municipal Committee,
District Board to combat
Malaria etc |
|
22. |
444 |
Geothermal ground
source heat pumps |
|
23. |
445 |
Machinery/Capital goods for making Gems &
Jewellery |
|
24. |
455 |
Goods specified
under
8422 3000, 8422 4000 or 8422 9090 in packaging
Industry |
|
25. |
458 |
Machineries
under
8438 used in food 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 |
48/2017-Cus |
Exemption to
catering cabin
equipment, food and drinks on re-importation by
aircrafts of
the Indian Airlines
Corporation from foreign flights |
Indian Airlines
Corporation is no longer in existence |
Note: Description
of entry is indicative, notification may be referred
for
complete description.