Indirect Tax Proposals of Union Budget 2023-24

S. No.

Amendment

Clause of the Finance Bill, 2023

1.

Section 25(4A) of the Customs Act is being amended to insert a Proviso to the effect that the validity period of two years shall not apply to exemption notifications issued in relation to multilateral or bilateral trade agreements; obligations under international agreements, treaties, conventions including with respect to UN agencies, diplomats, international organizations; privileges of constitutional authorities; schemes under Foreign Trade Policy; 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 under any law for the time being in force including integrated tax leviable under sub-section (7) of Section 3 of the Customs Tariff Act, 1975, other than duty of customs leviable under section 12.

[123]

2

A new sub section (8A) to section 127 C is being inserted so as to specify a time limit of 9 months from the date of application, for disposal of the application filed before the Settlement Commission.

[124]

S. No.

Amendment

Clause of the Finance Bill, 2023

A.

Retrospective Amendments (w.e.f. 01.01.1995)

[125]

1.

Sub-section (6) and sub-section (7) of section 9 of the Customs Tariff Act, 1975 is being amended to remove ambiguity and clarify

[125]

that determination and review for countervailing duty refers to determination and review of countervailing duty in a manner prescribed by rules under the Act.

2.

Sub-section (5) and sub-section (6) of section 9A of the Customs Tariff Act, 1975 is being amended to remove ambiguity and clarify that determination and review for anti-dumping duty refers to determination and review in a manner prescribed by rules under the Act.

[125]

3.

Section 9 C of the Customs Tariff Act, 1975 is being amended to remove ambiguity and clarify that appeals under this section lie against the determination or review thereof made by an authority in a manner as specified by rules notified under Sections 8 B, 9, 9A and 9B of the Act. It also seeks to insert an explanation to provide the meaning of determination or review thereof.

[125]

B.

Prospective Amendment

4.

The First Schedule to the Customs Tariff Act, 1975 is being amended to increase the tariff rates on certain tariff items with effect from 2.2.2023.

[126 (a)]

read with Second Schedule

5.

The First Schedule to the Customs Tariff Act, 1975 is being amended to modify the tariff rates on certain tariff items as part of rationalization of customs duty rate structure with effect from the date of assent.

[126 (b)]

Read with Third Schedule

6.

The heading 9801 of the first schedule of Customs Tariff Act, 1975 is being amended to exclude solar power plant/solar power project from the purview of Project Imports with effect from the date of assent.

7.

The First Schedule to the Customs Tariff Act, 1975 is also being amended to modify the tariff entries with effect from 1st May,2023

[126(c)]

read with Fourth Schedule

AMENDMENTS

Tariff Rate Changes

A.

Increase in Tariff rate (to be effective from 02.02.2023) * [Clause 126(a) ] of the Finance Bill, 2023]

*Will come into effect immediately through a declaration under Provisional Collection of Taxes Act,1931

Rate of Duty

S. No.

Heading, sub-heading tariff item

Commodity

From

To

Chemicals

1.

2902 50 00

Styrene

2%

2.5%

2.

2903 21 00

Vinyl Chloride Monomer

2%

2.5%

Rubber

3.

4005

Compounded Rubber

10%

25% or Rs. 30 per kg., whichever is lower

Gems and Jewellery Sector

4.

7113, 7114

Articles of precious metals

20%

25%

5.

7117

Imitation Jewellery

20% or Rs.

400 per kg., whichever is higher

25% or Rs.

600 per kg., whichever is higher

Electrical Goods

6.

8414 60 00

Electric Kitchen Chimney

7.5%

15%

Automobiles and Toys

7.

8712 00 10

Bicycles

30%

35%

8.

9503

Toys and parts of toys (other than parts of electronic toys)

60%

70%

B.

Tariff rate changes (without any changes to the effective rate of Customs Duty) [Clause 126(b)] of the Finance Bill, 2023]

Note:

In order to simplify the tax structure, number of BCD rates are being reduced. This rationalization of BCD rate structure is being carried out in a manner so as to maintain the existing incidence of duty in certain items. These changes need to be read with appropriate changes in AIDC/SWS rates

Rate of Duty

S. No.

Heading, sub-heading tariff item

Commodity

From

To

1.

4011 30 00

New or retreaded pneumatic tyres, of rubber , of a kind used on aircraft of heading 8802

3%

2.5%

2.

7107 00 00

Base metals clad with silver, not further worked than semi- manufactured

12.5%

10%

3.

7108

Gold (including gold plated with platinum) unwrought or in semi- manufactured forms, or in powder form

12.5%

10%

4.

7109 00 00

Base metals or silver, clad with gold, not further worked than semi- manufactured

12.5%

10%

5.

7110 11 10

7110 11 20

7110 19 00

7110 21 00

7110 29 00

7110 41 00

7110 49 00

Platinum, unwrought or in semi- manufactured form, or in powder form

12.5%

10%

6.

7111 00 00

Base metals, silver or gold, clad with platinum, not further worked than semi- manufactured

12.5%

10%

7.

7112

Waste and scrap of precious metal or of metal clad with precious metal; other waste and scrap containing precious metal or precious metal compounds, of a kind used principally for the recovery of precious metal other than goods of heading 8549

12.5%

10%

8.

7118

Coin

12.5%

10%

9.

8802 20 00

8802 30 00

8802 40 00

Aero planes and other aircrafts

3%

2.5%

C.

Tariff rate changes (with changes to the effective rate of Customs Duty) [Clause 126(b)] of the Finance Bill, 2023]

Rate of duty

1.

7106

Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form

12.5%

10%

A.

Changes in Basic Customs Duty (to be effective from 02.02.2023)

Rates of Duty

S. No

Chapter, Heading, sub- heading, tariff item

Commodity

From

To

Agricultural Products and By Products

1.

0802 99 00

Pecan nuts

100%

30%

2.

1504 20

Fish lipid oil for use in manufacture of aquatic feed

30%

15%

3.

1520 00 00

Crude glycerin for use in manufacture of Epichlorohydrin

7.5%

2.5%

4.

2102 20 00

Algal Prime (flour) for use in manufacture of aquatic feed

30%

15%

5.

2207 20 00

Denatured ethyl alcohol for use in manufacture of industrial chemicals

5%

Nil

6.

2301 20

Fish meal for use in manufacture of aquatic feed

15%

5%

7.

2301 20

Krill meal for use in manufacture of aquatic feed

15%

5%

8.

2309 90 90

Mineral and Vitamin Premixes for use in manufacture of aquatic feed

15%

5%

Minerals

9.

2529 22 00

Acid grade fluorspar (containing by weight more than 97% of calcium fluoride)

5%

2.5%

Petrochemicals

10.

2710 12 21,

2710 12 22,

2710 12 29

Naphtha

1%

2.5%

Gems and Jewellery Sector

11.

7102, 7104

Seeds for use in manufacturing of rough lab-grown diamonds

5%

Nil

12.

7106

Silver (including silver plated with gold or platinum), unwrought or in semi- manufactured forms, or in powder form

7.5%

10%

13.

7106

Silver Dore

6.1%

10%

IT, Electronics

14.

25, 28, 32,

39, 40, 69,

73, 85

Specified chemicals/items for manufacture of Pre-calcined Ferrite Powder

7.5%

Nil

15.

3824 99 00

Palladium Tetra Amine Sulphate for manufacture of parts of connectors

7.5%

Nil

16.

Any Chapter

Camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone

2.5%

Nil

17.

8529

Specified parts for manufacture of open cell of TV panel

5%

2.5%

Electronic appliances

18.

8516 80 00

Heat Coil for use in the manufacture of Electric Kitchen Chimneys

20%

15%

Automobiles

19.

8703

Vehicle (including electric vehicles) in Semi-Knocked Down (SKD) form .

30%

35%

20.

8703

Vehicle in Completely Built Unit (CBU) form , other than with CIF more than USD 40,000 or with engine capacity more than 3000 cc for petrol- run vehicle and more than 2500 cc for diesel-run vehicles, or with both

60%

70%

21.

8703

Electrically operated Vehicle in Completely Built Unit (CBU) form, other than with CIF value more than USD 40,000

60%

70%

22.

39,40,58,70,

72

73,83,84,85,

87,90

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 conditions

As applicable

Nil

Capital goods

23.

84, 85

Specific capital goods/machinery for manufacture of Lithium ion cell for use in battery of electrically operated vehicle (EVs)

As applicable

Nil

B.

Changes in Basic Customs Duty (without any change in the effective rate of Customs Duties i.e., BCD+AIDC+SWS)

Note:

In order to simplify the tax structure, number of BCD rates are being reduced. This rationalization of BCD rate structure is being carried out in a manner so as to

Rate of Duty

maintain the existing incidence of duty on certain items. These changes need to be read with appropriate changes in AIDC/SWS rates

S. No

Chapter, Heading, sub- heading, tariff item

Commodity

From

To

1.

2701, 2702,

2703

Coal, peat, lignite

1%

2.5%

2.

7108

Gold (including gold plated with platinum) unwrought or in semi- manufactured forms, or in powder form

12.5%

10%

3.

7108

Gold Dore

11.85%

10%

4.

7110 11 10

7110 11 20

7110 19 00

7110 21 00

7110 29 00

7110 41 00

7110 49 00

Platinum, unwrought or in semi- manufactured form, or in powder form other than those used in manufacture of noble metal compounds, noble metal solutions and catalytic converters

12.5%

10%

C.

Change in end date of exemption (No change in effective rate of duty

).

Rate of duty

S. No

S. No in Notification no 50/2017- Customs

Commodity

From

To

1

368

Ferrous waste and scrap

Nil

Nil (up to

31.03.2024)

2

374, 375

Raw materials for use in manufacture of CRGO steel

Nil

Nil (up to

31.03.2024)

3

527A

Lithium-ion cell for use in the manufacture of battery or battery pack of cellular mobile phone

5%

5%

(up to 31.03.2024)

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%

(up to 31.03.2024)

5

168

Specified inputs and sub-parts for use

Nil

Nil

in manufacture of telecommunication grade optical fibre or optical fibre cables

(up to 31.03.2025)

6

341

Preform of silica for use in the manufacture of telecommunication grade optical fibres or optical fibre cables

5%

5%

(up to 31.03.2025)

7

341A

Inputs for manufacture of Preform of silica

Nil

Nil (up to

31.03.2025)

8

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 (up to

31.03.2024)

9

340

Solar tempered glass for use in the manufacture of solar cell or solar module

Nil

Nil (up to

31.03.2024)

10

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%

(up to 31.03.2025)

11.

559

Raw material and parts (including Dredger) for use in the manufacture of ships/vessels

Nil

Nil (up to

31.03.2025)

12

166

Specified Drugs, medicines, diagnostics kits or equipment, bulk drugs used in manufacture of drugs or medicines

5%

5%

(up to 31.03.2025)

13

167

Lifesaving drugs/ medicines and diagnostic test kits, bulk drugs used in manufacture of life-saving drugs or medicines

Nil

Nil (up to

31.03.2025)

S. No.

S. No. of Notfn

Description

Extension up to 31. 03. 2024

S. No.

S. No. of Notfn

Description

1.

90

Lactose for use in the 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 Fertilisers

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

7.

165

Electrical energy supplied to DTA by 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, sanitary pads etc (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)

S. No.

S. No. of Notfn

Description

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/equipment

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 or its parts

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 /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

S. No.

S. No. of Notfn

Description

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 lamps

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; telephoto 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 and Components of Digital Still Image Video Cameras

69.

509

Parts, components and accessories for manufacture of Digital Video Recorder /Network Video Recorder (NVR) falling under 85219090 and sub-parts for manufacture of these items

S. No.

S. No. of Notfn

Description

70.

510

Parts, components and accessories for use in manufacture of reception apparatus for television and sub-parts for manufacture of these items

71.

511

Parts, components and accessories for manufacture of CCTV Camera /IP camera and sub-parts for manufacture of these items

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 used in manufacture of battery or battery pack of items other than cellular mobile phone, electrically operated vehicle 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 (except unmanned aircraft used as television camera, digital camera or video camera recorder) or its parts

81.

535A

Components or parts of aircraft for manufacture of aircraft (except unmanned aircraft used as television camera, digital camera or video camera recorder) 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 (except unmanned aircraft used as television camera, digital camera or video camera recorder) 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, apparatus etc required 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 operating scheduled air transport/air cargo services

S. No.

S. No. of Notfn

Description

91.

546

Parts (other than rubber tubes) of aircraft of heading 8802 for non- scheduled passenger/charter services, aero club, training purpose 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 such as 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, Hayness alloy-25 and polypropylene mesh required for manufacture of coronary stents / coronary stent system and artificial heart 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 manufacture of Cochlear Implants

107.

579

Survey (DGPS) instruments, 3D 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

S. No.

S. No. of Notfn

Description

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

S. No.

S. No. of Notfn.

Subject

1.

609

Used bonafide personal and household effects of a deceased person

S. No.

Notification No.

Subject

1

16-Customs dated 23.1.65

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

S. No.

Notification No.

Subject

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 publicly 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 Special 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 Assistanceprogram 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

1

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.

2

33/2017-

Customs

Exemption to import of challenge cups and trophies won by a unit of Defence Force or its members.

3

146/94-

Customs

Exemption to imports by specified sports goods imported by National Sports Federation or by a Sports person of outstanding eminence for training.

4

90/2009-

Customs

Exemption to imports from Antarctica of goods used for or related to Indian Antarctic Expedition or Indian Polar Science Programme.

S.

No.

Notification No.

Subject

1.

Notification No. 22/2022-

Customs, dated 30.04.2022

The India-UAE CEPA Tariff notification is being amended as a consequential change to rationalization of basic customs duty rate structure.

2.

Notification No. 57/2000-

Customs, dated 08.05.2000

This notification relating to jewellery export promotion is being amended consequent to changes in import duty structure on Gold and increase in duty rate of Silver.

3.

Notification No. 146/94-

Customs, dated 13.07.1994

Benefit of the existing exemption notification No. 146/94-Customs, dated 13.07.1994, is being extended w.e.f. 02.02.2023 to imports of ‘Warm Blood horse’ when imported by Sportsperson of eminence for training.

S. No.

S. No. of Notfn

Description

1.

S. No. 16 of 50/2017- Customs

This exemption entry pertaining to ‘Human Embryo’ is being withdrawn as it is redundant on account of prohibition of import of Human Embryo under the Assisted Reproductive Technology (Regulation) Act, 2021 and The Surrogacy (Regulation) Act, 2021. [notification No. 22/2015-20 dated 20th July, 2022 of DGFT refers]

2.

S. No. 325 of 50/2017- Customs

This exemption entry pertaining to ‘Monofilament Yarn’ is being withdrawn as tariff rate is also at 5% and hence redundant

3.

48/2017-

Customs

Exemption to catering cabin equipment, food and drinks on re- importation by aircrafts of the Indian Airlines Corporation from foreign flights is being withdrawn.

A.

AMENDMENT TO NOTIFICATION NO. 11/2018 – CUSTOMS, DATED 02.02.2018 (w.e.f. 02.02.2023)

S. No.

Description

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 in 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 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 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 in Notification No. 50/2017-Customs dated the 30th June,2017

B.

RESCINDING OF NOTIFICATION RELATING TO SWS

These notifications are being rescinded on account of being redundant due 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 30thJune, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 487(E), dated the 30thJune, 2022

Notification No. 11/2021 – Customs, dated 01.02.2021 is being amended to revise the AIDC rates on the following goods (w.e.f. 02.02.2023):

A.

AIDC rate changes (with changes to the effective rate of Customs Duty)

Rate of Duty

S. No

Chapter, Heading, sub- heading, tariff item

Commodity

From

To

1.

7106,98

Silver (including silver plated with gold or platinum), unwrought or in semi- manufactured forms, or in powder form

2.5%

5%

2.

71

Silver Dore

2.5%

4.35%

B.

Changes to AIDC (without any change to the effective rate of Customs Duty)

Rate of Duty

S. No

Chapter, Heading, sub- heading, tariff item

Commodity

From

To

1.

2701, 2702,

2703

Coal, peat, lignite

1.5%

Nil

2.

40113000

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.

7108 or 98

Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form

2.5%

5%

4.

71

Gold Dore

2.5%

4.35%

5.

7110

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.

8802 20 00

8802 30 00

8802 40 00

Aero planes and other aircraft covered under S.No. 543A of Notification No. 50/2017-Cus

Nil

0.5%

The Seventh Schedule to the Finance Act, 2001 is being amended w.e.f. 02.02.2023* to revise the NCCD rates on specified cigarettes under HS 2402 as detailed below:[Clause 153 read with Sixth Schedule of the Finance Bill, 2023]

Tariff item

Description

Unit

NCCD Rates

(in Rs. per thousand)

From

To

(1)

(2)

(3)

(4)

(5)

2402 20 10

Other than filter cigarettes, of length not exceeding 65 millimetres

Tu

200

230

2402 20 20

Other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 70 millimetres

Tu

250

290

2402 20 30

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetres

Tu

440

510

2402 20 40

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetres

Tu

440

510

2402 20 50

Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres

Tu

545

630

2402 20 90

Other

Tu

735

850

2402 90 10

Cigarettes of tobacco substitutes

Tu

600

690

Amendment

Notification No. 05/2023-Central Excise dated 01.02.2023 is being issued to exempt excise duty on blended Compressed Natural Gas (CNG) from so much of the amount as is equal to GST paid on biogas /compressed bio gas contained in such blended CNG subject to the specified conditions.

S.

No.

Amendment

Clause of the Finance Bill, 2023

1.

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.

[128]

2.

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.

[129]

3.

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.

[130]

4.

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 that persons for compulsory registration in terms of sub section (1) of section and section 22 of the Act need not register if exempt under sub section (1) of section 23.

[131]

5.

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.

[132]

6.

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.

[133]

7.

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.

[134]

8.

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.

[135]

9.

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.

[136]

10.

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.

[137]

11.

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.

[138]

12.

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.

[139]

13.

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.

[140]

14.

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 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.

[141]

15.

Schedule III of the CGST Act is being amended to give retrospective applicability to Para 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.

[142]

S. No.

Amendment

Clause of the Finance Bill, 2023

1.

Clause (16) of section 2 of the IGST Act is being amended so as to revise 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.

Also, clause (17) of the said section is being amended to revise the definition of "online information and database access or retrieval services" to remove the condition of rendering of the said supply being essentially automated and involving minimal human intervention.

[143]

2.

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.

[144]