Key Highlights of Union Budget 2023-24:Indirect Taxes:PART G

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PART G

• Number of basic customs duty rates on goods, other than textiles and agriculture, reduced to 13 from 21.

• Minor changes in the basic custom duties, cesses and surcharges on some items including toys, bicycles, automobiles and naphtha.

• Excise duty exempted on GST-paid compressed bio gas contained in blended compressed natural gas.

• Customs Duty on specified capital goods/machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs) extended to 31.03.2024 Customs duty exempted on 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.

• Customs duty on camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone reduced to zero and concessional duty on lithium-ion cells for batteries extended for another year.

• Basic customs duty reduced on parts of open cells of TV panels to 2.5 per cent.

• Basic customs duty on electric kitchen chimney increased to 15 per cent from 7.5 per cent.

• Basic customs duty on heat coil for manufacture of electric kitchen chimneys reduced to 15 per cent from 20 per cent.

• Denatured ethyl alcohol used in chemical industry exempted from basic customs duty.

• Basic customs duty reduced on acid grade fluorspar (containing by weight more than 97 per cent of calcium fluoride) to 2.5 per cent from 5 per cent.

• Basic customs duty on crude glycerin for use in manufacture of epicholorhydrin reduced to 2.5 per cent from 7.5 per cent.

• Duty reduced on key inputs for domestic manufacture of shrimp feed.

• Basic customs duty reduced on seeds used in the manufacture of lab grown diamonds.

• Duties on articles made from dore and bars of gold and platinum increased.

• Import duty on silver dore, bars and articles increased.

• Basic Customs Duty exemption on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode continued.

• Concessional BCD of 2.5 per cent on copper scrap is continued.

• Basic customs duty rate on compounded rubber increased to 25 per cent from 10 per cent or 30 per kg whichever is lower.

• National Calamity Contingent Duty (NCCD) on specified cigarettes revised upwards by about 16 per cent.

• Customs Act, 1962 to be amended to specify a time limit of nine months from date of filing application for passing final order by Settlement Commission.

• Customs Tariff Act to be amended to clarify the intent and scope of provisions relating to Anti-Dumping Duty (ADD), Countervailing Duty (CVD), and Safeguard Measures.

CGST Act to be amended

• To raise the minimum threshold of tax amount for launching prosecution under GST from one crore to two crore;

• To reduce the compounding amount from the present range of 50 to 150 per cent of tax amount to the range of 25 to 100 per cent;

• Decriminalize certain offences

• To restrict filing of returns/statements to a maximum period of three years from the due date of filing of the relevant return/statement

• To enable unregistered suppliers and composition taxpayers to make intra-state supply of goods through E-Commerce Operators (ECOs).