TMI BlogChanges in Customs, Central Excise, GST law and rates have been proposed through the Finance Bill, 2022X X X X Extracts X X X X X X X X Extracts X X X X ..... 022-Customs (ADD) to 07/2022- Customs ADD 1st February, 2022 Customs (CVD) 01/2022-Customs(CVD) 1st February, 2022 Central Excise 01/2022-Central Excise 1st February, 2022 Central Excise (N.T.) 01/2022-Central Excise (N.T.) 1st February, 2022 Circular (Central Excise) 1082/03/2022-cx 1st February, 2022 Circular (Customs) 3/2022-customs 1st February, 2022 2. Unless otherwise stated, all changes in rates of duty will take effect from the midnight of 1st February/2nd February, 2022. A declaration has been made under the Provisional Collection of Taxes Act, 1931 In respect of clause 97 (a) of the Finance Bill, 2022 so that changes proposed therein take effect from the midnight of 1 st February/2nd February, 2022. The remaining legislative changes would come into effect only upon the enactment of the Finance Bill, 2022 or from 1st May, 2022. 3. Major highlights of the budget - i. A co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptions, conditions to exemptions, clarifications relating to applicability of SWS etc. are at Annexure A. (ii) Tarrifisation: An exhaustive exercise has been carried out for simplification of tariff structure. Unconditional concessional rates prescribed through various notifications are being moved to Tariff (First) Schedule in the Customs Tariff Act. These changes in tariff rate shall come into effect from 1st May, 2022. Accordingly, the respective entries in the concerned notifications will be omitted with effect from the 1st May, 2022. The duty rates on such item shall then operate through First Schedule of Customs Tariff Act, 1975. It may however be noted that certain rate changes in the Customs Tariff are coming into effect immediately by virtue of declaration under the Provisional Collection of Taxes Act. [The details are at Annexure B] (iii) Central Excise Changes: The changes in Central Excise Act and duty rates are at Annexure C. (iv)Legislative changes in the Customs Act, Customs Tarff Act and Rules made thereunder: a) Certain significant changes are being made in the Customs Act. The definition of 'proper officer' is being modified; officers of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he key highlights of the budgetary changes. It should not be used in any quasi-judicial or judicial proceedings. The relevant legal texts contained in the Finance Bill and notifications alone have legal force. We have taken every possible care in making the changes error free. However, inadvertent errors cannot be ruled out given the scale of the exercise. I shall be grateful if the provisions of the Finance Bill and notifications are studied carefully and feedback is provided urgently, including the issues that may need clarification. 5. It is requested that all possible efforts may be made to guide the taxpayers by holding interactive sessions/seminars for their benefit. In case of any doubt or difficulty, I would request you to kindly bring it to my notice immediately at js- tru01@gov.in or to the notice of Shri Gaurav Singh, Deputy Secretary (TRU) (Tel: 011- 2309 2753, email: gaurav.singh80@nic.in), Shri J.S. Kandhari, Deputy Secretary (TRU) (Tel: 011-2309 5526, email: js.kandhari@nic.in), Shri Syed Wasif Haider, OSD (TRU) (Tel: 011-2309 5516, email: swasif.haider@gov.in) or Shri Dibyalok, Budget Officer (TRU) (Tel: 011-2309 5547, email: dibyalok.8437@gov.in We can also be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% is prescribed on Atlantic salmon falling under heading 0302 or 0303. On review, this entry is being omitted [S. No. 2 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 30%. (2) A technical change has been made in the S. No. 6 of notification No. 50/2017- Customs to remove the condition of Specific Pathogen Free (SPF) for Live Litopennaeus vannamei Shrimp. The same shall continue to be regulated through Department of Fisheries regulations [S. No. 3 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. This change is being made effective from 02.02.2022. Further, a new dedicated tariff item 0306 36 20 for Live Litopennaeus vannamei Shrimp with a standard rate of duty of 10% is being inserted with effect from 01.05.2022 [Clause 97 (b) of the Finance Bill, 2022 refers]. Accordingly, the reference to sub heading 0306 16 or 0306 17 is being modified to heading 0306. Thus, the BCD rate on this item would operate through the Tariff with effect from 01.05.2022 and consequently entry 6 shall be omitted. (3) BCD on Live Black tiger shrimp (Penaeus monodon) (heading 0306) is being decrea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption to only Bovine Semen falling under tariff item 0511 10 00 [S. No. 5 of notification No. 02/2022 - Customs dated 1st February 2022 refers]. Consequently, all other items under this exemption entry shall attract Tariff rate as per specific CTH. This change is being made effective from 02.02.2022. With effect from 01.05.2022 the BCD rate on Bovine semen would operate through the Tariff and consequently said entry 15 shall be omitted. (9) Vide S. No. 104 of notification No. 50/2017- Customs, BCD exemption is prescribed on goods specified in List 1 of said notification, falling under any Chapter, used in processing of sea-food. On review, the said List of goods to which this entry is applicable is being revised [S. No. IV(viii) of notification No. 02/2022 - Customs dated 1st February 2022 refers]. (10) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 2 to 4 of the Table 1 in Annexure B. Chapter 6-7: No change Chapter 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 9 to 10 of the Table 1 in Annexure B. Chapter 10 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 11 to 13 of the Table 1 in Annexure B. Chapter 11 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 14, 15 of the Table 1 in Annexure B. Chapter 12 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 16, 17 of the Table 1 in Annexure B. Chapter 13 (1) Vide S. No. 50 of notification No. 50/2017- Customs, concessional BCD ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is being exempted on all goods falling under subheadings 1509 90 and 1510 90 [S. No. I (ii) of notification No. 03/2022 - Customs dated 1st February 2022 refers]. This change is being made effective from 02.02.2022. Chapter 16: No change Chapter 17 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 19 of the Table 1 in Annexure B. Chapter 18 (1) BCD on Cocoa beans, whole or broken, raw or roasted (tariff item 1801 00 00) is being decreased from 30% to 15% by inserting S. No. 91A in notification No. 50/2017 - Customs [S. No. 22 of notification No. 02/2022 Customs dated 1st February 2022 refers]. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry 91A shall be omitted. Chapter 19 (1) Vide S. No. 96 of notification No. 50/2017- Customs, concessional BCD rate of 30% is prescribed on Tapioca an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Travertine blocks; Marble slabs , falling under tariff items 2515 11 00, 2515 12 10, 2515 12 20, 2515 12 90, 2516 11 00 and 2516 12 00. On review, this entry is being omitted [S. No. 30 of notification No.2/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 40%, through the Customs Tariff. Further exemption from Social Welfare Surcharge has been granted to these items [S. No. 1. (iii) of notification No. 03/2022-Customs dated 1st February 2022 refers] (3) Vide S. No. 132 of notification No. 50/2017, concessional BCD rate of 5% is prescribed on Goods used in the manufacturing of refractory products falling under Chapters 25, 28, 38 or 39. On review, i. Clause A of this entry is being omitted with effect from 1st April, 2023. [S. No. 33(a) of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods falling under Chapters 25, 28, 38 or 39 will now attract an applicable BCD rate, with effect from 1st April, 2023. ii. Clause B of this entry where a concessional BCD rate of 5% is prescribed on Phenolic Resin is being omitted with effect from 2nd February, 2022. Consequently, these goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nil is prescribed on Materials and equipments for construction of road based on Biobased asphalt , falling under Chapter 27 or 34 or 87. On review, this entry and condition No. 14 is being omitted [S. No. 40 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract applicable BCD rate. 5) Vide S. No. 161 of notification No. 50/2017, concessional BCD rate of Nil is prescribed on Electrical energy originating from Nepal and Bhutan , falling under Tariff item 2716 00 00. On review, this entry is being omitted [S. No. 40 of notification No.2/2022 dated 1st February 2022 refers]. Exemption is available to the all goods (except alcoholic beverages, tobacco and manufactured tobacco products) imported from specified SAFTA member countries vide notification No. 99/2011- Customs dated 9th November, 2011. Therefore, Electrical energy imported from Nepal and Bhutan would be eligible for exemption from BCD under this notification. Exemption to electricity from Bhutan is also available under notification No. 40/2017-Customs dated 30th June, 2017. Therefore, this is a technical change and there will be no change in the effective rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these goods will now attract applicable BCD. 2) Vide S. No. 192 of notification No. 50/2017, concessional BCD rate of 10% is prescribed on Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as Bio-diesel , falling under Chapters 29, or 38. On review, this entry is being omitted [S. No. 55 of notification No. 02/2022-Customs dated 1st February 2022 refers]. These goods fall under Tariff item 3826 00 00 and already attract a BCD rate of 10%. This is a technical change. 3) BCD on Methyl Alcohol falling under tariff item 2905 11 00 is being decreased from 5% to 2.5% by amending S. No. 200 of notification No. 50/2017-Customs [S. No. 57 of notification No. 02/2022 dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. This change is being made effective from 02.02.2022. With effect from 01.05.2022, the BCD rate on this item would operate through the Tariff and consequently said entry 200 shall be omitted. 4) BCD on Acetic acid falling under tariff item 2915 21 00 is being decreased from 7.5% to 5% by inserting S. No. 204A in the notification No. 50/2017-Customs [S. No. 59 of notification No. 02/2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing concessional rate of 5% for bulk drugs falling under Chapters 28, 29 or 30 used in the manufacture of Poliomyelitis Vaccine or Monocomponent insulins subject to importer following IGCR Rules 2017. [S. No. 42 of notification No. 02/2022 dated 1st February 2022 refers]. 4) Vide S. No. 167 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on Lifesaving drugs, medicines, diagnostic kits or equipment and Bulk drugs used in the manufacture of lifesaving drugs or medicines falling under Chapters 28, 29, 30 or 38. On review, this entry is being rationalized and accordingly i. Entry at S. No. 167 (C) which provides exemptions to other life-saving drugs or medicines subject to the condition No. 16 has been omitted. This exemption is already available vide entry at S. No. 607 of notification No. 50/2017-Customs. ii. 39 items have been removed from the List-4. [IV(x) of Notification No. 02/2022- Customs dated 02.02.2022 refers] iii. For 2 medicines namely Poliomyelitis Vaccine (inactivated and live) and of Monocomponent Insulin, the formulations are being omitted from List-4. Further, bulk drugs for manufacture of these formulations have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... review, this entry is being omitted [S. No. 65 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 7.5%. (4) Vide S. No. 236 of notification No. 50/2017, concessional BCD rate of 5% is prescribed on All goods falling under Tariff Item 3207 40 00. On review, this entry is being omitted [S. No. 65 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 7.5%. (5) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 67, 68 of the Table 1 in Annexure B. Chapter 33 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 65 of the Table 1 in Annexure B. Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 72, 73 of the Table 1 in Annexure B. Chapter 40 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 74 of the Table 1 in Annexure B. Chapter 41 (1) Export duty is being reduced from 40% to 30% on Raw hides and skins of buffalo falling under sub-heading 4101 by inserting S. No. 38B in Notification No. 27/2011-Customs dated 1st March, 2011 with effect from 2nd February, 2022. [S. No. 2 of notification No. 10/2022-Customs dated 1st February, 2022 refers] Chapter 42 43: No change Chapter 44 (1) Vide S. No. 289 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on Wood in chips or parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er than upholstery fabrics is being equalized and the new effective BCD on these items is being prescribed by amending notification No. 82/2017-Customs dated 27th October, 2017. This notification will remain in effect till 30th April, 2021 (S. Nos. (i) to (liii) of notification No. 7/2022-Customs, dated 1st February, 2022 refers), post which the Tariff rate shall be the applicable BCD on these items. (4) Since there are certain changes in the effective rates for specified varieties of woven fabrics of Chapters 52, 54, 55 and 58, it is advisable to closely examine notification No. 82/2017-Customs dated 27th October, 2017 to identify the items on which effective rates have been equalized for upholstery and other than upholstery fabrics of Chapters 52, 54, 55 and 58. (5) While applicable rate of textile items shall comprehensively operate through Tariff w.e.f. 01.05.2022. For the period for 02.02.2022 to 30.04.2022, the rate on most of textile item shall operate through notification No. 82/2017-Customs. Accordingly, the Notification No. 82/2017-Customs is being amended to incorporate effective BCD on textile items including those on which presently the rates are prescribed vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the declaration made under Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. Chapter 67: No change Chapter 68 (1) Vide S. No. 277 of notification No. 50/2017-Customs, concessional BCD rate of 7.5% is prescribed on Mica glass tape for use in manufacture of insulated wires and cables falling under heading 8544 (falling under tariff item 6814 90 90). On review, this entry is being omitted [S. No. 73 of notification No. 2/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 10%. (2) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 86 of the Table 1in Annexure B. Chapter 69 (1) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from duty on these scrap expires, the BCD rate shall operate through tariff. [S. No. 92 of notification No. 2/2022-Customs, dated 1st February, 2022 read with Clause 97(b) of the Finance Bill 2022 refers]. (2) The following notifications imposing anti-dumping duty or countervailing duty on certain products of steel are being permanently revoked with effect from 1st February, 2022: S.N. Notification No. Product Exporting Country 1 54/2018- Customs (ADD) dated 18.10.2018 Straight length Bars and Rod of alloy Steel China PR 2 38/2019-Customs (ADD) dated 25.09.2019 High Speed Steel of Non- Cobalt Grade China PR, Brazil, Germany 3 16/2020 Customs (ADD) dated 23.06.2020 Flat rolled products of steel, (Al or Zinc coated) China PR, Vietnam, and Korea RP 4 1/2017-Customs (CVD) dated 07.09.2017 Hot rolled and cold rolled stainless steel flat products Chin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le before 1st January, 2022 on these goods. With effect from 01.05.2022 these rates shall operate through tariff. [S. No. 96 of notification No. 2/2022- Customs dated 1st February 2022 read with Clause 97(b) of the Finance Bill 2022 refers]. (2) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 98, 99 of the Table 1 in Annexure B. Chapter 82 to 83: No Change Chapter 84 (1) Vide S. No. 393 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on specific sports machinery falling under Chapter 84. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 97 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (2) Vide S. No. 394 of notification No. 50/2017-Customs, NIL BCD rate is prescribed on bacteria removing clarifier falling under Chapter 84. On review, this ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2022/ 2023. (7) Vide S. No. 400 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on goods for use in textiles industry, falling under Chapter 84 or any other chapter. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 99 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (8) Vide S. No. 403 of notification No. 50/2017-Customs, NIL BCD rate is prescribed on parts and raw materials for manufacture of goods required for off- shore oil exploration, falling under Chapter 84 or any other chapter. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 101 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (9) Vide S. No. 404 of notification No. 50/2017, concessional BCD rate of Nil is prescribed on goods imported in connection with petroleum operations , falling under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, 2023. (13) Vide S. No. 408 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on goods required for renovation, modernization or maintenance of a fertilizer plant, falling under Chapter 84 or any other chapter. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 104 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (14) Vide S. No. 409 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on goods required for setting up crude petroleum refinery, falling under Chapter 84 or any other chapter. On review, a few entries of this exemption are being omitted with effect from 1st April, 2022 [S. No. IV (xiv) of notification No. 2/2022- Customs, dated 1st February 2022 refers]. The remaining entries of this exemption would be omitted with effect from 1st April, 2023 [S. No. 104 of notification No. 2/2022- Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2022/ 2023. (15) Vide S. No. 410 of notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bruary 2022 refers]. Consequently, Consequently, these goods will attract will attract an applicable BCD rate, with effect from 1st April, 2022. (20) Vide S. No. 434 of notification No. 50/2017-Customs, concessional BCD rate of Nil/5% is prescribed on machinery for use in the silk textile industry falling under Chapter 84 or any other chapter. On review, this entry would be omitted with effect from 1st April, 2023 [S. No.111 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (21) Vide S. No. 436 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on spares for outboard motors, falling under Chapter 84 or 85. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 112 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (22) Vide S. No. 439 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on machinery used in the leather or footwear industry, falling under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication No. 50/2017-Customs, concessional BCD rate of 2.5% is prescribed on specific agricultural implements, falling under Chapter 84 or any other chapter. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 117 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (29) Vide S. No. 449 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on C-block compressors and crankshafts used in manufacture of refrigerator compressors, falling under tariff item 8414 90 11. On review, this entry is being omitted with effect from 2nd February, 2022. [S. No. 119 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 7.5%. (30) BCD on coffee roasting, brewing or vending machineries for use in the manufacturing or processing of coffee (tariff heading 8419) is being decreased from 10% to 5% by inserting S. No. 451B in notification No. 50/2017-Customs [S. No. 121 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. This change is being made ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 2/2022-Customs, dated 1st February 2022 refers]. This change is being made effective from 2nd February, 2022. (36) Vide S. No. 469 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on atmospheric water generator , falling under tariff sub-heading 8472 90 or 8473 40. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 127 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (37) Vide S. No. 470 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on machinery for making wooden fiberboards, falling under tariff item 8479 30 00. On review, this entry would be omitted with effect from 1st April, 2023 [S. No. 127 of notification No. 2/2022-Customs, dated 1st February 2022 refers]. Consequently, these goods will attract an applicable BCD rate, with effect from 1st April, 2023. (38) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NIL 5% 10% 15% 5. 8517 79 90 Display Assembly NIL NIL NIL 5% 10% 6. 8501 Vibrator Motor 10% 10% 10% 10% 10% 7. Any Chapter Parts, sub-parts, and raw materials for use in the manufacture of the S. Nos 1 to 6 above As per CTH NIL NIL NIL NIL 8. 8517 62 90 Wrist Wearable Devices (Commonly known as Smart Watches) 20% 20% 20% 20% 20% Note: IGCR conditions shall apply for the items in S. No. 1 to 7 above. [Notification No. 11/2022-Customs dated 1st February, 2022 refers] Further, Printed Circuit Board Assembly (PCBA), falling under tariff item 8517 79 10, for wrist wearable devices is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... USB Cable 10% 15% 15% 15% 15% 3. 73, 74, 85 Specified parts of hearable devices As per CTH NIL 5% 10% 15% 4. 8507 60 00/ 8507 80 00 Battery 15% NIL 5% 10% 15% 5. 8518 90 00 Speaker Assembly (Pre-assembled speaker driver with protective mesh, but not including PCBA or battery) 10% NIL NIL 5% 10% 6. Any Chapter Parts, sub-parts, and raw materials for use in the manufacture of the S. Nos 1, 3, 4, and 5 above As per CTH NIL NIL NIL NIL 7. 8518 21 to 8518 30 Hearable Devices 15% 20% 20% 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification No. 15/2022- Customs dated 1st February 2022 refers]. (7) The tariff rate on photo voltaic cells, assembled in modules or made up into panels (tariff item 8541 43 00) is being increased from 20% to 40% [Clause 97(a) of the Finance Bill 2022 refers]. By virtue of the declaration made under Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. However, the BCD rate on these goods would remain at Nil up to 31st March, 2022, vide S. No. 23 of notification No. 24/2005-Customs. The BCD on these goods will increase to 40% with effect from 1st April, 2022. However, goods under this tariff item that are used solely and exclusively with specified goods covered by notification No. 24/2005-Cusoms and 25/2005-Customs will continue to attract Nil BCD vide the newly inserted S. No. 38A of 24/2005-Customs and 32A of notification No. 25/2005-Customs [S. Nos. 2(iii) and 3(iv) of notification No. 15/2022- Customs dated 1st 0February 2022 refers]. (8) The tariff rate on all goods falling under tariff item 8541 49 00 is being increased from 20% to 40% [Clause 97(a) of the Finance Bill 2022 refers]. By virtue of the declaration ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation from 1st April, 2023. (14) Vide S. No. 431 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on specified goods for use of agro-chemical sector units falling under chapters 84, 85 or 90. On review, this entry is being omitted from 2nd February, 2022. [S. No. 108 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract duty at tariff rate. (15) Vide S. No. 450 of notification No. 50/2017-Customs, concessional BCD rate of 5% is prescribed on over load protector and positive thermal coefficient, falling under tariff item 8536 20 90 and 8539 49 00 respectively, for use in manufacture of refrigerator compressors. On review, the entry is being omitted with effect from 2nd February, 2022. [S. No. 120 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract a BCD rate of 10%. (16) Vide S. No. 479 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on specified goods including mono or bipolar membrane electrolysers, membranes and its parts, required for to caustic soda units or caustic potash units falling und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S. No. 9 of notification No. 25/2005-Customs, concessional BCD rate of Nil is prescribed for parts of line telephone handsets falling under tariff item 8518 30 00. The description of the exempted goods has been changed to line telephone handsets falling under tariff item 8518 30 00. [S. No. 3(i) of notification No. 15/2022-Customs dated 1st February 2022 refers]. (25) Vide S. No. 28 of notification No. 25/2005-Customs, concessional BCD rate of Nil is prescribed for electrical conductors for a voltage not exceeding 80 V under subheading 8544 49. The sub-heading in the exemption entry has been updated to include sub-heading 8544 42. [S. No. 3(ii) of notification No. 15/2022-Customs dated 1st February 2022 refers]. However, the exemption provided under this entry will not be applicable for USB cables (sub-heading 8544 42) for cellular mobile phones and wrist wearable devices (commonly known as smart watches). (26) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly relevant exemption entries shall be omitted w.e.f. 1.5.2022. For detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terilized dialyzer and micro-barrier of artificial kidney, respectively. On review, these entries are being omitted [S. Nos. 61 and 129 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract applicable BCD rate. (3) Vide S. No. 216A and 481A of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on raw materials, parts or accessories for use in manufacture of on artificial kidney and disposable sterilized dialyzer and microbarrier of artificial kidney, respectively. On review, these entries are being omitted [S. Nos. 61 and 129 of notification No. 02/2022-Customs dated 1st February 2022 refers]. Consequently, these goods will now attract applicable BCD rate. (4) BCD rates on specified parts of X-ray machines for medical, surgical, dental or veterinary use is being increased from 5% to 10% by amending S. No. 563A of notification No. 50/2017-Customs [S. No. 147 of notification No. 02/2022-Customs dated 1st February 2022 refers]. This change is being made effective from 1st April, 2022. (5) BCD rate on X-ray machines for medical, surgical, dental or veterinary use (tariff items 9022 14 20 or 902 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5% 10% 10% 6. 8506 50 00 Battery 10% NIL 5% 10% 10% 7. Any Chapter Parts, sub-parts, and raw materials for use in the manufacture of the S. Nos 1 to 6 above As per CTH NIL NIL NIL NIL 8. 9028 30 10 Smart Meters 15% 25% 25% 25% 25% Note: IGCR conditions shall apply for the items in S. No. 1 to 7 above. [Notification No. 13/2022-Customs dated 1st February, 2022 refers] Similarly, the tariff rate on parts and accessories for electricity meters (tariff item 9028 90 10) is being increased from 10% to 20% [Clause 97(a) of the Finance Bill 2022 refers]. By virtue of the declaration made under Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. The applicable BCD rate on parts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... now attract applicable BCD rate. (5) Vide S. No. 594 of notification No. 50/2017-Customs, concessional BCD rate of Nil is prescribed on snow-skis, water-skis, surf boards etc. On review, this entry would be omitted with effect from 1st April, 2023. Consequently, these goods will attract applicable BCD rate as per their classification from 1st April, 2023. [S. No. 153 of notification No. 02/2022-Customs dated 1st February 2022 refers]. (6) The applicable BCD rate on certain items falling under this chapter, which hitherto were prescribed through notification, are being incorporated in the First Schedule from 1.5.2022. Accordingly, relevant exemption entries shall be omitted w.e.f. 1.5.2022. For details, please refer to Sr. No. 118 of the Table 1 in Annexure B. Chapter 96 97: No change Chapter 98 (1) Concessional BCD rates extended to project imports are being phased out gradually in the following manner: S.No. Description Entry No. in Notn 50/2017- Customs BCD Rates S. No. of notification 2/2022- Customs refers Clause of the Finance Bill 2022refers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onths. Importer shall be required to follow the procedure under the Import of Goods at Concessional Rate (IGCR) Rules, 2017. The following changes are being made to the Notification 50/2017-Customs to operationalize the scheme as detailed under: i. Conditions required for availing exemptions vide S. No. 257 are being amended. ii. S. No. 257A is being inserted to provide for conditional exemptions for import of specified items like decorative papers, motifs, back of photo frames, etc. to be used in manufacture of handicraft products meant for exports. iii. S. No. 257B is being inserted to provide for conditional exemptions for import of specified items like fasteners, inlay cards, lining and inter-lining materials, wet blue chrome tanned leather, etc. to be used in manufacture of textile or leather garments meant for exports. iv. S. No. 257C is being inserted to provide for conditional exemptions for import of specified items like buckles, buttons, locks etc. to be used in manufacture of leather or synthetic footwears, or other leather products meant for exports. v. S. No. 288, having been subsumed under new S. No. 257B, is being omitted. [S. Nos 69, 70 and 75 of 2/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms dated 28.01.2004 6. 81/2005-Customs dated 08.09.2005 7. 5/2017-Customs dated 02.02.2017 8. 16/2017-Customs dated 20.04.2017 9. Serial No.2 of 32/2017-Customs dated 30.06.2017 [Notification No. 9/2022-Customs dated 01.02.2022 refers] 3. Rescission of obsolete notifications - Certain miscellaneous exemption notifications which are obsolete or whose validity had expired or which had become redundant are being rescinded. The list of such exemption notifications is as below: S.No. Notification No. Notification Subject 1. 190/1978- Customs dated 22.09.1978 These notification provides for additional duty of customs on import of transformer oil equivalent to such portion of the excise duty leviable on the raw material commonly known as transformer oil base stock or transformer oil feedstock . 2. 191/1978- Customs dated 22.09.1978 3. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. 11. 24 /2011-Customs dated 1.03.2011 This notification exempts Basic Customs Duty on copper concentrate as is equivalent to the duty of customs leviable on the value of Gold and silver contained in such copper concentrate. 12. 49 /2013-Customs dated 29.11.2013 This notification prescribed concessional rate of customs duty on import of Anti-Tuberculosis Drugs, Diagnostics and Equipment and had lapsed on 1st April, 2016. 13. 23 /2014-Customs dated 11.07.2014 This notification prescribed concessional rate of customs duty on import of Drugs equipment imported for National AIDS Control Programme and had lapsed on 1st April, 2015. 14. 37 /2015-Customs dated 10.06.2015 This notification prescribed concessional rate of customs duty on import of Anti-Retroviral Drugs (ARV Drugs) and had lapsed on 1 st April, 2016. 15. 11 /2016-Customs dated 01.03.2016 This notification prescribes concessional rate of customs duty on import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 104/2010-Customs dated 01.10.2010 YES - - 2. 38/96-Customs dated 23.07.1996 YES YES YES 3. 40/2017-Customs dated 30.06.2017 YES YES YES 4. 60/2011-Customs dated 14.07.2011 YES - - 5. 148/94-Customs dated 13.07.1994 YES YES YES [Notification no. 8/2022-Customs dated 01.02.2022 refers] ANNEXURE - B I. The following entries of notification No. 50/2017-Customs are being moved to the first schedule of Customs Tariff with effect from 1st May, 2022. Consequently, the respective entry will be omitted vide Notification No. 2/2022-Customs, dated 1.2.2022 with effect from 1st May, 2022 (column 6 of the table below refers). While the same entry will be inserted to the first schedule of Customs Tariff vide Clause 97(b) of the Finance Bill, 2022 with effect from 1st May, 2022. Applicabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 De-hulled oat grain 15% 13 15. 43 1107 10 00, 1108 12 00 All goods 30% 13 16. 45 1207 91 00 All goods 20% 13 17. 48 1209 91 or 1209 99 All goods 5% 14 18. 55 1401 10 00 Bamboo 25% 18 19. 91 1702 11 or 1702 19 All goods 25% 21 20. 97 1905 31 00 or 1905 32 All goods 30% 24 21. 106 2207 20 00 All goods 5% 26 22. 117 2309 10 00 All goods 20% 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35 40. 147 2710, 2711, 2712, 2713, 2714 or 2715 All goods (excluding naphtha), other than the goods mentioned in S.No. 150, 151, 153, petroleum coke falling under sub-heading 2713 11 or 2713 12 5% 35 41. 147A 2710 12 21, 2710 12 22, 2710 12 29 Naphtha 2.5% 35 42. 154 2711 19 10, 2711 19 20 Liquefied petroleum gases (LPG) 5% 38 43. 156 2711 12 00 Propane 2.5% 39 44. 157 2711 13 00 Butanes 2.5% 39 45. 157A 2713 12 10, 2713 12 90 Calcined Petroleum Coke 7.5% 39 46. 169 28 (except 2801, 2802, 2803, 2804, 2805, 2 809 20 10, 2810 00 20, 2814, 2823 00 10, 283 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5% 60 62. 207 2917 37 00 Dimethyl terephthalate (DMT) 5% 60 63. 208 2926 10 00 Acrylonitrile 2.5% 60 64. 210 293371 00 Caprolactam 5% 60 65. 211 2905 43 00, 2905 44 00, 3301, 3501, 3502, 3503, 3504, 3505, 3809 10 00 All goods 20% 60 66. 219 31 (except 31022100, 31023000, 31025000, 31043000, 31052000, 31053000, 31054000, 31055100, 31055900, 31056000, 31059010, 31059090) All goods 7.5% 62 67. 231 3201, 3202, 3203, 3204, 3205 00 00, 3206 (except 3206 11, 3201 20 00 and 3206 19 00) or 3207 All Goods 7.5% 64 68. 232 3201 20 00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84. 321 5501 to 5510 All goods 5% 79 85. 323 5511 All goods 10% 79 86. 338 6815 91 00, 6901, 6902, or 6903 All goods 7.5% 83 87. 342 7001 00 10 All goods 5% 84 88. 343 7015 10 10 Rough ophthalmic blanks, 5% 85 89. 344 7101 10 10 and 7101 21 00 Raw pearls 5% 86 90. 364 7110 31 00, 7110 39 00 Rhodium 2.5% 89 91. 366 7201, 7202, 7203, 7205 (excluding 7226 11 00) All goods 5% 90 92. 367 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 494 9030 31 00, 9030 90 10 All goods Note: This is a partial change to the original entry; 7.5% 133 109. 541 8802 11 00 and 8802 12 00 Helicopters 2.5% 141 110. 547 8807 10 00, 8807 20 00, 8807 30 00 All goods 2.5% 142 111. 552 8902 00 10 Trawlers and other fishing vessels Nil 143 112. 554 8905 10 00 All goods Nil 144 113. 556 8907 10 00 All goods Nil 145 114. 557 8908 00 00 All goods 2.5% 145 115. 563 9018 32 30, 9018 50 20, 9018 90 21, 9018 90 24, 9018 90 43, 9018 90 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 124. 11 2711 21 00 All goods 5% [Clause 97(b) of the Finance Bill, 2022 refers] ANNEXURE C CENTRAL EXCISE (1) Notification No. 49/2008-Central Excise (N.T.) dated 24.12.2008, provides for Retail Sale Price (RSP) based valuation for specified goods and prescribes an abatement as a percentage of retail sale price for such goods. This notification was issued under section 4A of the Central Excise Act, 1944. Accordingly, this notification has been superseded by notification No. 01/2022- Central Excise (N.T.) dated the 1st February, 2022, wherein the list to goods in the notification has been pruned to cover all such goods that are presently covered under Central Excise i.e. chewing tobacco, preparations containing chewing tobacco, Jarda scented tobacco and Pan masala containing tobacco. Further, notification has been aligned to latest provisions.{Notification No. 01/2022-Central Excise (N.T.) dated 1st February 2022 refers] (2) Circular No. 1082/03/2022-CX dated 01.02.2022 has been issued to ensure uniform implementation of Retail Sale Price ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be by the Principal Commissioner of Customs or Commissioner of Customs. This amendment has been necessitated to correct the infirmity observed by the Courts in recent judgements that the Act required explicit provision conferring powers for assignment of function to officers of Customs as proper officers for the purposes of the Act, besides the definition clause (34) in section 2 of the Customs Act. [Clause 87 of Finance Bill, 2022 refers] (4) Sub-section (4) to Section 5 is being inserted to delineate the criteria which the Board may adopt while imposing limitations or conditions under sub-section (1) or while assigning functions under sub-section (1A) to the officer of Customs. For instance, one of the limitations/ conditions that the Board currently imposes on officers of Customs is that they are required to operate within a specified territorial jurisdiction. However, with the launch of faceless assessments and other trade facilitation initiatives wherein, for instance, a need is felt for the development of industry-specific expertise in assessments the Board may need to confine jurisdiction to certain goods or class of goods. [Clause 87 of Finance Bill, 2022 refers] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose, the officer, who originally exercised such jurisdiction shall have the sole authority to exercise jurisdiction for further action like re-assessment, adjudications, etc. consequent to the completion of such inquiry, investigation, audit or any other purpose) [Clause 93 of Finance Bill, 2022 refers] (12) Section 135AA is being inserted to protect the import and export data submitted to Customs by importers or exporters in their declarations by making the publishing of such information unless provided by the law, as an offence under Customs Act. [Clause 94 of Finance Bill, 2022 refers] Other Legislative amendments pertaining to Customs: (1) A clause 96 has been inserted in the Finance Bill, 2022. This clause seeks to give validation to any action taken or functions performed before the date of commencement of the Finance Act, 2022, under certain Chapters of the Customs Act by any officer of Customs, as specified in Section 3 of the Customs Act, as amended, where such action was in pursuance of their appointment and assigning of functions by the Central government or the Board under the Customs Act. First Schedule of Customs Tariff Act, 1975 (1) Amendmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 16 of the CGST Act is being amended so as to provide for an extended time for availment of input tax credit by a registered person in respect of any invoice or debit note pertaining to a financial year upto thirtieth day of November of the following financial year. [Clause 99 of Finance Bill, 2022 refers] (2) Clause (b) and (c) of sub-section (2) of section 29 of the CGST Act are being amended so as to provide that the registration of a person is liable for cancellation, where a. a person paying tax under section 10 has not furnished the return for a financial year beyond three months from the due date of furnishing of the said return; b. a person, other than those paying tax under section 10, has not furnished returns for such continuous tax period as may be prescribed. [Clause 100 of Finance Bill, 2022 refers] (3) Sub-section (2) of section 34 of the CGST Act is being amended so as to provide for an extended time for issuance of credit notes in respect of any supply made in a financial year upto thirtieth day of November of the following financial year. [Clause 101 of Finance Bill, 2022 refers] (4) Section 37 of the CGST Act is being amended so as to: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being removed consequent to the amendment in section 38 of the CGST Act. [Clause 107 of Finance Bill, 2022 refers] (10) Consequent to the amendment in section 38 of the CGST Act, sub-section (2) of section 48 of the CGST Act is being amended so as to remove reference to section 38 therefrom. [Clause 108 of Finance Bill, 2022 refers] (11) Section 49 of the CGST Act is being amended so as to: a. provide for prescribing restrictions for utilizing the amount available in the electronic credit ledger; b. allow transfer of amount available in electronic cash ledger under the CGST Act of a registered person to the electronic cash ledger under the said Act or the IGST Act of a distinct person; c. provide for prescribing the maximum proportion of output tax liability which may be discharged through the electronic credit ledger. [Clause 109 of Finance Bill, 2022 refers] (12) Sub-section (3) of section 50 of the CGST Act is being substituted retrospectively, with effect from the 1st July, 2017, so as to provide for levy of interest on input tax credit wrongly availed and utilized. [Clause 110 of Finance Bill, 2022 refers] (13) Sub-section (6) of section 52 of the CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X
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