Quick Summary
Custom duty structure to be overhauled, over 400 old exemptions to be reviewed Customs duty hiked proposed on some mobile parts, auto parts and cotton Phased manufacturing plan for Solar Cells / Panels to be notified AIDC Cess proposed in the Union Budget to improve Agricultural Infrastructure Taxation changes proposed to benefit MSMEs With an aim to rationalize custom duty structure, ease compliance and give impetus to domestic manufacturing, the Union Budget 2021-22 has several
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
The government is deploying deep analytics and Artificial Intelligence to identify tax evaders and fake billers, and is launching special drives against them. The capacity of the GSTN system has also been enhanced.
Over 400 old customs duty exemptions will be reviewed, and a revised structure free of distortions will be put in place from October 1, 2021. New exemptions will have a validity of two years.
Yes, some exemptions on parts of mobile phone chargers will be withdrawn, and certain mobile parts will move from a 'NIL' rate to a moderate 2.5% customs duty.
The budget proposes to increase duties on steel screws, plastic builder wares, and prawn feed to 15%. It also rationalises exemptions on duty-free items for exporters of garments, leather, and handicraft items.
An AIDC is proposed on a small number of items, including gold, silver, alcohol beverages, crude palm oil, and cotton, with the aim of not placing additional burden on consumers for most items.
Customs duty on steel scrap will be exempted until March 31, 2022. Duties on copper scrap will be reduced from 5% to 2.5%, and duty on certain auto parts will be raised to 15%.
CAclubindia
