Budget 2023 : CBIC exempt CNG from the duty of excise leviable on amount of GST

Last updated: 01 February 2023

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The Central Government has announced an exemption from excise duty for Compressed Natural Gas (CNG) when it is blended with Biogas or Compressed Biogas (CBG). This exemption applies to the portion of duty attributable to the Biogas or CBG content within the blended CNG. The new rule comes into effect from 2nd February 2023 and requires manufacturers to maintain detailed records and submit reconciliation statements quarterly.

GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 05/2023-Central Excise Dated : 1st February, 2023 G.S.R. (E). In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the Excise Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts Compressed Natural Gas (hereinafter referred to as CNG), falling under ta

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3499

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FAQ :

Compressed Natural Gas (CNG) when blended with Biogas or Compressed Biogas (CBG) is being exempted from excise duty.

The exemption applies to the duty of excise leviable on the amount of central tax, state tax, union territory tax, or integrated tax paid on the Biogas or CBG contained within the blended CNG.

Yes, manufacturers must maintain detailed records of the quantum and value of Biogas or CBG blended, submit a certified reconciliation statement quarterly, and pay any short-paid duty with interest after reconciliation.

This notification comes into force on the 2nd day of February, 2023.

The notification has been issued by the Government of India, Ministry of Finance (Department of Revenue).

Notification No : 05/2023-Central Excise
Source : https://www.indiabudget.gov.in/doc/cen/cen0523.pdf

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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