Friday , September 21 2018

Loksabha Witnessed Bill to Amend Customs and Excise Acts Launch

Finance Minister Arun Jaitley introduces Amendment bills including customs, excise acts in Lok Sabha

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Today, Loksabha witnessed the introduction of a bill to revise the customs and excise acts to match with the newly introduced GST regime by the Finance Minister Arun Jaitley.

The bill would be revised according to the customs Act 1962, the Customs Tariff Act 1975, the Central Excise Act 1944, the Finance Act, 2001 and the Finance Act, 2005 and to cancel certain enactments. This needs to bed done within days of the Lok Sabha passing four GST legislations.

The Customs Act would include ‘warehouse’ in the definition of “customs area” which will make certain that importers would not be paying  is not asked to pay Integrated Goods and Services Tax (IGST) while removing goods from a customs station to a warehouse.

The GST bill will also eliminate the cess levied on industrial and local authorities water usage (prevention and control of Pollution) which is the Cess Act 1977.

The GST is scheduled to be introduced with effect from the July 1, 2017. The four legislations of the Central GST Bill 2017, the Integrated GST Bill 2017, the Union Territory GST Bill, 2017 and The GST (Compensation to States) Bill, 2017 are also in the process of enactment.

The taxable services include central excise duty on goods. But the excise duty on other items like crude oil, petrol, diesel, ATF and natural gas is not included.  Service tax on certain services and VAT on selling or buying  items will be included in the GST.

“Therefore, it requires certain consequential amendments in the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise act, 1944, the Finance Act 2001 and the Finance Act 2005 and repeal of certain enactments,” the statement of objects and reasons for the bill stated.

The amendment will be providing levy of IGST and GST Compensation Cess on imported items.

Moreover, many more amendments are anticipated to make in the excise act with cetain definitions, charging sections, deemed production units and inclusion of emergency powers to boost the rate of duty.

 

 

 

 

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