BUDGET 2022 – GST, Customs, Excise Duty Highlights

• Goods required for renovation, modernization or maintenance of a fertilizer plant will see a withdrawal of exemptions or concessions from 01.04.2023

• Specific agricultural implements and parts used for their manufacture will see a withdrawal of exemptions or concessions from 01.04.2023

• Asafoetida is reduced to 5% (effective 15% reduction) and Cocoa beans to 15%.

• Methyl Alcohol & Acetic Acid sees a reduction by 2.5%

• Microbial fats and oils and their fractions will see an increase of BCD to 100%

• An exhaustive list of goods for which BCD exemption was notified in notification No. 50/ 2017 have been withdrawn.

· Some goods will see a withdrawal of exemptions or concessions from 01.04.2022 and some others from 01.04.2023

· Effluent treatment plants will see a withdrawal of exemptions or concessions from 01.04.2022 and 292 goods specified in List 27 to notification No. 50/2017- Customs from 01.04.2023.

· Textiles under Chapters 60, 61 & 62 will see a reduction in BCD up to 5%, and the BCD calculation based on rate per square metre is removed.

· Nil rate on Iron and steel scrap extended till 31.03.2023

· An exhaustive list of goods for which BCD exemption was notified in notification No. 50/ 2017 have been withdrawn.

ADD is permanently revoked for imports of:

· Straight Length Bars and Rods of alloy-steel from China.

· High Speed Steel of Non-Cobalt Grade from China, Brazil or Germany

· Flat rolled product of steel, plated or coated with alloy of Aluminum or Zinc from China, Vietnam, Korea.

CVD is permanently revoked for imports of certain Hot Rolled and Cold Rolled Stainless Steel Flat Products originating from China.

· In case of goods other than above and used for the purpose of initial setting up of power generation project or fuel cell-based system for generation of power, then concessional BCD will be withdrawn from 01.04.2023.

· Geothermal ground source heat pumps will see a withdrawal of exemptions or concessions from 01.04.2023

· For Project imports of coal, nuclear, gas, and solar projects registered till 30.09.2022 will attract old BCD rates till 30.09.2023, and 7.5% BCD for all others from 30.09.2022.

· An exhaustive list of goods for which BCD exemption was notified in notification No. 50/ 2017 have been withdrawn.

· An exhaustive list of goods for which BCD exemption was notified in notification No. 50/ 2017 have been withdrawn.

· BCD on cut & polished diamonds and natural gemstones have been reduced to 5%

· An exhaustive list of goods for which BCD exemption was notified in notification No. 50/ 2017 have been withdrawn.

· BCD rationalization of Parts or components for use in manufacture of populated printed circuit board of various telecom and electronics related products, and its sub-parts except DVR/NVR, CCTV and reception apparatus has been made.

· Exemptions / Concessions for those goods not already omitted in 25/1999-Customs and capital goods list in 25/2002-Customs will be withdrawn from 01.04.2024

· Various goods imported for manufacture of wearable devices, hearable devices, smart meters, will be levied BCD in a phased manner as part of the Phased Manufacturing Program.

o Blended Motor Spirit with ethanol/methanol

o Blended High-Speed Diesel with Bio-diesel

· Health Cess on Surgical needles imported for manufacture of surgical sutures to be reduced to ‘nil’.

· Exemption on goods used for Research and Development purpose in pharmaceutical and bio- technology sector have an end-date of 31.03.2023

· Concessional rate of 5% on 35 items of Drugs, medicines, diagnostic kits, or equipment specified in List 3 and List 4 of notification no. 50/ 2017 and bulk drugs used in the manufacture of drugs or medicines above have been rationalized.

· Concessional rate for drugs supplied free-of-cost to patients in 16/2017-Customs notification will be withdrawn from 01.04.2023.

· An exhaustive list of goods for which BCD exemption was notified in notification No. 50/ 2017 have been withdrawn.