Central Excise duty changes Indian Union Budget 2021-22

 

Indian Union Budget 2021-22, Central Excise changes   

 

Central Excise Duty changes under Indian Budget 2021-22

 

 

EXCISE

 

 

 

Note:   (a) “Basic Excise Duty” means the excise duty set forth in the Fourth Schedule to the Central Excise Act, 1944.

 

(b)    “Road and Infrastructure Cess” means the additional duty of central excise levied under section 112 of the Finance Act, 2018.

 

(c)   “Special Additional Excise Duty” means a duty of excise levied under section 147 of the Finance Act, 2002.

 

(d)  “NCCD” means National Calamity Contingency Duty levied under Finance Act, 2001, as a duty of excise on specified goods at rates specified in seventh schedule to Finance Act, 2001

 

(e)      Clause Nos. in square brackets [ ] indicate the relevant clause of the Finance Bill, 2021.

 

(f)    Amendments carried out through the Finance Bill, 2021 come into effect on the date of its enactment, unless otherwise specified.

 

 

  1. I.     AMENDMENT IN THE FOURTH SCHEDULE

 

 

S.No.

Amendment

Clause [ ] of the

 

 

Finance Bill, 2021

 

 

 

1.

Amendment in Fourth Schedule made by Notification

 

 

No. 08/2019-CE (T) dated 31.12.2019 shall be made

[98]

 

effective w.e.f. 01.01.2020, retrospectively.

 

 

 

 

2.

New tariff items [2404 11 00] and [2404 19 00] inserted

 

 

in Chapter 24 in the fourth Schedule of the Central

 

 

Excise   Act,   1944   accordance   with   upcoming

[96 (ii)]

 

Harmonised   System   2022   Nomenclature   and   to

 

 

 

prescribe tariff rate of 81% on these tariff items with

 

 

effect from 01.01.2022.

 

 

 

 

 

 

  1. II.                Retrospective amendment in Chapter 27 of the Fourth Schedule to the Central Excise Act, 1944.

 

No.

Amendment

Clause of the Finance

 

 

Bill, 2021

 

 

 

1.

(i) It is proposed to specify correct IS “17076” against

[97 (i)]

 

the tariff item 27101249 and made effective from

 

 

 

 

 

 

 

98

 

 

 

 

 

01.01.2020, retrospectively.

 

 

 

 

2.

(ii) It is proposed that tariff rate of 14%+ Rs. 15.00 per

 

 

litre against tariff item 2710 20 10 and 2710 20 20 may

[97 (ii) and 97 (iii)]

 

be prescribed and made effective from 01.01.2020,

 

 

 

retrospectively.

 

 

 

 

 

 

  1. III.             Amendment in Chapter 27 of the Fourth Schedule to the Central Excise Act,

 

1944.

 

 

Tariff items 2709 10 00, 2709 20 00, and the entries are being substituted relating thereto as under: [to be made effective from 01.04.2021] [Clause [96(i)] of the Finance Bill, 2021]

 

Tariff Item

Description of goods

Unit

Rate of duty

 

 

 

 

2709

Petroleum oils and oils obtained

 

 

 

from bituminous minerals, crude

 

 

 

 

 

 

2709 00 10

petroleum crude

Kg.

Nil

 

 

 

 

2709 00 20

other

Kg.

…..

 

 

 

 

 

 

IV. IMPOSITION OF AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS (AIDC) ON PETROL AND DIESEL

 

An Agriculture Infrastructure and Development Cess (AIDC) as an additional duty of excise has been proposed on Petrol and High speed diesel vide Clause [116] of the Finance Bill, 2021. This cess shall be used to finance the improvement of agriculture infrastructure and other development expenditure. The details of the cess are as under:

 

 

S. No.

Commodity

Rate of AIDC [Clause [116] of the

 

 

Finance Bill, 2021]*

 

 

 

1

Motor spirit commonly known as petrol

Rs. 2.5 per litre

 

 

 

2

High speed diesel

Rs. 4 per litre

 

 

 

 

*Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

 

 

V. CHANGE IN EFFECTIVE RATE OF BASIC EXCISE DUTY AND SPECIAL ADDITIONAL EXCISE DUTY ON PETROL AND DIESEL [to be effective from 02.02.2021]

 

Consequent to imposition of AIDC, the Basic Excise Duty (BED) and Special Additional Excise Duty (SAED) on Petrol and High-speed diesel is being reduced so that consumer does

 

99

 

 

 

not have to bear any additional burden on account of imposition of AIDC. The revised duty structure on petrol and HSD shall be as follows.

 

 

A

Item

BED

SAED

AIDC

 

 

(Rs/Ltr)

(Rs/Ltr)

(Rs/Ltr)

 

 

 

 

 

1

Petrol (unbranded)

1.4

11

2.5

 

 

 

 

 

2

Petrol (branded)

2.6

11

2.5

 

 

 

 

 

3

High speed diesel (unbranded)

1.8

8

4

 

 

 

 

 

4

High speed diesel (branded)

4.2

8

4

 

 

 

 

 

 

 

VI. EXEMPTIONS FOR M-15, E-20 AND OTHER BLENDED FUELS

 

 

 

S. No.       Amendment to central excise notifications

 

  1. Exemptions from cesses and surcharges on the lines of other blended fuels (like E-5 and E-10) if these blended fuels are made of duty paid inputs

 

 

 

VII. Amendments in the Schedule VII of the Finance Act 2001 (NCCD Schedule)

 

 

 

  1. New tariff items [2404 11 00] and [2404 19 00] inserted in accordance with upcoming HS 2022 Nomenclature and prescribe NCCD of 25% on these tariff items with effect from 01.01.2022.


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