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