The Union Budget in India is a comprehensive statement of the Government’s finances including spending, revenues, deficit or surplus, investment and borrowings, for the coming fiscal year. The budget can steer the economy of the country due to so many correctional, directional changes taken for the short term. It can also provide direction on what is expected in the next few years.
With this Budget edition, we bring before you the key changes which have taken place in the Indirect Taxation. We would be glad to hear from you for your valuable feedback.
Economic Survey 2017-18
- The real GDP growth projections for 2017-18 is expected to be around 6.75 per cent, which is further expected to reach to 7 to 7.5 per cent in 2018-19 driven by major reforms initiated by the government.
- The Economic Survey 2017-18 points out that there were 9.8 million unique GST registrants slightly more than the total Indirect Tax registrants under the old system of indirect taxation.
- Last year Survey had estimated that India’s Inter-State trade in goods was between 30 and 50 percent of GDP. But the GST data suggests that India’s internal trade in goods and services (excludes non-GST goods and services) is actually even higher and is about 60 percent of GDP.
Budget updates: Indirect Taxes
Key Changes in Customs Rate and Cess
Key Highlights:
- Custom Duty rate increased for various products
- EC and SHEC on imported goods has been removed
- New levy of Social Welfare Surcharge(SWS) introduced on all imported goods to provide for social welfare schemes of the Government (SWS would be charged on Basic custom duty)
- Import of Petrol, Silver and Gold- 3% SWS
- Other Imported goods (except goods exempted from EC and SHEC)- 10%
Change in Rates of Custom Duty:
|
Heading |
Description |
BCD Rate (Current) |
BCD Rate (Proposed) |
|
Chapter 8 |
cashew nuts in shell (raw cashew) falling under tariff item 0801 |
5% |
2.5% |
|
Chapter 15 |
(goods as specified under heading 1518) |
12.5% 20% |
30% 35% |
|
Chapter 20 |
(as falling under heading 2009) |
30% 30% 10% |
35% 50% 30% |
|
Chapter 21 |
all goods, excluding compound alcoholic preparations (as falling under heading 2106) |
30% |
50% |
|
Chapter 33 |
All goods falling under headings 3303 to 3307 |
10% |
20% |
|
Chapter 34 |
All goods falling under heading 3406 |
10% |
25% |
|
Chapter 39 |
Parts or sub parts or accessories of cellular mobile phones falling under heading 3919, 3920 and 3926 |
10% |
15% |
|
Chapter 40 |
Truck and bus radial tyres (4011) Cushion/ Gasket of LEC/ LCD TV (4016) Microphone Rubber Case/ Sealing Gasket used in the manufacture of mobile phones (4016 99 90) |
10% NIL 10% |
15% 10% 15% |
|
Chapter 48 |
kites falling under tariff item 4823 90 90 |
10% |
20% |
|
Chapter 50 |
silk fabrics falling under heading 5007 |
10% |
20% |
|
Chapter 64 |
All goods falling under heading 6401 to 6405 All goods falling under heading 6406 |
10% 10% |
20% 15% |
|
Chapter 68 |
All goods falling under tariff item (6815 91 00) |
10% |
7.5% |
|
Chapter 69 |
All goods falling under heading 6901 All goods falling under 6902 and 6903 |
10% 5% |
7.5% 7.5% |
|
Chapter 70 |
solar tempered glass perform of silica |
5% NIL |
Nil 5% |
|
Chapter 71 |
cut and polished colored gemstones diamonds including non-industrial diamonds All goods falling under 7117 |
2.5% 2.5% 15% |
5% 5% 20% |
|
Chapter 73 |
Screws of Cellular Mobile Phones (7318) SIM Socket (7326) |
10% 10% |
15%< |
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