With the expected roll out of GST on July 1, 2017 a new indirect tax regime will be born. The various current indirect taxes levied on sale of goods or supply of services by the Central or Sate Government will be subsumed into GST. Therefore, to make the Customs Act & Excise Act compliant with GST, Lok Sabha on 6th April 2017 has passed The Taxation (Amendment) Bill, 2017.
With the Amendment Bill, 2017 the Government seeks to amend Customs Act, 1962, The Customs Tariff Act, 1975, The Central Excise Act, 1944, The Finance Act, 2001, the Finance Act, 2005, and repeal provisions of few Acts.
Major amendments of Taxation (Amendment) Bill, 2017
The scope of the definition of ‘custom area’ under the Customs Act, 1962 extends to warehouse, so that an importer would not be required to pay the proposed integrated goods and services tax at the time of removal of goods from a customs station to a warehouse.
To provide a level playing field to the domestic industry, Customs Tariff Act, 1975 is amended to provide for levy of Integrated Goods and Service Tax (IGST) and Goods and Services Tax Compensation Cess on imported goods.
National Calamity Contingent Duty will be levied only on tobacco products and crude oil.
Additional Excise duty is to be levied on pan masala and tobacco products.
Petroleum products such as motor spirit, high speed diesel, aviation turbine fuel, and tobacco products will be outside the scope of GST and Central Excise duty will be levied on the same.
Due to new indirect tax regime, the cesses or surcharges levied or collected as duties of central excise on excisable goods or as service tax on taxable services would become irrelevant, therefore, the Bill abolishes cesses or surcharges such as Water (Prevention and Control of Pollution) Cess Act, 1977, The Sugar Cess Act, 1982, The Jute Manufacturers Cess Act, 1983, The Bedi Workers Welfare Cess Act, 1976. Moreover, arrears of the said duties is to be collected and credited to Consolidated Fund of India.