130 new items under excise duty, Mandatory on Readymade Garments- Budget 2011-12

• Tuesday, March 1, 2011, 7:54
• Excise Duty
• Budget 2011-12, News

130 items brought under Tax Net with Nominal one Per Cent Excise Duty. Mandatory 10 Per Cent Levy Replaces Optional Levy for Readymade Garments

In the General Budget 2011-12, certain changes in the Central Excise Rate structure has been proposed to prepare the ground transition to GST. The exemption has been withdrawn on 130 items that are exempt from Central Excise Duty but chargeable to VAT. A nominal central excise duty of one per cent is being imposed on these 130 items that are mainly in the nature of consumer goods. No Cenvat credit would be available for the manufacture of these items. Presenting the Budget, the Union Finance Minister, Shri Pranab Mukherjee in the Lok Sabha today said that basic food and fuel would continue to be exempt. This levy would also not apply to precious metals and stones. In case of jewellery and articles of gold, silver and precious metals, the levy would apply only to goods sold under a brand name. The remaining 240 items would be brought into the tax net when GST is introduced.

The lower rate of Central Excise Duty has been enhanced from 4 per cent to 5 per cent, in line with the States’ increased merit rate of VAT.

For readymade garments and made-ups of textiles, the optional levy has been converted into a mandatory levy at a unified rate of 10 per cent. The levy would however, apply only to branded garments or made-ups and not to those tailored or made to order for a retail customer. Credit of tax paid on inputs, capital goods and input services would be available to manufacturers of these products. Export o these items would continued to be zero-rated.

Related posts:

1. Micro-wave ovens, pre-packaged imported goods, mobile phones, watches, readymade garments, toy baloons, long pepper, replaceable household water filters to be cheaper
2. Budget for next year may take back excise exemption given to around 250 items
3. Excise Duty Rate hike of 2 pc likely in 2011-12 Budget
4. Customs Circular No 12/2010, Clarification regarding basis of levy of additional Customs duty (CVD) on import of Readymade Garments
5. Budget 2010: Central excise on petrol and diesel raised by Rs. one per liter

15 Comments on “130 new items under excise duty, Mandatory on Readymade Garments- Budget 2011-12”

• TAJINDER SHARMA wrote on 1 March, 2011, 12:19

  please send me current budget points on cbec specialy on readymade garments
• Kushal Jain wrote on 1 March, 2011, 13:56

  kindly let us know whether Hard Coke and Coal has come under the preview of Central excise duty.
• Vikas Mittal wrote on 1 March, 2011, 15:48

  Plz. provide me list of 130 items which are added in excise duty.
• PANKAJ wrote on 2 March, 2011, 9:26

  please send me the list of 130 items which are added in excise duty
• Surendra Gupta wrote on 2 March, 2011, 12:00

  Let me know the list of that 130 items which is levied at 1% excise duty.
• Abhinav wrote on 2 March, 2011, 12:02

  please send me the list of 130 items which are added in excise duty
• Surendra Gupta wrote on 2 March, 2011, 12:02

  Is there any variety of paper which falls under the catagory of 10% Excise duty
• Hitendar Singh wrote on 2 March, 2011, 12:57

  WHAT EXCISE RATE IS APPLICABLE TO OFFICE FILES AND STATIONRY
• manoj jain wrote on 2 March, 2011, 13:43

  please tell me about the reafymade garments
• Sunil Saini wrote on 4 March, 2011, 16:41

  SIR…..MY TOTAL TORNOVER IS BELOW ONE CRORE………AM A APPLICABLE FOR CHARGE OF EXCISE DUTY……..I AM COPY MANUFACTURES…..AND STATIONERY SUPPLIERS
• adi wrote on 4 March, 2011, 18:10

  i want to know whater AIR is in the excise duty , if not tell FM to add it.
• HARIT JAIN wrote on 4 March, 2011, 22:45

  send me the list of 130 items come under 1% excise duty
• Avinash Jaiswal wrote on 9 March, 2011, 13:57

  send me the list of 130 items come under 1% excise duty
• sheel wrote on 18 March, 2011, 15:38

  change in exicse duties on paper mean examption of ED has been taken back
• Imran wrote on 22 October, 2011, 11:44

  Please send me the list of items which are taxable under the Excise duty.

  thanks

Write a Comment