Key Highlights – Budget 2023 (Indirect Taxation)

Indirect Tax Proposals

Green Mobility:

• It is proposed to exempt excise duty on GST paid compressed bio gas contained in it.
• It is proposed to exempt the custom duty on import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles.

Electronics:

• It is proposed to provide relief in customs duty on import of certain parts and inputs like camera lens and continue the concessional duty on lithium-ion cells for batteries for another year.
• It is proposed to reduce the basic customs duty on parts of open cells of TV panels to 2.5 per cent used in manufacture of televisions.

Electrical:

• It is proposed to increase the basic custom duty on electric kitchen chimney from 7.5% to 15%.
• It is proposed to reduce the basic custom duty on heat coils from 20% to 15%. Chemicals and Petrochemicals:
• It is proposed to exempt the basic custom duty on denatured ethyl alcohol.
• It is proposed to reduce the basic custom duty on acid grade fluorspar and crude glycerin from 5% to 2.5% and 7.5% to 2.5% respectively.

Marine Products:

It is proposed to reduce the basic custom duty on key inputs for domestic manufacture of shrimp feed.

Lab Grown Diamonds:

It is proposed to reduce the basic custom duty on seeds used in the manufacture of lab grown diamonds.

Precious Metals:

• It is proposed to increase the import duty on silver dore, bars and articles made therefrom.
• It is also proposed to increase the import duty on articles made from gold and platinum.

Metals:

• It is proposed to exempt the basic custom duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued.
• Also, BCD of 2.5 % on Copper Scrap is being continued to ensure the availability of raw materials for secondary copper producers.
  Compounded Rubber:

It is proposed to increase the basic custom duty on compounded rubber from 10 per cent to 25 per cent or Rs. 30/kg whichever is lower, at par with that on natural rubber other than latex, to curb circumvention of duty.

Cigarettes:

It is proposed to increase the National Calamity Contingent Duty (NCCD) on specified cigarettes by 16%.