Amendment in the First Schedule to the Customs Tariff Act, 1975
The Ministry of Finance, Department of Revenue, has recently issued Notification No. 72/2023-Customs (N.T.) on 30th September 2023, bringing significant amendments to the First Schedule of the Customs Tariff Act, 1975. This article will provide a detailed analysis of these amendments, their implications, and the date of their enforcement.
The amendments primarily focus on two aspects: spirits for industrial use and actionable claims related to online money gaming.
Spirits for Industrial Use (Chapter 22):
- A new sub-heading note has been introduced under Chapter 22, specifically for tariff item 2207 10 12. It defines “Spirits for industrial use” as rectified spirits used in the industrial preparation of pharmaceuticals, food, healthcare products, or other non-alcoholic products. These spirits are not intended for alcoholic liquors for human consumption.
- A new tariff item, 2207 10 12, has been added for “Spirits for industrial use” with a duty rate of 150%.
Actionable Claims (Chapter 98):
- The chapter heading for Chapter 98 has been updated to include “Project imports; laboratory chemicals; passengers’ baggage, personal importations by air or post; ship stores; actionable claims.”
- A new note (Note 8) has been inserted under Chapter 98, defining the terms “Online money gaming” and “specified actionable claim” with reference to the Central Goods and Service Tax Act, 2017.
- Tariff item 9807 has been introduced, covering various types of actionable claims involved in or by way of betting, casinos, gambling, horse racing, lottery, and online money gaming, with a Nil duty rate.
Conclusion:
The amendments to the First Schedule of the Customs Tariff Act, 1975, are significant and have implications for industries using spirits for industrial purposes and those involved in online money gaming. The clear definition of “Spirits for industrial use” aims to regulate their use, while the inclusion of actionable claims related to online money gaming under Chapter 98 adds clarity to tax treatment. These changes will come into effect from the 1st day of October 2023, and affected parties should ensure compliance with the revised provisions.
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MINISTRY OF FINANCE
(Department of Revenue )
Notification No. 72/2023-Customs (N.T.) | Dated: 30th September, 2023
S.O. 4291(E).— In exercise of the powers conferred by sub-section (1) of section 11A of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the First Schedule to the Customs Tariff Act, 1975, namely: –
In the First Schedule to the Customs Tariff Act,—
(a) in Chapter 22,—
(i) after Sub-heading Note, the following Supplementary Note shall be inserted, namely:—
‘Supplementary Note :
1. For the purposes of tariff item 2207 10 12, “Spirits for industrial use” means rectified spirits which are used for industrial preparation of pharma, food, healthcare products or such other products, except for use in preparation of alcoholic liquors for human consumption.’;
(ii) in heading 2207, after tariff item 2207 10 11 and the entries relating thereto, the following tariff item and entries shall be inserted, namely: —
“2207 10 12 —- Spirits for industrial use 150% -”;
(b) in Chapter 98, —
(i) for the Chapter heading, the following Chapter heading shall be substituted, namely:—
“Project imports; laboratory chemicals; passengers’ baggage, personal importations by air or post; ship stores; actionable claims”;
(ii) after Note 7, the following Note shall be inserted, namely: —
‘8. For the purposes of heading 9807, the expressions “Online money gaming” and “specified actionable claim” shall have the same meaning as respectively assigned to them in clauses (80B) and (102A) of section 2 of the Central Goods and Service Tax Act, 2017 (12 of 2017).
(iii) after tariff item 9806 00 00 and the entries relating thereto, the following shall be inserted, namely: —
| “9807 | Specified actionable claim | ||||
| 9807 10 00 | – | Actionable claim involved in or by way of betting | – | Nil | – |
| 9807 20 00 | – | Actionable claim involved in or by way of casinos | – | Nil | – |
| 9807 30 00 | – | Actionable claim involved in or by way of gambling | – | Nil | – |
| 9807 40 00 | – | Actionable claim involved in or by way of horse racing | – | Nil | – |
| 9807 50 00 | – | Actionable claim involved in or by way of lottery | – | Nil | – |
| 9807 60 00 | – | Actionable claim involved in or by way of online money gaming | – | Nil | -“ |
2. This notification shall come into force with effect from the 1st day of October, 2023.
[F. No. 528/07/2023-STO(TU)]
ANANTH RATHAKRISHNAN, Director (Customs)
