Chapter 24: No change.

Chapter 27:

1) A Road and Infrastructure Cess, as an Additional Duty of Excise, is being imposed on motor spirit commonly known as petrol and high speed diesel, falling under heading 2710, at the rate of Rs. 8 per litre. [Clause 110 read with the Sixth Schedule of the Finance Bill, 2018 refers.] This levy of Road and Infrastructure Cess will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

2) Simultaneously, the Basic Excise Duty on motor spirit commonly known as petrol (both branded and unbranded) and high speed diesel oil (both branded and unbranded) is being reduced by Rs. 2 per litre. [S. Nos. 2 and 3 of the Notification No. 11/2017-CE dated 30th June, 2017 as amended vide Notification No. 9/2018-CE dated 02.02.2018 refer.]

3) The Additional Duty of Excise (Road Cess) leviable on motor spirit commonly known as petrol and high speed diesel oil are being abolished by omitting the relevant sections in Finance (No.2) Act, 1998 and Finance Act, 1999, respectively. [Clause 106 of the Finance Bill, 2018 refers]. Till the enactment of the Finance Bill, 2018, the Additional Duty of Excise (Road Cess) leviable on domestically manufactured and produced motor spirit commonly known as petrol and high speed diesel oil are being fully exempted. [Notification No. 7/2018-CE and 8/2018-CE both dated 02.02.2018 refer.]. Consequently, notification Nos. 10/2015—CE dated 01.03.2015, 11/2015-CE dated 01.03.2015 are being rescinded. Further, notification Nos. 38/2004 —Central Excise dated 04.08.2004, 62/2008 —Central Excise dated 24.12.2008, 21/2009-Central Excise, dated 7.7.2009 exempting petrol blended with ethanol and diesel blended with bio-diesel from the levy of Additional Duty of Excise [Road Cess] are also being rescinded. [Notification No. 1/2018-CE, No. 2/2018-CE 3/2018-CE, 4/2018-CE and 5/2018-CE all dated 02.02.2018 refer.]

4) The Road and Infrastructure Cess on ethanol blended petrol and diesel blended with bio-diesel is being exempted, subject to the condition that appropriate duties of excise have been paid on petrol or diesel and appropriate GST has been paid on ethanol or bio-diesel used for making such blend. [Notification No.11/2018-CE, No.12/2018-CE and No.13/2018-CE, all dated 02″d February, 2018 refer.]

5) Notification No. 29/2002—Central Excise, dated 13.05.2002 prescribing effective rate of Basic Excise Duty, Additional Excise Duty (Road Cess) and Special Additional Excise Duty on petrol and diesel manufactured in and cleared from specified refineries in the North East Region is being rescinded vide Notification No. 6/2018-CE dated 02.02.2018 and a new notification No. 10/2018-CE dated 02.02.2018 is being issued exempting 50% of Basic Excise Duty, Road and Infrastructure Cess and Special Additional Excise Duty on petrol and diesel manufactured in and cleared from four specified oil refineries located in the North East Region.

6) Table below summarizes the changes in various duties applicable to petrol and diesel:

Item Duty rates applicable prior upto 01.02.2018 [Rs. per litre] Duty rates applicable with effect from 02.02.2018 [Rs. per litre]
Product Basic Excise Duty (BED) AED
(Road Cess)
SAED Total
Excise
Duty
Basic Excise Duty (BED) Road and
Infrastructure Cess
SAED Total
Excise
Duty
Petrol (unbranded) 6.48 6 7 19.48 4.48 8 7 19.48
Petrol (branded) 7.66 6 7 20.66 5.66 8 7 20.66
Diesel (unbranded) 8.33 6 1 15:33 6.33 8 1 15.33
Diesel (branded) 10.69 6 1 17.69 8.69 8 1 17.69

Thus, total excise duty on motor spirit commonly known as petrol and high speed diesel oil remains unchanged.

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2 responses to “Budget 2018 Exhaustive Analysis of Changes in Excise Duty”

  1. A N V RAMANI & CO says:

    FM himself admitted that salaried class contributed good amount of tax. Still the net benefit to them is 40000-19200-15000=5800. This meagre benefit also will be taken away by the increased cess(4%) as against 3% now. Criticism of IT is true. What is given by the right hand is taken away by the left hand. Middle class are dissapointed

  2. dipendu sinha says:

    what is an effect the general public for reducing central excise. Total excise duty is same. General public may want to reducing the petrol and diesel price. Acha din kaha aya pata nahi.

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