Article explains Union Budget 2019 Proposals Involving Changes in Export Duty Rates, Proposals Involving Change in Excise Duty Rate Though Notifications, Effective change in rate of Special Additional Excise Duty and Road and Infrastructure Cess on Petrol and Diesel, Amendments In Fourth Schedule To Central Excise Act, 1944, Amendment in the Sixth Schedule to the Finance Act, 2018 and Amendment in the Eighth Schedule to the Finance Act, 2002

1. Proposals Involving Changes In Export Duty Rates

S.
No.
Export duty changes From To
1 41 EI tanned Leather 15% Nil
2 41 Hides, skins and leathers, tanned and untanned, all sorts 60% 40%

2. Proposals Involving Change in Excise Duty Rate Though Notifications

S.
No.
Heading,
sub-heading
tariff item
Commodity From To
1 2402 20 10 Other than filter cigarettes, of length not exceeding 65 millimeters Nil Rs 5 per thousand
2 2402 20 20 Other than filter cigarettes, of length exceeding 65 millimeters but not exceeding 70 millimeters Nil Rs. 5 per thousand
3 2402 20 30 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimeters or its actual length, whichever is more) not exceeding 65 millimeters Nil Rs. 5 per thousand
4 2402 20 40 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimeters or its actual length, whichever is more) exceeding 65 millimeters but not
exceeding 70 millimeters
Nil Rs. 5 per thousand
5 2402 20 50 Filter cigarettes of length (including the length of the filter, the length   of filter being 11 millimeters or its actual  length, whichever  is    more) exceeding 70 millimeters but not
exceeding 75 millimeters
Nil Rs. 5 per thousand
6 2402 20 90 Other (Cigarettes containing tobacco) Nil Rs. 10 per thousand
7 2402 90 10 Cigarettes of tobacco substitutes Nil Rs. 5 per thousand
8 2403 11 10 Hookah or gudaku tobacco Nil 0.5%
9 2403 19 10 Smoking mixtures for pipes and cigarettes Nil 1%
10 2403 19 21 Other than paper rolled biris, manufactured without the aid of machine Nil 5 paisa per thousand
11 2403 19 29 Other (Biris) Nil 10 paisa per thousand
12 2403 19 90 Other smoking tobacco Nil 0.5%
13 2403 91 00 “Homogenised” or “reconstituted” tobacco Nil 0.5%
14 2403 99 10 Chewing tobacco Nil 0.5%
15 2403 99 20 Preparations containing chewing tobacco Nil 0.5%
16 2403 99 30 Jarda scented tobacco Nil 0.5%
17 2403 99 40 Snuff Nil 0.5%
18 2403 99 50 Preparations containing snuff Nil 0.5%
19 2403 99 60 Tobacco extracts and essence Nil 0.5%
20 2403 99 90 Other (manufactured tobacco and substitutes) Nil 0.5%
21 2709 20 00 Crude Petroleum oil produced in specified oil fields under production sharing contracts or in the exploration blocks offered under the New Exploration Licensing Policy (NELP) through international competitive bidding Re. 1
per
tonne
Nil

3. Effective change in rate of Special Additional Excise Duty and Road and Infrastructure Cess on Petrol and Diesel

S.
No.
Description Rate of Duty
A Increase in effective rate of Special Additional Excise Duty on Petrol and Diesel From To
1 Motor spirit commonly known as petrol Rs. 7 per litre Rs. 8 per litre
2 High speed diesel oil Rs. 1 per litre Rs. 2 per litre
B Increase in effective rate of Road and Infrastructure Cess, levied as additional duty of excise, on Petrol and Diesel From To
1 Motor spirit commonly known as petrol Rs. 8 per litre Rs. 9 per litre
2 High speed diesel oil Rs. 8 per litre Rs. 9 per litre

4. Amendments In Fourth Schedule To Central Excise Act, 1944

S.
No.
Amendments affecting rate of Basic Excise Duty [to be effective from 06.07.2019]* [Clause [90] of the Finance (No. 2) Bill, 2019] Rate of Duty
S.
No.
Heading,
sub-heading
tariff item
Commodity From To
1 2709 20 00 Petroleum Crude Nil Re. 1 per tonne

* Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

Extract of Clause 90 of Finance Bill 2019

90. Amendment of Fourth Schedule.

In the Fourth Schedule to the Central Excise Act, 1944, in Chapter 27, for the entry in column (4) occurring against tariff item 2709 20 00, the entry “Re.1 per tonne” shall be substituted.

Note on Clause 90 of Finance Bill 2019

Clause 90 of the Bill seeks to amend the Fourth Schedule to the Central Excise Act, 1944, so as to revise the tariff rate in respect of tariff item “2709 20 00” from “Nil” to “Re. 1 per tonne”.

5. Amendment in the Sixth Schedule to the Finance Act, 2018:

S. No. Amendments in scheduled rate of Road and Infrastructure cess levied as additional duty of excise, on Petrol and Diesel [to be effective from 06.07.2019]* [Clause [201] of the Finance (No. 2) Bill, 2019] [effective rate is prescribed by notification as detailed in V-B below] Rate of Duty
From To
1 Motor spirit commonly known as petrol Rs. 8 per litre Rs. 10 per litre
2 High speed diesel oil Rs. 8 per litre Rs. 10 per litre

*Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

Extract of Clause 201 of Finance Bill 2019

201. Amendment of Act 13 of 2018.

In the Finance Act, 2018, in the Sixth Schedule, against Item Nos. 1 and 2, for the entry in 35 column (3), the entry “Rs.10 per litre” shall be substituted.

Note on Clause 201 of Finance Bill 2019

Clause 201 of the Bill seeks to amend the Sixth Schedule to the Finance Act, 2018, so as to increase the rate of road and infrastructure cess on motor spirit commonly known as petrol and high speed diesel oil , from rupees 8 per litre to rupees 10 per litre.

6. Amendment in the Eighth Schedule to the Finance Act, 2002

S.
No.
Amendments in scheduled rate of Special Additional Excise Duty on Petrol and Diesel [to be effective from 06.07.2019]* [Clause [185] of the Finance (No. 2) Bill, 2019][effective rate is prescribed by notification as detailed in V-A below] Rate of Duty
From To
1 Motor spirit commonly known as petrol Rs. 7 per litre Rs 10 per litre
2 High speed diesel oil Rs. 1 per litre Rs 4 per litre

* Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

Extract of Clause 185 of Finance Bill 2019

185. Amendment of Act 20 of 2002.

In the Finance Act, 2002, in the Eighth Schedule,––

(a) against Item No. 1, for the entry in column (3), the entry “Rs.10 per litre” shall be substituted;

(b) against Item No. 2, for the entry in column (3), the entry “Rs.4 per litre” shall be substituted.

Note on Clause 185 of Finance Bill 2019

Clause 185 of the Bill seeks to amend the Eighth Schedule to the Finance Act, 2002, sub-clause (a) thereof seeks to increase the rate of special additional duty of excise on motor spirit commonly known as petrol from rupees seven per litre to rupees ten per litre. Sub-clause (b) thereof seeks to increase the rate of special additional duty of excise on high speed diesel oil from rupees one per litre to rupees four per litre.

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One Comment

  1. MaheshJani says:

    Please clarify me,whether excise duty on Biris is also applicable to units ,doing business upto 4000000 RS in a year? as GST the same is also applicable in excise duty?

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