Budget 2024-25: Major GST and Customs Duty changes announced by FM [Read Bill]

Union Finance Minister Nirmala Sitharaman has unveiled the Union Budget for the fiscal year 2024-25, detailing the financial roadmap and allocations for the current year. This marks the first full budget from the Modi 3.0 government and the seventh consecutive budget presented by the finance minister. In her Budget speech for the fiscal year 2024-25, Finance Minister Nirmala Sitharaman highlighted the significant benefits brought about by the Goods and Services Tax ( GST ). GST Reforms and Benefits Since its implementation, GST has decreased the tax incidence on the common man, reduced compliance burdens, and lowered logistics costs for trade and industry. Additionally, it has enhanced revenues for both central and state governments, marking a vast success, the Union Finance Minister stated. To further multiply the benefits of GST, the government aims to simplify and rationalise the tax structure and expand it to the remaining sector, she added. Customs Duties: Supporting Domestic Manufacturing and Export Competitiveness Finance Minister Sitharaman outlined several proposals related to customs duties, focusing on supporting domestic manufacturing, deepening local value addition, promoting export competitiveness, and simplifying taxation. Learn More Here: https://academy.taxscan.in/course/complete-analysis-of-budget-2024-on-gst/ Key Proposals: Review and Rationalization of Customs Duty Rates: In Budget 2022-23, the number of customs duty rates was reduced. The Finance Minister now proposes a comprehensive review of the rate structure over the next six months to rationalise and simplify it for ease of trade, removal of duty inversion, and reduction of disputes. Sector-Specific Proposals: Medicines and Medical Equipment: Full exemption from customs duties on three additional medicines for cancer patients. Changes in the Basic Customs Duty ( BCD ) on x-ray tubes and flat panel detectors for medical x-ray machines to synchronise with domestic capacity addition. Mobile Phones and Related Parts: Reduction of BCD on mobile phones, mobile PCBA, and mobile chargers to 15%, benefiting consumers due to increased domestic production and exports. Critical Minerals: Full exemption from customs duties on 25 critical minerals and reduced BCD on two of them to support sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics. Solar Energy: Expansion of the list of exempted capital goods for manufacturing solar cells and panels. Exemption for solar glass and tinned copper interconnects will not be extended due to sufficient domestic manufacturing capacity. Marine Products: Reduction of BCD on broodstock, polychaete worms, shrimp, and fish feed to 5%. Exemption of customs duty on various inputs for the manufacture of shrimp and fish feed. Leather and Textile: Reduction of BCD on real down filling material from duck or goose. Additions to the list of exempted goods for the manufacture of leather and textile garments, footwear, and other leather articles for export. Reduction of BCD on methylene diphenyl diisocyanate ( MDI ) for spandex yarn manufacture from 7.5% to 5%. Simplification and rationalisation of the export duty structure on raw hides, skins, and leather. Precious Metals: Reduction of customs duties on gold and silver to 6% and on platinum to 6.4% to enhance domestic value addition in jewellery. Other Metals: Removal of BCD on ferro nickel and blister copper. Continuation of nil BCD on ferrous scrap and nickel cathode and a concessional BCD of 2.5% on copper scrap. Electronics: Removal of BCD on oxygen-free copper for resistor manufacture and exemption of certain parts for connector manufacture. Chemicals and Petrochemicals: Increase of BCD on ammonium nitrate from 7.5% to 10% to support existing and new capacities. Plastics: Increase of BCD on PVC flex banners from 10% to 25% due to environmental and health hazards. Telecommunication Equipment: Increase of BCD from 10% to 15% on PCBA of specified telecom equipment to incentivize domestic manufacturing. Trade Facilitation: Extension of the period for the export of goods imported for repairs from six months to one year. Extension of the time limit for re-import of goods for repairs under warranty from three to five years. Conclusion The Budget 2024-25 announcements reflect the government's commitment to supporting domestic manufacturing, promoting export competitiveness, and simplifying the taxation structure. These measures aim to provide relief to various sectors, boost the economy, and ensure sustainable growth. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updatesWant to explore further? Check out our related book here