The Taxation Laws (Amendment) Bill became an Act with the assent of the President, Pranab Mukherjee. The Bill was cleared by the Rajya Sabha and the Lok sabha earlier last month.
The Taxation Laws (Amendment) Bill, 2017 aimed at amending the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act, 2001, the Finance Act, 2005, and repeal provisions of few Acts.
The main object of the Act is to make Excise, Customs and Service Tax laws to compliant with GST, which is expected to be roll out from July 2017. Under the new indirect tax regime, the excise, service, VAT etc will be subsumed.
Some of the significant changes brought by the Act are as below.
Customs Law
The definition of ‘Customs Area’ under the Customs Act, 1962 will include warehouses. This will enable an importer to not to pay the proposed integrated goods and services tax at the time of removal of goods from a customs station to a warehouse.
The Act inserted a new provision to the Customs Act which requires several persons to furnish information to a proper officer under the Act (customs officer). Such persons and entities include: (i) income tax and state GST authorities, (ii) Reserve Bank of India, (iii) banks and financial institutions, (iv) stock exchanges and depositories (v) state electricity boards, (vi) Registrar of Companies, (vii) Registrar and Sub-registrar under the Registrar Act, 1908,(viii) registration authority under the Motor Vehicles Act, 1988, and (ix) Post Master General. The manner in which the information will have to be furnished will be notified by the government.
The proper officer may serve a notice if the information is not furnished within the specified time. Further, the officer may impose a fine after 30 days of serving the notice. The fine will be of Rs 100/day, until the information is furnished.
The Act also changes some of the provisions of the Customs Tariff Act, 1975. Under the new indirect tax regime, the goods imported are subject to the Integrated Good and Service Tax (IGST). IGST will be levied on the aggregate of value of the imported goods, Customs Duty levied under the Act, and any other amount chargeable under any law.
The goods imported will be liable to the GST Compensation Cess, which will be levied on the aggregate of value of the imported goods, Customs Duty levied under the Act, and any other amount chargeable under any law.
Excise Law
Earlier, the Central Excise Duty was levied on various excisable goods such as tobacco, petroleum products, rubber, oils, vehicles, etc. Under the new statute, the levy will be on a certain kind of: (i) petroleum products such as motor spirit, high speed diesel, aviation turbine fuel, and (ii) tobacco products.
The Act repeals the Central Tariff Act and the above goods, which are specified in the Central excise Tariff Act are shifted to fourth schedule of the Central excise Act, 1944.
The Act also inserts a new provision to the 1944 Act empowering the government powers to change excise rates through notification in emergency circumstances. It also inserts a provision to allow the central government to amend the newly inserted Fourth Schedule through notification.
The National Calamity Contingent Duty, which was levied through Finance Act, 2001, on goods such as pan masala, tobacco products, telephones, motor vehicles, crude oil, petroleum products will be limited only to tobacco products and crude oil.
Similarly, the Additional Excise Duty levied on petroleum oils, crude and other related products under the Finance Act, 2005 will be removed.
Repeal of several laws
The Act repeals certain laws such as the Sugar Cess Act, 1982 and the Jute Manufacturers Cess Act, 1983. It also repeals certain provisions of 10 laws which include the Rubber Act, 1947, the Industries (Development and Regulation) Act, 1951, and the Coal Mines (Conservation and Development) Act, 1953. Any un-collected duties (arrears) under the above Acts shall be collected by the respective collecting agencies and remitted to the Consolidate Fund of India.
Read the full text of the The Taxation Laws (Amendment) Act, 2017 here.
