look news india
New Delhi: Excise goods manufactured in Special Economic Zones (SEZs) and brought to any other place in India will not be exempted from tax, according to the Centre's proposed Central Excise Bill, 2024. The Bill states that if any goods are found eligible for any exemption by the central government, a separate notification will be issued for the same.
If implemented, the draft will prevent SEZ-based units from alleged tax evasion and also prevent misuse of incentives. Currently, central excise duty is levied on tobacco, kerosene, petrol, diesel, natural gas and aviation turbine fuel. Most goods are subject to the Goods and Services Tax (GST).
SEZ units are given special incentives and tax benefits, including exemption from central excise duty. The central government shall also regulate evasion of excise duty on such goods and other matters, taking into account the special method of manufacture or process of manufacture of goods liable to excise duty, the draft bill states.
There are only a few items in the excise basket, but it is a major source of revenue for both the Centre and the states. Instead of levying a state GST, state governments levy value-added tax or VAT on these items. Central excise duty collections in FY24 were Rs. It was more than 3 lakh crore.
Among other key proposals, the new Bill outlines the availability of excise duty credit and its use, conditions and restrictions. Central excise duty credit has been proposed to replace the existing CENVAT credit with special provisions relating to duty credit.