Indirect Tax changes in Budget 2023 - Sinewave Computer Services Pvt Ltd

Number of basic customs duty rates on goods, other than textiles and agriculture, reduced to 13 from 21.
Minor changes in the basic custom duties, cesses and surcharges on some items including toys, bicycles, automobiles and naphtha.

Excise duty exempted on GST-paid compressed bio gas contained in blended compressed natural gas.
Customs Duty on specified capital goods/machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs) extended to 31.03.2024
Customs duty exempted on vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies, for the purpose of testing and/ or certification, subject to conditions.

Customs duty on camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone reduced to zero and concessional duty on lithium-ion cells for batteries extended for another year.
Basic customs duty reduced on parts of open cells of TV panels to 2.5 per cent.

Basic customs duty on electric kitchen chimney increased to 15 per cent from 7.5 per cent.
Basic customs duty on heat coil for manufacture of electric kitchen chimneys reduced to 15 per cent from 20 per cent.

Denatured ethyl alcohol used in chemical industry exempted from basic customs duty.
Basic customs duty reduced on acid grade fluorspar (containing by weight more than 97 per cent of calcium fluoride) to 2.5 per cent from 5 per cent.
Basic customs duty on crude glycerin for use in manufacture of epicholorhydrin reduced to 2.5 per cent from 7.5 per cent.
Duty reduced on key inputs for domestic manufacture of shrimp feed.
Basic customs duty reduced on seeds used in the manufacture of lab grown diamonds.

Basic Customs Duty exemption on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode continued.
Concessional BCD of 2.5 per cent on copper scrap is continued.
Basic customs duty rate on compounded rubber increased to 25 per cent from 10 per cent or 30 per kg whichever is lower.
National Calamity Contingent Duty (NCCD) on specified cigarettes revised upwards by about 16 per cent.

Legislative Changes in Customs Laws

Customs Act, 1962 to be amended to specify a time limit of nine months from date of filing application for passing final order by Settlement Commission.
Customs Tariff Act to be amended to clarify the intent and scope of provisions relating to Anti-Dumping Duty (ADD), Countervailing Duty (CVD), and Safeguard Measures.
CGST Act to be amended

to raise the minimum threshold of tax amount for launching prosecution under GST from one crore to two crore;
to reduce the compounding amount from the present range of 50 to 150 per cent of tax amount to the range of 25 to 100 per cent;
decriminalise certain offences;
to restrict filing of returns/statements to a maximum period of three years from the due date of filing of the relevant return/statement; and
to enable unregistered suppliers and composition taxpayers to make intra-state supply of goods through E-Commerce Operators (ECOs).