New Delhi, Mar 31 (PTI) Finance Minister Arun Jaitley today introduced a bill in Lok Sabha to amend the customs and excise acts to make them compliant with the new GST regime. Also Read - Union Budget 2021 to be Presented on February 1, Budget Session of Parliament from January 29
The amendment seeks to include ‘warehouse’ in the definition of customs area to ensure that an importer is not asked to pay Integrated Goods and Services Tax (IGST) at the time of removal of goods from a customs station to a warehouse. Also Read - No Amount Of Government Intervention Adequate For Pandemic-Hit Economy: Nirmala Sitharaman
“The proposed bill also seeks to abolish the cess levied on water consumed by certain industries and by local authorities Also Read - Mumbai: Germany Extends 545 Million Euro Funding To MMRDA Infra Projects
under the Water (prevention and Control of Pollution) Cess Act, 1977,” the statement of objects and reasons for the Bill stated.
Jaitley brought The Taxation Laws (Amendment) Bill, 2017 to further amend the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise Act, 1944, the Finance Act, 2001 and the Finance Act, 2005, within days of the Lok Sabha passing four GST legislations.
“As the goods and services tax is to be introduced with effect from the July 1, 2017, the four legislations of the Central GST Bill 2017, the Integrated GST Bill 2017, the Union Territory GST Bill, 2017 and The GST (Compensation to States) Bill, 2017 are in the process of being enacted,” it said.
As a result, central excise duty on goods other than crude oil, petrol, diesel, ATF and natural gas, service tax on taxable services and VAT on sale or purchase of goods will be subsumed in the GST.
“Therefore, it requires certain consequential amendments in the Customs Act, 1962, the Customs Tariff Act, 1975, the Central Excise act, 1944, the Finance Act 2001 and the Finance Act 2005 and repeal of certain enactments,” it said.
The amendment is to provide for levy of IGST and GST Compensation Cess on imports goods as to provide a level playing field to the domestic industry.
Also, certain consequential amendments are proposed to made in the excise act relating to certain definitions, charging sections, provision of deemed manufacture and insertion of emergency powers to increase the rate of duty.
This is published unedited from the PTI feed.