Cabinet approves proposals for Amendment in the Customs and Excise Act to abolish various types of cess and surcharges to facilitate implementation of GST
Reportedly, the Union Cabinet has approved proposals relating to Amendment in Indirect Tax laws (i.e. Customs & Excise Duty Law) for abolition of various types of cess and surcharges on goods and services to facilitate implementation of GST Regime, as under:
i) Amendment to the Customs Act, 1962;
ii) Amendments to the Customs Tariff Act, 1975;
iii) Amendment to the Central Excise Act, 1944;
iv) Repeal of the Central Excise Tariff Act, 1985; and
v) Amendment or repeal of the provisions relating to Acts under which cesses are levied.
To implement the above proposals, the Govt. is likely to take the following steps:
a) Insertion of Sections 108A and 108B in the Customs Act, 1962 seeks to provide for furnishing of information relating to import/ export of goods by specified persons to enable analysis and detection of cases of under/ over-valuation in imports and exports, misuse of export promotion schemes including the Drawback Scheme and violations of the provisions of the Customs Act and various other laws under which Customs officials have been authorized to effectively implement these laws; and
b) Amendments or repeal of various provisions of other Acts which will no longer be relevant consequent upon roll out of GST will result in cleansing of the irrelevant portions from the Statute Book and reduce multiplicity of taxes.