Hon’ble Finance Minister Smt. Nirmala Sitharaman became the first Finance Minister to present the Union Budget for the 7th time in a row. The Budget 2024 was announced post the General Election and the Government taking back its charge.
We herewith provide Important changes and updates with respect to Exports and Imports for your ready reference.
1. BCD on Shea Nuts reduced to 15%
2. BCD on critical minerals, namely, Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Potash, REE, Rhenium, Strontium, Tantalum, Tellurium, Tin, Tungsten, Vanadium, Zirconium, Selenium, Cadmium, Silicon other than Quartz & Silicon Dioxide. has been reduced to NIL
3. BCD on following critical minerals, namely, Graphite, Silicon Quartz & Silicon Dioxide has been reduced to 2.5%
4. BCD on Prawn & Shrimps feed and fish feed has been reduced to 5%.
5. BCD on Ammonium Nitrate has been increased from 7.5% to 10%.
6. The tariff rate of CTH 3920 and 3921 has been increased to 15%. Consequently, from
24.7.2024, PVC Flex Films/Flex Banners will attract 25% by virtue of declaration under
Provisional Collection of Taxes Act 2023. However, Notification No 50/2017-Customs
has been amended to maintain the existing rate of 10% on items other than PVC Flex
Films/Flex Banners.
7. BCD on following Cancer Drugs Trastuzumab Deruxtecan, Osimertinib & Durvalumab is fully exempted.
8. BCD has been reduced from 7.5% to 5% on MDI for manufacture of spandex yarn to
rectify duty inversion. This is subject to IGCR condition.
9. BCD on cellular mobile phone has been reduced from 20% to 15%.
10. The exemption entries providing concessional BCD rate to mechanics and die-cut parts of
chapters 39 and 73 has been expanded to include chapter 40, 70 and 76
11. BCD rate on PCBA of specified telecom equipment has been increased from 10% to
15%.
12. The Duty rates on precious Metals have also been revised in the budget.
13. BCD has been reduced on Ferro-Nickel from 2.5% to Nil and The BCD exemption on Ferrous Scrap has been continued upto 31.3.2026.
14. Certain specified capital goods has been added to the list of exempted goods for use in
manufacture of solar cells and modules.
15. The BCD on Garden umbrella has been revised from ‘20%’ to ‘20% or ₹60 per piece,
whichever is higher’
16. The BCD rate on Lab chemicals classified under HS 9802 00 00 has been increased from
10% to 150%
17. There has been a rationalized revision on Export Duty structure for Raw Hides, Skins and Leather.
18. 30 Exemptions / Concessional Rates Notifications have been extended till 31.03.2029
19. 126 exemptions/ concessional rates are being continued upto 31.3.2026
20. 28 exemptions/ concessional rates are being lapsed on their end dates of 30.9.2024
21. End dates are being removed in 4 exemptions as they are covered by the exclusion clause.
22 .GST Compensation Cess is being exempted with effect from 1st July, 2017 on imports in SEZ by SEZ units or developers for authorized operations. This will have a retrospective effect.
23. The time period for submission the final Mega Power Project certificate is extended from 120 months to 156 months.
24. As per Notification No. 45/2017-Customs dated 30.6.2017 has been amended to increase the time-period of duty-free re-import of goods (other than those under export promotion schemes) exported under warranty from 3 years to 5 years.
25. The Limit under Notification No. 154/94 for Import of Samples for the purpose of being shown in India for guidance of exporters or securing export orders for goods other than gem and jewellery which was Rs. Rs. 1,00,000/- (One Lakh) has been increased to Rs. 3,00,000/- (Three Lakhs)
26. Section 54 of CGST Act and section 16 of IGST Act is being amended to prohibit refund of unutilized input tax credit or of integrated tax on zero-rated supply of goods which are subjected to export duty.
Notwithstanding anything contained in this section, no refund of unutilised input tax credit on account of zero rated supply of goods or of integrated tax paid on account of zero rated supply of goods shall be allowed where such zero rated supply of goods is subjected to export duty
27. An amendment in Sub Section (4) (ii) of Section 16 has been made which reads
…….or both, on zero rated supply of which, the supplier may pay integrated tax and claim
the refund of tax so paid, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder.
Sub Section (5) of Section 16 to provide no refund for goods subjected to export duty is also added
Notwithstanding anything contained in subsections (3) and (4), no refund of unutilised input tax credit on account of zero rated supply of goods or of integrated tax paid on account of zero rated supply of goods shall be allowed where such zero rated supply of goods are subjected to export duty.
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