Centre Proposes New Excise Law, Emphasizing Ease of Doing Business

The Central Board of Indirect Taxes & Customs has unveiled a draft of the ‘Central Excise Bill, 2024,’ seeking public suggestions. This comprehensive modern excise law aims to simplify business operations and eliminate outdated provisions, superseding the Central Excise Act of 1944.

The proposed bill is a response to industry demands for harmonizing excise duty regulations with Goods and Services Tax (GST) legislation. By removing redundant provisions post-GST implementation, the bill aligns the excise framework with current economic and regulatory environments.

Comprising twelve chapters, 114 sections, and two schedules, the bill has been drafted with a focus on specific goods like certain tobacco and petroleum products that still attract Central Excise duty. Experts highlight this update as crucial since most goods are no longer subject to Central Excise following GST’s introduction in 2017.

The revamped law addresses past and ongoing disputes, granting the government powers to extend time limits under special circumstances or to issue orders for removing difficulties. The bill also proposes incorporating the CENVAT Credit system and adopting the ‘related persons’ concept from customs law.

Notable changes include reducing the time limit for assessees to claim refunds from two years to one year, while allowing departmental authorities three years to raise demands. Stakeholders are invited to submit their comments on the bill by June 26.

Experts see this bill as a pivotal step toward modernizing India’s tax framework, ensuring it reflects the current economic landscape and integrates with GST legislation.