07 Jun No Exemptions! Central Excise Bill 2024 Shakes SEZs
The proposed Central Excise Bill of 2024 doesn’t grant exemptions to excisable goods originating from Special Economic Zones (SEZs) and transferred within India. Any exemptions would require separate notification by the Central government, as per the Bill. This measure aims to address potential misuse of incentives and duty evasion at SEZ units. However, it’s unlikely to be included in the upcoming government budget, according to a senior government official. Currently, central excise duty is imposed on a limited list of goods, while most goods fall under the GST regime. SEZ units currently enjoy tax benefits, including exemption from central excise duty. The proposed Bill also outlines conditions for excise duty credit, replacing CENVAT credit with central excise duty credit. It suggests extending the recovery time for duties, shifting registration responsibility, and shortening the refund period. These changes, along with a structured audit framework, aim to simplify compliance and create a favorable environment for businesses to thrive.
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