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Customs duty

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	Customs duty refers to the tax imposed on goods when they are transported across international borders. In simple terms, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.</div>
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	The rate of Customs duty varies depending on where the goods were made and what they were made of.</div>
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	Custom duty in India is defined under the Customs Act, 1962, and all matters related to it fall under the Central Board of Excise &amp; Customs (CBEC).<br />
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	The Budget estimate of the government&#39;s customs revenue for the year 2020-21 was Rs 1,38,000 crore. The revised estimates of customs for the 2019-20 Budget came at Rs 1,25,000 crore, while the actuals for the 2018-19 Budget stood at Rs 1,17,812.85 crore.</div>
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	<strong>Types of custom duty</strong></div>
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		Basic Customs Duty (BCD)</li>
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		Countervailing Duty (CVD)</li>
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		Additional Customs Duty or Special CVD</li>
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		Protective Duty,</li>
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		Anti-dumping Duty</li>
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	<strong>Changes in Customs duty</strong></div>
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	In Budget 2019, the government announced a slew of changes to Customs duty in order to meet multiple objectives, including promotion of clean energy, curbing non-essential imports, boosting domestic manufacturing and raising revenue. Customs duty was cut on several inputs to incentivise domestic production and increased on finished products to garner additional revenues.</div>
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	The government had said it was expecting a 19 per cent growth in Customs collection to Rs 1.5 trillion for 2019-20.</div>
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RELATED BUDGET TERMS

Learn what is Customs Duty, Customs Duty Definition, Customs Duty News and more here at Business Standard.

What is Customs Duty, Customs Duty Definition, Customs Duty News

What is Customs duty

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	The Goods and Services Tax (GST) is a uniform indirect tax levied on goods and services across the country. GST, as an umbrella tax, replaced central taxes like central excise, service tax, additional duties of excise &amp; customs, special additional duty of customs, besides cesses and surcharges, on supply of goods and services.</div>
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	<strong>Central GST and State GST</strong></div>
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	CGST is levied on intrastate supplies by the central government and SGST is levied on intrastate supplies by respective state governments.&nbsp;</div>
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	<strong>Integrated GST</strong></div>
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	IGST is levied on interstate supplies by the Centre (equal to CGST + SGST combined on supplies made within the state).</div>
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	Any supply of goods or services or both on interstate basis typically attracts IGST on the consideration thereof.</div>
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	<strong>Key features of GST</strong></div>
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	* GST envisages all transactions and processes to be done only through the electronic mode, to achieve a non-intrusive administration. This minimises the taxpayer&#39;s physical interaction with tax officials.</div>
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	* GST provides for the facility of auto-populated monthly returns and annual return.</div>
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	* It also facilitates taxpayers by prescribing grant of refund within 60 days, and provisional release of 90 per cent refund to exporters within 7 days.</div>
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	* Further facilitation measures include interest payment if refund is not sanctioned in time, and refund to be directly credited to bank accounts.</div>
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	* Comprehensive transitional provisions for ensuring smooth transition of existing taxpayers to GST regime, credit for available stocks, etc.</div>
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	* Other provisions include system of GST compliance rating, etc.</div>
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	* Anti-profiteering provisions for protection of consumer rights: Any benefit by way of reduction in rate of tax or increase in input tax credit arising due to introduction of GST are passed on to customers (through reduction in sale price) by way of commensurate reduction in prices.&nbsp;</div>
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	* Under the GST regime, exports are zero-rated in entirety, unlike the earlier system where refund of some of the taxes did not take place due to fragmented nature of indirect taxes between the Centre and states.</div>
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	* GST is largely technology-driven and reduces the human interface to a great extent</div>
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	* GST is believed to have improved ease of doing business in India.</div>
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Learn what is meant by Goods and Services Tax, GST definition, types of GST, GST rates and more GST news here at Business Standard.

What is GST, Types of GST, GST News, Goods and Services Tax Updates

Goods and Services Tax

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	An indirect tax is one that is not paid directly by a person to the government but collected by an intermediary and passed on to the government. Indirect taxes are imposed on goods and services on the basis of production, supply, sale or purchase of products or provision of services, in the form of goods and services tax (GST).</div>
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	GST, rolled out in 2017, replaced various indirect tax laws that previously existed in India, such as import and export duty, excise, sales tax, value-added tax (VAT), service tax, entertainment tax, electricity duty, tax on passenger fares, freights etc.</div>
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	<strong>How are indirect taxes collected?</strong></div>
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	An indirect tax is collected from the consumer by an intermediary, such as manufacturer, trader or service provider. The intermediary files a tax return and forwards the tax proceeds to the government with the tax return. The consumer bears the final economic burden of the tax by paying more for the product.</div>
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	By comparison, direct taxes are imposed on persons and collected by the government directly from those on whom they are imposed.</div>
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	In indirect taxation, the obligation of tax payment varies from one consumer to another, as these taxes are levied by the government on goods and services &mdash; not on the income, profit or revenue of an individual. These taxes can be shifted from one taxpayer to another. This is unlike direct taxes, which are borne by the person on whom the tax is levied.</div>
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	<strong>What is GST?</strong></div>
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	GST was rolled out on July 1, 2017, as India&rsquo;s most comprehensive indirect tax reform. It consolidated multiple indirect tax that existed previously into a single one. The implementation of GST aimed to make the indirect tax system more unified across the many states of the country. Read more... (https://www.business-standard.com/about/what-is-goods-and-services-tax)&nbsp;</div>

Learn what is Indirect tax, Indirect tax Calculation, Definition and more Indirect tax news here at Business Standard.

What is Indirect tax, Indirect tax News, Budget 2020 News, Indirect tax Calculation

Indirect Tax

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	Countervailing duty (CVD) is a specific form of duty that the government imposes in order to protect domestic producers by countering the negative impact of import subsidies. CVD is thus an import tax by the importing country on imported products.</div>
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	To make their products cheaper and boost their demand in other countries, foreign governments sometimes provide subsidy to their producers. To avoid flooding of the market in the importing country with these goods, the government of the importing country imposes countervailing duty, charging a specific amount on import of such goods.</div>
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	The duty nullifies and eliminates the price advantage (low price) enjoyed by an imported product when it is given subsidies or exempted from domestic taxes in the country where they are manufactured.</div>
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	The duty raises the price of the imported product, bringing it closer to its true market price. In this way, the government is able to provide a level playing field for domestic products.</div>
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	The World Trade Organization (WTO) permits the imposition of countervailing duty by its member countries. In India, the CVD is imposed as an additional duty besides customs on imported products when such products are given tax concession in the country of their origin.</div>
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	The levy of anti-dumping duty is both exporter-specific and country-specific. It extends to the imports from only that country in respect of which dumping has been alleged and the complaint has been filed and duty recommended. Such duty does not apply to imports from other countries in respect of which the domestic industry has not alleged dumping.</div>
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	<strong>Who imposes countervailing measures in India?</strong></div>
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	The countervailing measures in India are administered by the Directorate General of Anti-dumping and Allied Duties (DGAD), in the commerce and industry ministry&rsquo;s department of commerce. While the department of commerce recommends anti-dumping duty, provisional or final, it is the department of revenue in the finance ministry that acts upon the recommendation within three months and imposes such duties.</div>
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Learn what is Countervailing Duty, Countervailing Duty News, Countervailing Duty Definition and more here at Business Standard.

What is Countervailing Duty, Countervailing Duty News, Countervailing Duty Definition

Countervailing Duty

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	Excise duty is a form of tax imposed on goods for their production, licensing and sale. An indirect tax paid to the Government of India by producers of goods, excise duty is the opposite of Customs duty in that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country.</div>
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	At the central level, excise duty earlier used to be levied as Central Excise Duty, Additional Excise Duty, etc. However, the Goods and Services Tax (GST), introduction in July 2017, subsumed many types of excise duty. Today, excise duty applies only on petroleum and liquor.</div>
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	Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.</div>
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	Alcohol does not come under the purview of GST as an exclusion mandated by constitutional provision. States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST.</div>
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	After GST was introduced, excise duty was replaced by central GST because excise was levied by the central government. The revenue generated from CGST goes to the central government.</div>
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	<strong>Types of excise duty in India</strong></div>
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	Before GST kicked in, there were three kinds of excise duties in India.</div>
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	<strong>Basic Excise Duty</strong></div>
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	Basic excise duty is also known as the Central Value Added Tax (CENVAT). This category of excise duty was levied on goods that were classified under the first schedule of the Central Excise Tariff Act, 1985. This duty was levied under Section 3 (1) (a) of the Central Excise Act, 1944. This duty applied on all goods except salt.</div>
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	<strong>Additional Excise Duty</strong></div>
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	Additional excise duty was levied on goods of high importance, under the Additional Excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957. This duty was levied on some special category of goods.</div>
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	<strong>Special Excise Duty</strong></div>
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	This type of excise duty was levied on special goods classified under the Second Schedule to the Central Excise Tariff Act, 1985.</div>

Learn What is Excise Duty, Excise Duty Definition, Excise Duty News and more here at Business Standard.

Page 5 - Latest Updates on Customs duty

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