UNION BUDGET 2018-19 & Recent Updates under GST - Hiregange & Associates

08-02-2018 Hiregange Team
Foreword

The Union Budget in India is a comprehensive statement of the Government’s finances including spending, revenues, deficit or surplus, investment and borrowings, for the coming fiscal year. The budget can steer the economy of the country due to so many correctional, directional changes taken for the short term. It can also provide direction on what is expected in the next few years.

With this Budget edition, we bring before you the key changes which have taken place in the Indirect Taxation. We would be glad to hear from you for your valuable feedback.

 Economic Survey 2017-18

  • The real GDP growth projections for 2017-18 is expected to be around 6.75 per cent, which is further expected to reach to 7 to 7.5 per cent in 2018-19 driven by major reforms initiated by the government.
  • The Economic Survey 2017-18 points out that there were 9.8 million unique GST registrants slightly more than the total Indirect Tax registrants under the old system of indirect taxation.
  • Last year Survey had estimated that India’s Inter-State trade in goods was between 30 and 50 percent of GDP. But the GST data suggests that India’s internal trade in goods and services (excludes non-GST goods and services) is actually even higher and is about 60 percent of GDP.

 Budget updates: Indirect Taxes

Key Changes in Customs Rate and Cess

Key Highlights:

  • Custom Duty rate increased for various products
  • EC and SHEC on imported goods has been removed
  • New levy of Social Welfare Surcharge(SWS) introduced on all imported goods to provide for social welfare schemes of the Government (SWS would be charged on Basic custom duty)
    • Import of Petrol, Silver and Gold- 3% SWS
    • Other Imported goods (except goods exempted from EC and SHEC)- 10%

Change in Rates of Custom Duty: 

Heading

Description

BCD Rate (Current)

BCD Rate (Proposed)

Chapter 8

cashew nuts in shell (raw cashew) falling under tariff item 0801

5%

2.5%

Chapter 15

  1. crude edible vegetable oils
  2. refined edible vegetable oils

(goods as specified under heading 1518)

12.5%

20%

30%

35%

Chapter 20

  1. orange fruit juice
  2. goods falling under tariff items
  3. Cranberry juice

(as falling under heading 2009)

30%

30%

10%

35%

50%

30%

Chapter 21

all goods, excluding compound alcoholic preparations

(as falling under heading 2106)

30%

50%

Chapter 33

All goods falling under headings 3303 to 3307

10%

20%

Chapter 34

All goods falling under heading 3406

10%

25%

Chapter 39

Parts or sub parts or accessories of cellular mobile phones falling under heading 3919, 3920 and 3926

10%

15%

Chapter 40

Truck and bus radial tyres (4011) Cushion/ Gasket of LEC/ LCD TV (4016)

Microphone Rubber Case/ Sealing Gasket used in the manufacture of mobile phones (4016 99 90)

10% NIL 10%

15%

10%

15%

Chapter 48

kites falling under tariff item 4823 90 90

10%

20%

Chapter 50

silk fabrics falling under heading 5007

10%

20%

  

Chapter 64

All goods falling under heading 6401 to 6405 All goods falling under heading 6406

10%

10%

20%

15%

Chapter 68

All goods falling under tariff item (6815 91 00)

10%

7.5%

Chapter 69

All goods falling under heading 6901 All goods falling under 6902 and 6903

10%

5%

7.5%

7.5%

Chapter 70

solar tempered glass

perform of silica

5%

NIL

Nil

5%

Chapter 71

cut and polished colored gemstones diamonds including non-industrial diamonds All goods falling under 7117

2.5%

2.5%

15%

5%

5%

20%

Chapter 73

Screws of Cellular Mobile Phones (7318) SIM Socket (7326)

10%

10%

15%<