CBIC Releases Draft Bill to Amend Central Excise Act

June 5, 2024

The Central Board of Indirect Taxes and Customs (CBIC) just recently said that a draft Bill to change the Central Excise Act would be made public. This is being done before a new government is formed, and it aims to change a rule that has been in place for more than 80 years.

Objectives of the New Bill

The goal of the suggested Bill is to bring Central Excise law up to date. CBIC says the new law will focus on making it easier for businesses to do their work by simplifying rules, getting rid of old ones, and adding any changes that are needed to fit the current business and economic climate.

Details of the Bill

The current Act has eleven chapters, more than 110 sections, and four schedules. The draft of the new Bill has twelve chapters, 114 sections, and two schedules. This reorganization shows that the goal is to make the law easier to understand and useful.

Role of GST and Excise Duty

Since the Goods and Services Tax (GST) went into effect, Central Excise taxes have mostly been applied to goods that are used to make oil. The new Bill not only changes the excise rules, but it also takes into account ongoing talks about adding petroleum products to the GST, which are not presently taxed.

Public Consultation Process

As part of the pre-legislative feedback process, CBIC wants people with an interest in the Bill to look it over and give their thoughts by June 26. This open method lets people in the public and in the business world have a say in how the law is finally written.

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