No Exemption For SEZ Units Under The New Central Excise Bill
(MENAFN- KNN India)
New Delhi, Jun 5 (KNN) The proposed Central Excise Bill, 2024, aims to curb alleged duty evasion by removing the automatic exemption for excisable goods produced in Special Economic Zones (SEZs) and brought into domestic tariff areas.
If passed, SEZ units would require a separate government notification to continue enjoying duty exemptions.
"The move could restrict misuse of SEZ incentives and curb duty evasion," said a senior government official, although the Bill is not expected to be part of the upcoming full Budget.
Currently, central excise duties only apply to a few goods like tobacco, petroleum products, and natural gas, with most items now under the GST regime.
However, excise remains a major revenue source, collecting over Rs 3 trillion in fiscal 2023-24.
The Bill outlines measures like replacing the existing CENVAT credit system, extending the duty recovery period to 3 years, shifting registration onus to those seeking credits, and reducing refund timelines to 60 days.
"By streamlining processes and regulations, the Bill aims to create a more business-friendly environment," said Saurabh Agarwal, partner at EY.
"Provisions like transferring unutilised credits and longer recovery periods show the government's commitment to facilitating smooth operations for enterprises", he added.
While curbing duty evasion, the proposed changes could impact operations of SEZ units significantly benefiting from excise exemptions on domestically-supplied goods.
(KNN Bureau)
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