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Union Budget 2020-21: Top 10 Indirect Tax Highlights |
| 1. The exemption from Social Welfare Surcharge (SWS) on specified items has been withdrawn, thereby SWS be applicable @10% of BCD on all items of Chapters 84 and 85 w.e.f. 02 February 2020
2. Various Customs Duty exemptions have been withdrawn/ rationalised w.e.f. 02 February 2020. Remaining Customs Duty exemptions shall be comprehensively reviewed by September, 2020 after seeking public opinion on their relevance 3. Customs law is being amended for enabling verification of imports under Trade Agreements. In case of doubt, the preferential tariff treatment may be suspended, i.e. goods would be cleared only on furnishing security equal to differential duty. In certain cases, the preferential treatment may be denied without further verification 4. Health Cess @5% imposed w.e.f. 02 February 2020 on all medical products falling under the headings 9018, 9019, 9020, 9021 and 9022 of the First Schedule to the Customs Tariff Act, 1975 5. An Electronic Duty Credit Ledger is being created in the Customs system, for enabling the duty credit in lieu of duty remission (in respect of exports) and other benefits in electronic form for its usage, transfer etc. 6. Measures for the imposition of Safeguard Duty and Anti-dumping Duty are being made more comprehensive and wider in scope (including anti-circumvention measures) in order to protect the domestic industry 7. No GST to apply on the transfer of business assets without consideration in the cases where the benefit of input tax credit has not been availed on such assets. An amendment in this respect is proposed in Schedule II of the CGST Act with retrospective effect (i.e., 01 July 2017) 8. Offence of fraudulent availment of input tax credit without invoice is being made cognizable and non-bailable under the GST law. Any beneficiary of such transaction and at whose instance such transactions are conducted could also be made liable for the offence 9. Transition provisions under the GST law proposed to be amended with retrospective effect (i.e., 01 July 2017), so as to prescribe the time limit and the manner for availing the input tax credit pertaining to the previous regime 10. An Aadhar based verification of taxpayers is being introduced for weeding out dummy and non-existent persons. A system of cash reward envisaged to incentivise seeking of invoices by customers (These key highlights have been prepared basis the budget documents released by the Union Government) |