16 Jul 2019

Indirect taxes

Source: Press Information Bureau (Budget 2019)

Following are the areas under which changes related indirect taxes mentioned in the budget;

Make In India

  • Basic Customs Duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera, etc.
  • Exemptions from Custom Duty on certain electronic items now manufactured in India withdrawn.
  • End-use based exemptions on palm stearin, fatty oils withdrawn.
  • Exemptions to various kinds of papers withdrawn.
  • 5% Basic Custom Duty imposed on imported books.
  • Customs duty reduced on certain raw materials such as:
    • Inputs for artificial kidney and disposable sterilized dialyzer and fuels for nuclear power plants etc.
    • Capital goods required for the manufacture of specified electronic goods.


  • Defence equipment not manufactured in India exempted from basic customs duty

Other Indirect Tax provisions

  • Export duty rationalized on raw and semi-finished leather
  • Increase in Special Additional Excise Duty and Road and Infrastructure Cess each by Rs. 1 per litre on petrol and diesel
  • Customs duty on gold and other precious metals increased
  • Legacy Dispute Resolution Scheme for quick closure of pending litigations in Central Excise and Service tax from the pre-GST regime