New central excise bill may lead to reduction in compliance burden

Further, the Bill intends to borrow the concept of ‘related persons’ from Customs and GST Laws.
New central excise bill may lead to 
reduction in compliance burden

NEW DELHI: The new central excise bill 2024, proposed by the central government, aims to streamline the excise law by incorporating the CENVAT Credit provisions, which were previously governed by a separate delegated legislation.

Further, the Bill intends to borrow the concept of ‘related persons’ from Customs and GST Laws. It will do away with the outdated provisions, incorporate the relevant regulations in the Act itself and align excise law with the GST and Customs framework for ensuring a more cohesive indirect tax system.

“The Bill may lead to a reduction in compliance burden, and provide a comprehensive legal framework better suited to the current economic landscape. While the Bill is a positive step towards modernisation, the assesses must avail the opportunity to get their concerns addressed by providing inputs to the CBIC by June 26th,” Rachit Jain, Partner at Lakshmikumaran & Sridharan Attorneys said.

The Central Board of Indirect Taxes & Customs (CBIC), under the Department of Revenue, Ministry of Finance, is seeking feedback on the draft ‘Central Excise Bill, 2024’ from stakeholders until June 26, 2024.

The CBIC has formulated the draft ‘Central Excise Bill, 2024’ to replace the outdated Central Excise Act, 1944. This new bill aims to establish a modern central excise law that focuses on facilitating business operations and eliminating obsolete provisions. The bill consists of twelve chapters, 114 sections, and two schedules.

According to Mahesh Jaising, Partner, Deloitte India, the Central Excise Bill, 2024 represents a significant step towards modernising India’s tax framework to align with the current economic environment and GST legislation. “The timing of the draft release and the deadline for comments suggest that the Bill might be introduced in the upcoming budget session,” Jaising said.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com