The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the proposals to amend the Customs and Excise Act. The proposal to amend the act relates to abolition of cesses and surcharges on various goods and services to facilitate implementation of GST Regime, the Ministry of Finance said in a press release.
According to the finance ministry, the approved proposals include Amendment to the Customs Act, 1962; Amendments to the Customs Tariff Act, 1975; Amendment to the Central Excise Act, 1944; Repeal of the Central Excise Tariff Act, 1985; and Amendment or repeal of the provisions relating to Acts under which cesses are levied.
The proposals are expected to result in various benefits. Insertion of Sections 108A and 108B in the Customs Act, 1962 seeks to provide for furnishing of information relating to import/export of goods by specified persons to enable analysis and detection of cases of under/over-valuation in imports and exports, misuse of export promotion schemes including the Drawback Scheme and violations of the provisions of the Customs Act and various other laws under which Customs officials have been authorised to effectively implement these laws.
Amendments or repeal of various provisions of other Acts, which will no longer be relevant consequent upon roll out of GST, will result in cleansing of the irrelevant portions from the Statute Book and reduce multiplicity of taxes.