The Central Board of Indirect Taxes & Customs has invited suggestions on the draft ‘Central Excise Bill, 2024’, aimed at enacting a comprehensive modern central excise law. The bill emphasizes promoting ease of doing business and repealing old and redundant provisions.
Objectives of the Bill
- Remove outdated and redundant provisions following the introduction of Goods and Services Tax (GST).
- Align excise duty provisions with GST legislation.
- Modernize India’s tax framework.
- Ensure alignment with the current economic environment.
Structure of the Bill
- Comprises twelve chapters, 114 sections, and two schedules.
- Stakeholders have been asked to send their comments by June 26.
- Will replace the Central Excise Act, 1944.
Expert Opinion
- Tanushree Roy, Director – Indirect Tax, Nangia Andersen India, highlights the criticality of modernizing India’s tax framework.
- Brijesh Kothary – Partner, Khaitan & Co., emphasizes the need to revamp the law due to limited applicability post-GST introduction.
Key Changes and Provisions
- Revamping to resolve past and ongoing disputes.
- Government empowered to extend time limits in special circumstances.
- Incorporation of CENVAT Credit as part of the new bill.
- Borrowing the concept of ‘related persons’ from customs law.
- Proposed reduction of the time limit for claiming refunds from 2 years to 1 year.
- Departmental authorities may get 3 years to raise demands.
Multiple Choice Questions (MCQs) with Answers:
- What is the main aim of the draft ‘Central Excise Bill, 2024’?
- A) To introduce new taxation policies
- B) To remove outdated and redundant provisions
- C) To increase tax rates
- D) To simplify customs regulations
- Answer: B) To remove outdated and redundant provisions
- How many chapters does the Central Excise Bill, 2024 comprise?
- A) Ten chapters
- B) Twelve chapters
- C) Fifteen chapters
- D) Eight chapters
- Answer: B) Twelve chapters
- Who highlighted the criticality of modernizing India’s tax framework?
- A) Brijesh Kothary
- B) Central Board of Indirect Taxes & Customs
- C) Tanushree Roy
- D) Government of India
- Answer: C) Tanushree Roy
- What concept is proposed to be incorporated as part of the new bill according to Brijesh Kothary?
- A) CENVAT Credit
- B) Value Added Tax (VAT)
- C) Goods and Services Tax (GST)
- D) Income Tax
- Answer: A) CENVAT Credit
- What is the proposed reduction in the time limit for claiming refunds?
- A) From 5 years to 2 years
- B) From 2 years to 1 year
- C) From 3 years to 6 months
- D) From 1 year to 6 months
- Answer: B) From 2 years to 1 year