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The government has imposed a 10 per cent basic customs duty (BCD) on imported chargers and adapters, while exempting parts or raw material used for making these products out of the duty ambit. The move reinstates an advantage that local manufactures had before the introduction of GST.
According to The Economic Times, the industry welcomed the move, saying the step would provide stimulus to local manufacturing and take care of a loophole in rules that allowed for the import of chargers or adapters without paying any duty. The revenue department said a rule was being amended to state that exempt goods would include “static converters for automatic data processing machines and units thereof, and telecommunication apparatus, other than static converters for cellular mobile phones,” as per a notification dated July 14.
According to The Economic Times, the industry welcomed the move, saying the step would provide stimulus to local manufacturing and take care of a loophole in rules that allowed for the import of chargers or adapters without paying any duty. The revenue department said a rule was being amended to state that exempt goods would include “static converters for automatic data processing machines and units thereof, and telecommunication apparatus, other than static converters for cellular mobile phones,” as per a notification dated July 14.
The move would create a duty differential in the current tax regime which was being offered pre-GST by imposing a countervailing duty of 12.5 percent on imports.
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