Top Stories Budget 2025-2026: CBIC releases FAQs w.r.t. Indirect Tax Amendment The purpose of these FAQs is to elucidate important indirect tax amendments By Eeva Mary Sanil – On February 2, 2025 12:28 pm – 2 mins read In relation to the Union Budget 2025–2026, the Central Board of Indirect Taxes and Customs ( CBIC ) has published a series of frequently asked questions. There are five sections to these FAQs: Introduction, Central Excise Act 1944, Central Excise Duty and Service Tax, Customs Tariff Act, Customs Act 1962, Customs Duty Rate Changes, and Rationalization of Custom Tariff Structure.
To facilitate better comprehension, compliance, and transparency in taxation, these frequently asked questions are designed to assist businesses and taxpayers in comprehending the substantial changes to Customs, GST, and Excise Duty. Let’s briefly look at what the FAQs hold: Get Complete Coverage on Budget 2025-26, Click Here
Rationalisation of Customs Duty Structure The CBIC FAQs delve deep into the rationalisation of Customs tariff rates. The government has continued simplifying the Customs duty structure by reducing the number of tariff slabs and addressing inverted duty structures in specific sectors. These changes encourage domestic manufacturing by increasing duties on certain finished goods while lowering taxes on raw materials. Similarly, changes focus on supporting industries like electronics, renewable energy, and critical minerals processing, which are pivotal for India’s long-term economic growth. This rationalisation brings optimism for the future of these industries and the country’s overall economic development. Amendments in GST laws for Better Compliance
The new GST-related modifications, which aim to simplify filing GST returns, are also included in the FAQs. The government has ensured a more secure tax environment by introducing more substantial measures to stop fraudulent input tax credit applications. The CBIC clarified the modifications to GST exemptions and concessional rates that will apply to different industries. This is a step to guarantee that companies can use tax rates correctly. Get Complete Coverage on Budget 2025-26, Click Here Modifications on Excise Duty The FAQs address higher taxes on particular goods in sectors like tobacco and petroleum that are subject to excise taxes. This is done to balance public policy objectives and income needs. Duty rate adjustments reflect market conditions and inflation.
IT and Digital Taxation Changes The FAQ also includes tax modifications that affect online transactions and e-commerce platforms. Significant new reforms are anticipated to simplify reporting requirements for e-commerce transactions, particularly for GST-registered sellers, and improve tax compliance among online enterprises. The CBIC FAQs on indirect tax amendments have been released to help taxpayers understand the changes made in Budget 2025–2026. Individuals and businesses are advised to review these frequently asked questions to ensure proper compliance with the most recent compliance regulations. Read the FAQ document by clicking the blue button below.