## Policy Analysis Report: Central Excise Notification No. 31/2022
**1. Executive Summary:**
This report analyzes Notification No. 31/2022-Central Excise, issued by the Ministry of Finance, Department of Revenue, on September 30, 2022. This notification amends Notification No. 11/2017-Central Excise, introducing specific excise duties on motor spirit (petrol) and high-speed diesel (HSD) intended for retail sale and not blended with ethanol/methanol or biodiesel, respectively. The amendment aims to differentiate the excise duty based on whether the fuel is branded or unbranded. The key change involves introducing two new serial numbers (2A and 3A) to the original notification's table, specifying per-liter excise duties for unblended petrol and HSD with and without brand names. The effective dates for these provisions are November 1, 2022, for petrol and April 1, 2023, for HSD.
**2. Introduction:**
The purpose of this report is to provide an informative analysis of Notification No. 31/2022-Central Excise, focusing on its specific amendments to the existing Central Excise framework as detailed in the provided text. This report aims to inform stakeholders in the fuel retail industry about the new excise duty structure for unblended petrol and diesel.
**3. Policy Overview:**
* This notification is an *amendment* to the existing Notification No. 11/2017-Central Excise, dated June 30, 2017.
* **Core Objective(s):** The core objective, as inferred from the provided text, is to establish a specific excise duty framework for motor spirit (petrol) and high-speed diesel (HSD) intended for retail sale that are not blended with ethanol/methanol or biodiesel, respectively. Furthermore, it aims to differentiate the excise duty rates based on whether the fuel is sold under a brand name or not.
**4. Background and Rationale:**
The amendment likely addresses the need to separately categorize and tax unblended petrol and HSD intended for retail sale. The text suggests a specific focus on fuels not conforming to Bureau of Indian Standards specifications for blended fuels. The differentiation between branded and unbranded fuel suggests a revenue strategy that takes into account the perceived value and market positioning of branded fuel.
**5. Key Provisions / Changes:**
This notification introduces the following key changes to Notification No. 11/2017-Central Excise:
* **Specific Part of Original Policy Changed:** The amendment primarily affects the "Table" within the original notification, specifically related to entries concerning motor spirit and high-speed diesel.
* **New Rule/Provision:**
* Two new serial numbers (2A and 3A) are inserted into the table:
* **2A:** Motor spirit (petrol) intended for retail sale, not blended with ethanol/methanol:
* Without a brand name: Rs. 3.40 per litre
* With a brand name: Rs. 4.60 per litre
* **3A:** High-speed diesel (HSD) intended for retail sale, not blended with biodiesel:
* Without a brand name: Rs. 3.80 per litre
* With a brand name: Rs. 6.20 per litre
* A proviso is added to existing entries (Sl. No. 2 and Sl. No. 3) stating that they will *not* apply to unblended petrol (from Nov 1, 2022) and unblended HSD (from April 1, 2023) intended for retail sale.
* **Difference/Effect of Change:** The amendment creates a separate excise duty structure for unblended petrol and HSD, with different rates for branded and unbranded fuels. This clarifies the applicable excise duty for these specific types of fuel, which were potentially covered under broader categories previously.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Fuel retail companies and distributors
* Petroleum product manufacturers and suppliers
* Consumers of motor spirit (petrol) and high-speed diesel (HSD)
* The Bureau of Indian Standards
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Government (Ministry of Finance, Department of Revenue) is responsible for implementing and overseeing this notification.
* **Timelines:**
* The new excise duties on unblended petrol (Serial No. 2A) are effective from November 1, 2022.
* The new excise duties on unblended HSD (Serial No. 3A) are effective from April 1, 2023.
* Fuel retailers will need to adjust their pricing and reporting mechanisms to comply with the new excise duty rates for unblended petrol and HSD, differentiating between branded and unbranded products.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes are:
* **Revenue Generation:** Increased excise duty collection, particularly from branded unblended fuels.
* **Market Differentiation:** Clearer price differentiation between blended and unblended fuels, and between branded and unbranded options.
* **Compliance:** Clear guidelines for the excise duty applicable to unblended petrol and HSD, potentially reducing ambiguity and improving compliance.
* **Potential Impact:** Depending on market response fuel companies might change pricing strategies. Consumers might see a rise in cost related to branded, unblended petrol and HSD.
**9. Conclusion:**
Notification No. 31/2022-Central Excise introduces significant amendments to the existing excise duty framework by establishing specific rates for unblended petrol and HSD intended for retail sale. The differentiation based on branding and the specified implementation timelines are crucial for stakeholders in the fuel retail industry to understand and comply with. This amendment provides greater clarity and potentially impacts pricing strategies and revenue generation in the sector.
Key Entities Referenced
Ministry of Finance: The Indian government ministry responsible for financial matters.
Department of Revenue: A department within the Ministry of Finance.
Central Excise Act, 1944: A law related to central excise duties in India.
Central Government: The government of India.
Bureau of Indian Standards: The national standards body of India.
High Speed Diesel HSD: A type of diesel fuel.
New Delhi: Capital of India
Mayapuri, New Delhi: Location of the Dte. of Printing at Government of India Press.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-30092022-239251
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CG-DL-E-30092022-239251
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 671] नई ददल्ली, ि्क्रिार, जसतम्ब र 30, 2022/आजश्ि न 8, 1944
No. 671] NEW DELHI, FRIDAY, SEPTEMBER 30, 2022/ASVINA 8, 1944
जित्त म्ं ालय
(रािस्ट्ि जिभाग
अजधसचू ना
नई ददल् ली, 30 जसतम्ब र, 2022
स.ं 31/2022-केन्दर ीय उत्प ाद िल्् क
सा.का.जन. 753(अ .—केन्द रीय सरकार, केन्द रीय उत् पाद-ि्ल् क अधजनजयम, 1944 (1944 का 1 की धारा 5क
की उपधारा (1 द्वारा प्रदत् त िजतियय का प्रयगग करत े ुए और, एतद्द्वारा, भारत सरकार, जित्त मं्ालय (रािस्ट्ि जिभाग
की अजधसूचना संख्या 01/2022-केन्द रीय उत् पाद-ि्ल् क, ददनांक 1 फ़रिरी, 2022, जिसे सा.का.जन. 90(अ), ददनांक
1 फ़रिरी, 2022, के तहत भारत के रािप्, असाधारण, के भाग II, खड 3, उप-खंड (i) म ें प्रकाजित दकया गया था, का
अजधक्रमण करत े ुए, यह समाधान हगन े पर दक लगकजहत म ें ऐसा करना आिश् यक ह, एतद्द्वारा भारत सरकार के जित् त
मं्ालय (रािस्ट् ि जिभाग की अजधसूचना स.ं 11/2017 केन्द रीय उत् पाद-ि्ल् क, तारीख 30 िून, 2017 िग संख् यांक
सा.का.जन. 793(अ , तारीख 30 िून, 2017 द्वारा भारत के रािप्, असाधारण, भाग II, खंड 3, उपखंड (i में प्रकाजि त
की गई थी, का और सिं गधन करती ह, अथाात ्:-
I. उक्त अजधसूचना की अन्सचू ी म,ें -
(i) स्ट् तम् भ (3 म ें क्र.सं. 2 के सामने, मद (ii के पश् चात् जनम्न जलजखत परन्दत ्क कग अंत:स्ट्थ ाजपत दकया िाता ह,
अथाात ्:-
“परन्दत,् 1 निंबर, 2022 से प्रभािी, इस क्र. सं. में अंतर्विष्ट कगई बात मगटर जस्ट्प्रट जिसे साधारणतया पेरगल के रूप म ें
िाना िाता ह, िग उपभगतियाओं कग फ्टकर जिक्रय के जलए आिजयत ह, एथेनॉल या मेथनॉल के साथ इतना जमजित
नहीं ह दक जमजित मगटर जस्ट्पररट के जलए समय-समय पर भारतीय मानक ब्यरू ग के जिजनदेि के अनरू् प हग।” ;
6614 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(ii) क्र. सं. 2 और उससे संबंजधत प्रजिजष्टय के पश् चात् जनम्न जलजखत क्रम संख् या और प्रजिजष्टय कग अंत:स्ट्थ ाजपत दकया
िाता ह, अथाात ्:-
“2क 2710 मगटर जस्ट्प्रट जिसे साधारणतया पेरगल के रूप में िाना
िाता ह, िग उपभगतियाओं कग फ्टकर जिक्रय के जलए
आिजयत ह, एथेनॉल या मथे नॉल के साथ इतना जमजित
नहीं ह दक जमजित मगटर जस्ट्पररट के जलए समय-समय पर
भारतीय मानक ब्यरू ग के जिजनदिे के अन्रूप हग –
(i) ब्ांड नाम के जबना रु. 3.40 प्रजत लीटर
(ii) ब्ांड नाम के साथ रु. 4.60 प्रजत लीटर ”;
(iii) स्ट् तम् भ (3 म,ें क्र. सं. 3 के सामने, मद (ii के पश् चात ् जनम्न जलजखत परन्दत ्क कग अतं :स्ट्थ ाजपत दकया िाता ह,
अथाात ्:-
“परन्दत,् 1 अप्रल , 2023 से प्रभािी, इस क्र. स.ं में अंतर्विष्ट कगई बात हाई स्ट्पीड डीिल (एच एस डी कग लाग ू
नहीं हगगी िग उपभगतियाओं के फ्टकर जिक्रय के जलए आिजयत ह , जिसे िनस्ट्पजत तले से प्राप्त लंबी िरंखला
फ टी एजसड के एल्काइल एस्ट्टर जिसे आमतौर पर ि ि-डीिल के रूप म ें िाना िाता ह , के साथ इतना जमजित
नहीं ह दक जमजित डीिल के जलए समय-समय पर भारतीय मानक ब्यूरग के जिजनदेि के अनरू् प हग।”
(iv) क्र.सं. 3 और इससे संबंजधत प्रजिजष्टय के पश् चात् जनम्न जलजखत क्रम संख् या और प्रजिजष्टय कग अंत:स्ट्थ ाजपत
दकया िाता ह, अथाात ्:-
“3क 27101930 हाई स्ट्पीड डीिल (एच एस डी जमजित
डीिल, िग उपभगतियाओं के फ्टकर जिक्रय
के जलए आिजयत ह, जिसे िनस्ट्पजत तले
से प्राप्त लंबी िरंखला फ टी एजसड के
एल्काइल एस्ट्टर जिसे आमतौर पर ि ि-
डीिल के रूप में िाना िाता ह , के साथ
इतना जमजित नहीं ह दक जमजित डीिल
के जलए समय-समय पर भारतीय मानक
ब्यूरग के जिजनदेि के अन्रूप हग।
(i) ब्ांड नाम के जबना रु.3.80 प्रजत लीटर
(ii) ब्ांड नाम के साथ रु. 6.20 प्रजत लीटर”;
II. ताजलका के बाद, जनम्नजलजखत परंत्क अंत:स्ट्थाजपत दकया िाएगा, अथाता ्: -
“परन्दत् इस अजधसूचना की कगई बात जनम्नजलजखत कग लागू नहीं हगगी
(a) 1 निम् बर 2022 से पहले उतिय सारणी के क्रम संख्या 2A में जिजनर्ददष्ट िस्ट्त्ए ंपर;
(b) 1 अप्रल 2023 से पहल े उतिय सारणी के क्रम संख्या 3A में जिजनर्ददष्ट िस्ट्त्एं पर ।”
[फा. सं. 190354/295/2021- टी.आर.यू.]
जिक्रम िानेरे, अिर सजचि[भाग II—खण् ड 3(i)] भारत का रािप् : असाधारण 3
रटप्प ण : मलू अजध सूचना सं. 11/2017-केन्द रीय उत्पाद-ि्ल्क , तारीख 30 िनू , 2017 कग संख् यांक सा.का.जन. 793(अ ,
तारीख 30 िून, 2017 द्वारा भारत के रािप्, असाधारण, भाग II, खंड 3, उपखंड (i , में प्रकाजित की गई थी
और अजध सूचना सं. 16/2022-केन्द रीय उत् पाद ि्ल् क, तारीख 15 ि्लाई, 2022 द्वारा अंजतमबार संिगजधत की
गई थी, िग सा.का.जन. 579(अ , तारीख 15 ि्लाई, 2022 द्वारा भारत के रािप्, असाधारण, भाग II, खंड
3, उपखंड (i म ेंप्रकाजित की गई थी ।
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 30th September, 2022
No. 31/2022 -Central Excise
G.S.R. 753(E).—In exercise of the powers conferred by sub-section (1) of section 5A of the Central
Excise Act, 1944 (1 of 1944), and in supersession of notification of the Government of India in the Ministry
of Finance (Department of Revenue), No. 01/2022-Central Excise, dated 1st February, 2022, published in
the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 90(E), dated the
1st February, 2022, the Central Government, on being satisfied that it is necessary in the public interest so to
do, hereby makes the following further amendments in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), No. 11/2017-Central Excise, dated the 30th June, 2017,
published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.
793(E), dated the 30th June, 2017, namely:-
In the said notification,-
I. in the Table, -
(i) against Sl. No. 2, in column (3), after item (ii), the following proviso shall be inserted, namely:-
“Provided that, with effect from the 1st day of November, 2022, nothing contained in this Sl. No.
shall apply to motor spirit, commonly known as petrol, which is intended for retail sale to
consumers, not so blended with ethanol or methanol as conforming to Bureau of Indian Standards
specifications from time to time for blended motor spirit.”;
(ii) after Sl. No. 2 and the entries relating thereto, the following serial number and entries shall be
inserted, namely: -
“2A. 2710 Motor spirit commonly known as petrol which is intended
for retail sale, not so blended with ethanol or methanol as
conforming to Bureau of Indian Standards specifications
from time to time for blended motor spirit-
(i) without a brand name; Rs. 3.40 per litre
(ii) with a brand name. Rs. 4.60 per litre”;
(iii) against Sl. No. 3, in column (3), after item (ii), the following proviso shall be inserted, namely:-
“Provided that, with effect from the 1st day of April, 2023, nothing contained in this Sl. No. shall
apply to High Speed Diesel (HSD), which is intended for retail sale to consumers, not so blended
with alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-
diesels as conforming to Bureau of Indian Standards specifications from time-to-time for blended
diesel.”;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(iv) after Sl. No. 3 and the entries relating thereto, the following serial number and entries shall be
inserted, namely:-
“3A. 27101930 High speed diesel (HSD) intended for retail sale, not
so blended with alkyl esters of long chain fatty acids
obtained from vegetable oils, commonly known as
bio-diesels as conforming to Bureau of Indian
Standards specifications from time-to-time for blended
diesel -
(i) without a brand name; Rs. 3.80 per litre
(ii) with a brand name. Rs. 6.20 per litre”;
II. After the Table, the following proviso shall be inserted, namely: -
“Provided that nothing contained in this notification shall apply to-
(a) the goods specified against serial number 2A of the Table above before the 1st day of November,
2022;
(b) the goods specified against serial number 3A of the Table above before the 1st day of April,
2023”.
[F. No. 190354/295/2021-TRU]
VIKRAM WANERE, Under Secy.
Note : The principal notification No. 11/2017-Central Excise, dated the 30th June, 2017 was published in
the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 793(E),
dated the 30th June, 2017 and last amended by notification No.16/2022-Central Excise, dated the
15th July, 2022 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),
vide, number G.S.R. 579 (E), dated the 15th July, 2022.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.