Home India Ministry of Finance EV notification...
Date: 15-Mar-2024 Category: Extra Ordinary State: Union Government Country: India

EV notification

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means (Description of the gazette notification)

  • Notification No. 19/2024-Customs amends Notification No. 50/2017-Customs, dated June 30, 2017, to revise customs duties on electrically operated vehicles.
  • Notification No. 20/2024-Customs further amends Notification No. 11/2018-Customs, dated February 2, 2018, in relation to the newly inserted item (2)(c) of S. No. 526A in Notification 19/2024.

Key Changes (Detailed description of key updates or changes. State facts and numbers)

  • Notification 19/2024 substitutes S. No. 526A in the Table of Notification 50/2017-Customs, modifying the customs duty structure for electrically operated vehicles.
  • For electrically operated vehicles imported in knocked down kit form, the customs duty is 15% if components are not interconnected and not mounted on a chassis, and 35% if components are interconnected but not mounted on a chassis.
  • For electrically operated vehicles imported in other forms, the customs duty is 100% for CIF value more than US $40,000, 70% for CIF value less than US $40,000, and 15% for vehicles with a minimum CIF value of US $35,000 imported under the 'Scheme to promote manufacturing of electric passenger cars in India' notified by the Ministry of Heavy Industries vide S.O. No. 1363 (E) dated 15th March, 2024.
  • The 15% duty under the 'Scheme to promote manufacturing of electric passenger cars in India' is valid until March 31, 2031.
  • A new condition number 117 is inserted in the Annexure, requiring a certificate from an officer of Joint Secretary rank in the Ministry of Heavy Industries for availing the 15% concessional duty.
  • The certificate must confirm that the importer has a valid approval letter under the 'Scheme to promote manufacturing of electric passenger cars in India', satisfies the scheme's conditions, and the imported vehicle quantity is within the scheme's limits as per Para 1.3.5 and 1.3.6.
  • Notification 20/2024 amends Notification No. 11/2018-Customs to include reference of sub-item (c) of item (2) of S. No. 526A, which relates to the 15% concessional duty based on the scheme to promote manufacturing of electric passenger cars in India.

Impact Analysis

Impact on Electric Vehicle Manufacturers

  • The sunset clause of March 31, 2031, provides a defined timeframe for the applicability of the 15% duty under the scheme.

Impact on Importers

  • The explanation clarifies the availability of exemptions even if some components are not imported in the kit, provided the kit is classifiable under heading 8703.

Impact on Consumers

  • Increased availability of electric vehicle models in the Indian market due to the manufacturing incentives.

Suggested Action Items

  • Monitor the implementation of the scheme and provide feedback to the government on any challenges faced.

Key Entities Referenced

Customs Act, 1962: The principal act governing customs duties in India. Section 25 empowers the government to grant exemptions from customs duty. Customs Tariff Act, 1975: An act to provide for the imposition of a tariff on goods imported into India and to regulate trade. Finance Act, 2018: An act of the Parliament of India which made amendments to various tax laws. Ministry of Finance (Department of Revenue): The government body responsible for issuing notifications related to customs duties. Ministry of Heavy Industries (MHI): The ministry responsible for administering the 'Scheme to promote manufacturing of electric passenger cars in India'. Notification No. 50/2017-Customs: The principal notification being amended, which provides the general framework for customs duty exemptions. Notification No. 11/2018-Customs: The notification being amended by Notification 20/2024-Customs. 'Scheme to promote manufacturing of electric passenger cars in India': A government scheme notified vide S.O. No. 1363 (E) dated 15th March, 2024, aimed at promoting the manufacturing of electric passenger cars in India.
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रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-15032024-253052 CG-DxLx-xEG-I1D5H0x3x2x0 24-253052 xxxGIDExxx ऄसाधारण EXTRAORDINARY भाग II—खण् ड 3—ईप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 193] नइ ददल्ली, िुक्रिार, माचच 15, 2024/ ाल्ग नु 25, 1945 No. 193] NEW DELHI, FRIDAY, MARCH 15, 2024/PHALGUNA 25, 1945 जित्त मत्रं ालय (राजस्ट्ि जिभाग) ऄजधसचू ना नइ ददल्ली, 15 माच,च 2024 स.ं 19/2024-सीमा िल्ु क सा.का.जन. 206(ऄ).—सीमा िुल्क ऄजधजनयम, 1962 (1962 का 52) की धारा 25 की ईप-धारा (1) और सीमा िुल् क ैरिर ऄजधजनयम, 1975 (1975 का 51) की धारा 3 की ईप धारा (12) के तहत प्रदत्त िजियों का प्रयोग करते हुए, केन्द्र सरकार, आस बात से संतुष्ट होते हुए दक ऐसा करना जनजहत में अिश्यक हर, एतदद्वारा, भारत सरकार, जित्त मंत्रालय (राजस्ट्ि जिभाग) की ऄजधसूचना संख्या 50/2017-सीमा िुल्क, ददनांक 30 जून, 2017, जजसे सा.का.जन. 785 (ऄ), ददनांक 30 जून, 2017 के तहत भारत के राजपत्र, ऄसाधारण, के भाग II, खण्ड 3, ईप-खण्ड (i) में प्रकाजित दकया गया था, में जनम्नजलजखत संिोधन करती ह,र यथा :- ईि ऄजधसूचना म,ें - (1) ताजलका म,ें क्रम संख्या 526क और ईससे संबंजधत प्रजिजष्टयों के जलए, जनम्नजलजखत क्रम संख्या और प्रजिजष्टयों को प्रजतस्ट्थाजपत दकया जाएगा, ऄथाचत:् - 1965 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (1) (2) (3) (4) (5) (6) “526क. 8703 जिद्युत चाजलत िाहन, यदद अयात दकया जाता ह-र (1) ऄधूरा या जबना तरयार दकया गया, बरैरीपरक, मोैर, मोैर जनयंत्रक, चाजचर, पािर कंरोल यूजनै, एनजी मॉजनैर, कॉन्द्ैरक्ैर, ब्रेक जसस्ट्ैम आलेजक्रक दबाि सजहत एक संपूणच िाहन को संयोजजत करने के जलए अिश्यक घैकों, भागों या ईप- संयोजन युि नॉकडाईन दकै के रूप म,ें चाहे व्यजिगत रूप से पूि-च संयोजन के साथ या नहीं, के साथ – (क) ईपरोि घैकों, भागों या ईप-संयोजन में स े 15% - - कोइ भी एकदसू रे के साथ जुडा हुअ नहीं ह र और चेजसस पर नहीं लगाया गया ह र (ख) ईपरोि घैकों, भागों या ईपसंयोजन में से - 35% - - कोइ एकदसू रे के साथ जुडा हुअ ह र लेदकन चेजसस पर नहीं लगाया गया ह र (2) ईपरोि (1) के जसिाय दकसी ऄन्द्य रूप म-ें (क) यूएस $40,000 से ऄजधक सीअइए मूल्य 100% - - के साथ (ख) ईपरोि (क) के ऄलािा ऄन्द्य 70% - - (ग) भारी ईद्योग मंत्रालय द्वारा का.अ. संख्या 15% - 117”; 1363 (ऄ) ददनांक 15 माचच, 2024 द्वारा ऄजधसूजचत 'भारत में आलेजक्रक यात्री कार जिजनमाचण संिर्द्नच स्ट् कीम' के प्रािधानों के ऄनुसार अयाजतत न्द्यूनतम सीअइए मूल्य यूएस $35,000 के साथ । बिते दक आस क्रम संख्या म ें मद (2)(ग) म ें िाजमल कुछ भी 31 माच,च 2031 के बाद प्रभािी नहीं होगा। स्ट्पष्टीकरण - िंकाओं को दरू करन े के जलए, आस प्रजिजष्ट की मदों (1) (क) और (1) (ख) में ऄन्द्तर्विष्ट छूै ईपलब्ध होगी, यद्यजप यदद संयोजन के जलए अिश्यक एक या ऄजधक घैकों, भागों या ईप-संयोजनों की अिश्यकता हो एक पणू च िाहन दकै में अयात नहीं दकया जाता ह,र परन्द्तु दक प्रस्ट्तुत दकै, जनिचचन के साधारण जनयमों के ऄनुसार सीमा िुल्क ैरिर ऄजधजनयम, 1975 के िीर्चक 8703 के ऄधीन िगीकरणीय ह र।";[भाग II—खण् ड 3(i)] भारत का राजपत्र : ऄसाधारण 3 (2) ऄनुबंध म,ें ितच संख्या 116 और ईससे संबंजधत प्रजिजष्टयों के बाद, जनम्नजलजखत ित च संख्या और प्रजिजष्टया ाँ ऄंत:स्ट् थाजपत जाएगं ी, ऄथाचत:् - (1) (2) “117. यदद अयातक, अयात के समय, भारी ईद्योग मंत्रालय (एमएचअइ) में भारत सरकार के सयं ुि सजचि या ििरष्ठ ऄजधकारी स ेएक प्रमाण पत्र प्रस्ट्तुत करता ह रदक, - (i) अयातक के पास भारी ईद्योग मंत्रालय का.अ. संख् या 1363 (ऄ) ददनांक 15 माचच, 2024 द्वारा ऄजधसूजचत 'भारत म ें आलेजक्रक यात्री कार जिजनमाचण संिर्द्नच स्ट् कीम ' के तहत भारी ईद्योग मंत्रालय द्वारा जारी िरध ऄनुमोदन पत्र ह।र (ii) अयातक ईपरोि स्ट् कीम की ितक को पूरा करता ह र और अयात दकए जाने िाले िाहनों की मात्रा ईपरोक्त स्ट् कीम के परर ा 1.3.5 और 1.3.6 म ें जनधाचिरत सीमा के भीतर ह;र और (iii) अयातक अयाजतत माल के संबंध में आस छूै के ऄनुदान के जलए पात्र ह।र ” । [ ा. सं. सीबीअइसी 190354/42/2024-ैीअरयू सेक् िन –सीबीइसी] जिक्रम जिजय िानेरे, ऄिर सजचि नोै:- प्रधान ऄजधसूचना संख् या 50/2017-सीमा िुल्क, ददनांक 30 जून, 2017 को सा.का.जन. 785(ऄ), ददनांक 30 जून, 2017 के तहत भारत के राजपत्र, ऄसाधारण, के भाग ।।, खंड 3, ईप खंड (i) में प्रकाजित की गइ थी और आसमें ऄंजतम बार ऄजधसूचना संख्या 16/2024-सीमा िुल्क, ददनांक 12 माचच, 2024, जजसे सा.का.जन. 183 (ऄ), ददनांक 12 माच,च 2024 के तहत भारत के राजपत्र, ऄसाधारण, के भाग ।।, खंड 3, ईप खंड (i) में प्रकाजित दकया गया था, के द्वारा संिोधन दकया गया था । MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 15th March, 2024 No. 19/2024-Customs G.S.R. 206(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), 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. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R. 785(E), dated the 30th June, 2017, namely:- In the said notification, (1) in the Table, for S. No. 526A and the entries relating thereto, the following S. No. and entries shall be substituted, namely: - (1) (2) (3) (4) (5) (6) ―526A. 8703 Electrically operated vehicles, if imported,- (1) incomplete or unfinished, as a knocked down kit containing necessary components, parts or sub- assemblies for assembling a complete vehicle, including battery pack, motor, motor controller, charger, power control unit, energy monitor, contactor, brake system, electric compressor, whether or not individually pre-assembled, with – (a) none of the above components, parts or sub- 15% - - assemblies inter-connected with each other and not mounted on a chassis4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (b) any of the above components, parts or sub- 35% - - assemblies inter-connected with each other but not mounted on a chassis (2) in a form other than (1) above, - (a) with a CIF value more than US $40,000 100% - - (b) other than (a) above 70% - - (c) with a minimum CIF value of US $35,000 15% - 117‖; imported in terms of provisions of the ‗Scheme to promote manufacturing of electric passenger cars in India‘ notified vide S.O. No. 1363 (E) dated 15th March, 2024, by the Ministry of Heavy Industries: Provided that nothing contained in item (2)(c) in this S. No. shall have effect after the 31st March, 2031. Explanation. – For the removal of doubts, the exemption contained in items (1)(a) and (1)(b) of this entry shall be available, even if one or more of the components, parts or sub-assemblies required for assembling a complete vehicle are not imported in the kit, provided that the kit as presented, is classifiable under the heading 8703 of the Customs Tariff Act, 1975 as per the general rules of interpretation. (2) in the Annexure, after condition number 116 and the entry relating thereto, the following condition number and entry shall be inserted, namely: - (1) (2) ―117. If the importer, at the time of import, furnishes a certificate from an officer not below the rank of a Joint Secretary to the Government of India in the Ministry of Heavy Industries (MHI) to the effect that,- (i) the importer holds a valid Approval Letter issued by the Ministry of Heavy Industries under the ‗Scheme to promote manufacturing of electric passenger cars in India‘ notified vide S.O. No. 1363 (E) dated 15th March, 2024, by the Ministry of Heavy Industries; (ii) the importer satisfies the conditions of the aforesaid scheme and the quantity of the vehicles being imported is within the limits prescribed in Para. 1.3.5 and para. 1.3.6 of the aforesaid scheme; and (iii) the importer is eligible for grant of this exemption in respect of the goods being imported.‖. [F. No. CBIC-190354/42/2024-TRU Section-CBEC] VIKRAM VIJAY WANERE, Under Secy. Note: The principal notification No. 50/2017-Customs, 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. 785(E), dated the 30th June, 2017, and was last amended vide notification No. 16/2024-Customs, dated the 12th March, 2024, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), vide number G.S.R. 183(E), dated the 12th March, 2024.[भाग II—खण् ड 3(i)] भारत का राजपत्र : ऄसाधारण 5 ऄजधसचू ना नइ ददल् ली, 15 माचच, 2024 स.ं 20/2024-सीमािल्ु क सा.का.जन. 207(ऄ).—जित् त ऄजधजनयम, 2018 (2018 का 13) की धारा 110 के साथ पिठत सीमा िल्ु क ऄजधजनयम, 1962 (1962 का 52) की धारा 25 की ईप धारा (1) के तहत प्रदत्त िजियों का प्रयोग करत े हुए, केन्द् र सरकार, आस बात स े संतुष्ै होते हुए दक ऐसा करना जनजहत म ें अिश्यक ह,र एत्ारा, सा.का.जन. 114(ऄ), ददनांक 2 रिरी, 2018, के माध्यम से भारत के राजपत्र, ऄसाधारण, भाग II, खंड 3, ईप-खंड (i) म ें प्रकाजित भारत सरकार के जित्त मंत्रालय (राजस्ट्ि जिभाग) की ऄजधसूचना संख्या 11/2018-सीमािुल्क, ददनांक 2 रिरी, 2018 में जनम्नजलजखत और संिोधन करती ह,र ऄथाचत ् :- ईि ऄजधसूचना म,ें सारणी म,ें क्रम सं. 57 के समक्ष, मद (iv) के बाद और िब्दों “के ऄंतगचत अन”े से पहल,े जनम्नजलजखत मद को ऄन्द्तःस्ट्थाजपत दकया जाएगा, यथा: - “(v) स्ट् तंभ (3), क्रम सं. 526क की मद (2) की ईपमद (ग);” [ ा. सं. सीबीअइसी 190354/42/2024-ैीअरयू सेक् िन –सीबीइसी] जिक्रम जिजय िानेरे, ऄिर सजचि िैप्पणी: - मूल ऄजधसूचना संख्य ा 11/2018-सीमा िुल्क, ददनांक 02 रिरी, 2018 को सा.का.जन.स.ं 114(ऄ), ददनांक 02 रिरी, 2018 के तहत भारत के राजपत्र, ऄसाधारण, भाग ।।, खंड 3, ईप-खंड (i) में प्रकाजित दकया गया था और आसमें ऄंजतम बार ऄजधसूचना संख्या 4/2024-सीमा िुल्क, ददनांक 22 जनिरी, 2024, जजसे सा.का.जन.स.ं 54(ऄ), ददनाकं 22 जनिरी, 2024 के तहत भारत के राजपत्र, ऄसाधारण, भाग ।।, खडं 3, ईप खंड (i) म ेंप्रकाजित दकया गया था, के द्वारा संिोधन दकया गया था। NOTIFICATION New Delhi, the 15th March, 2024 No. 20/2024-Customs G.S.R. 207(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with section 110 of the Finance Act, 2018 (13 of 2018), 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. 11/2018- Customs, dated the 2nd February, 2018 published in the Gazette of India , Extraordinary , Part II, Section 3, Sub-section (i), vide number G.S.R 114 (E), dated the 2nd February, 2018, namely :- In the said notification, in the Table , against Sl. No 57, in column (2), after item (iv), and before the words “of the Table”, the following item shall be inserted, namely: - “(v) column (3), sub-item (c) of item (2) of S. No. 526A;‖. [F. No. CBIC-190354/42/2024-TRU Section-CBEC] VIKRAM VIJAY WANERE, Under Secy. Note:- The principal notification No. 11/2018-Customs, dated the 2nd February, 2018 was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 114(E), dated the 2nd February, 2018 and last amended vide notification No. 4/2024-Customs, dated the 22nd January, 2024, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 54 (E), dated the 22nd January, 2024. 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.

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