GST examining steel imports for safeguard duty imposition: CBIC Chairman
The Union Budget 2025-26 announced measures to rationalise tariff structures amid disruptive trade policies of the new US administration.
In an interview with DH’s Gyanendra Keshri, the Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal spoke about the impact of the basic custom duty cuts on India’s foreign trade.
He also delved on the discussions related to Goods and Service Tax on petroleum products and the reforms in the indirect tax system. Here are excerpts from the interview:
In the budget, a comprehensive review of custom duty structure has been announced. Seven tariff rates for industrial goods have been removed. Now the average rate of customs duty in India will come down to 10.66 per cent from the earlier 11.66 per cent. Our custom rate is closer to the ASEAN countries now. So this narrative of the tariff king is not correct.
It’s more a restructuring exercise. Some tariff rates have been removed and merged with the closer rates. High tariff rates like 150 per cent, 125 per cent and 100 per cent have been eliminated and merged with 70 per cent. Similarly 40 per cent, 35 per cent, 30 per cent and 25 per cent have been brought to 20 per cent.
But the industry should not feel any sudden shock. So we have adjusted cess accordingly. Agriculture infrastructure and development cess (AIDC) has been increased where the rates have been lowered.
We consult stakeholders on AIDC and see how it can be reduced. So the restructuring of rates will not have any significant impact on revenue.
