Major rejig of Customs duty, GST being planned
The government has identified a clutch of products where inverted duty structure is distorting trade and impacting manufacturing competitiveness and has initiated the process to address the issue, a senior official said.
Among the products that have been identified are washing machines, air purifiers, solar glass, paper, furniture, apparel and jewellery. Some of these products are on the list identified for special attention under Make in India initiative.
Inverted duty structure is a situation where inputs and raw materials attract higher tax than the finished products. In cross border trade it makes imports of finished products cheaper than raw material and disincentivises local manufacturing.
