Background:
The GST Council in its 55th meeting held on December 21, 2024, recommended several significant decisions aimed at tax rate changes, trade facilitation, and compliance streamlining under GST. It also recommended to extend IGST exemption to systems, sub-systems, equipment, parts, sub-parts, tools, test equipment, software meant assembly/manufacture of LRSAM system under Notification No. Notification No. 19/2019-Customs, dated July 06, 2019 (“the Customs Rates Notification”).
Now:
The CBIC issued Notification No. 02/2025-Customs dated January 16, 2025, to amend the Customs Act, 1962 (“the Customs Act”). This amendment, authorized under sections 25(1) of the Customs Act and Section 3(12) of the Customs Tariff Act, 1975 brings amendment to the Customs Rates Notification.
The key change is that in the said notification, in the Table, against Sl. No. 21, in column (3), for item (II), the following shall be substituted namely:
“(II) Systems, sub-systems, equipment, parts, sub-parts, tools, test equipment, software meant for Long Range Surface to Air Missile System (LRSAM)”
The notification declares that these changes will come into force with immediate effect.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/01/CBIC-N.No_.-02_2025-Customs.pdf
