No exemption for SEZ units under the proposed Central Excise Bill

The proposed Central Excise Bill, 2024, intends to eliminate the exemption of excisable goods produced in Special Economic Zones (SEZs) from duty, subject to separate notification by the Central government. This move aims to curb misuse of incentives and duty evasion at SEZ units. \r

However, it's unlikely to be part of the upcoming full Budget. Currently, central excise duty applies mainly to tobacco, crude oil, gasoline, diesel, natural gas, and air turbine fuel, while most goods fall under the GST regime. \r

The Bill also outlines conditions for availing excise duty credit, replacing the existing CENVAT credit with specific provisions for central excise duty credit, allowing for the transfer of unutilized credit balances.