Union Budget 2025 Highlights - GST & Customs

CUSTOMS LAW AMENDMENTS

1. Procedural Reforms

A. Time-Bound Provisional Assessments (Section 18) :

A new sub-section (1B) introduces a 2-year time limit for finalizing provisional assessments, extendable by 1 year for sufficient cause by the Commissioner of Customs. Sub-section (1C) provides for suspension of this time limit under specific circumstances until such grounds cease to exist. For pending cases, the time limit will be reckoned from the date of assent of the Finance Bill, 2025.

Impact: Provides clarity and ensures timely resolution of provisional assessments, reducing litigation.

B. Voluntary Revision (New Section 18A)

Importers/exporters can revise entries in relation to BOEs - post-clearance within a prescribed time frame and conditions. Revised entries will be treated as self-assessment as well, allowing payment of additional duty or refund claims under Section 27. Certain cases (e.g., fraud or misdeclaration) are excluded.