The Central Government, vide notification no. 14/2024 – Customs dated 14th March 2024 has granted the exemption to customs tariff and Agriculture Infrastructure and Development Cess ( AIDC ) for gold imported into India by the Reserve Bank of India ( RBI ).
Under the provisions outlined in sub-section (1) of section 25 of the Customs Act, 1962, and sub-section (12) of section 3 of the Customs Tariff Act, 1975, the Central Government has invoked its authority, citing the imperative nature of the action in the public interest.
The exemption encompassed gold categorised under Customs Tariff Heading 7108 of the First Schedule to the Customs Tariff Act, 1975. By waiving the entire customs duty leviable on gold imports, as specified in the First Schedule to the Customs Tariff Act, 1975, the government aims to facilitate the Reserve Bank of India’s endeavours in managing the nation’s gold reserves efficiently.
Additionally, the exemption extends to the Agriculture Infrastructure and Development Cess, mandated under Section 124 of the Finance Act, 2021.
A cess introduced by the central government acts as an additional charge above prevailing taxes, with a specific purpose determined by governmental authorities. In the context of agricultural operations in India, the Agriculture Infrastructure and Development Cess represents a form of taxation imposed on commercial agricultural output within the nation.
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