Tax Exemption on Capital Goods for Lithium-Ion Battery Production

Finance Minister Nirmala Sitharaman on Sunday announced an extension of basic customs duty exemption on capital goods used for manufacturing lithium-ion cells for battery storage in the annual budget for the next financial year. 

In her budget speech, she also proposed to exclude the entire value of biogas while calculating excise duty levy on (biogas) blended CNG (compressed natural gas).

"I



propose to extend the basic customs duty exemption given to capital goods used for manufacturing lithium-ion cells for batteries. 

Also, I propose to exempt basic customs duty on import of sodium anti Monet, for use in manufacturing of solar glass," she said. 

It is proposed to provide basic customs duty exemption to the import of capital goods required for the processing of critical minerals in India.