Clarity on Social Welfare Surcharge: Finally, a welfare move!

Jigar Doshi & Sagar Shah – [2022] 135 taxmann.com 48 (Article)

The Union Budget may be getting mixed feedback from the industry; however, one extremely imperative clarity that has been brought in is in respect of levy of Social Welfare Surcharge (SWS) on imports where Basic Customs Duty (BCD) is exempt.

Vide Circular no. 3/2022 dated 1st February 2022; the CBIC has clarified that if aggregate customs duty payable is zero on account of an exemption, the SWS shall be computed as 10% of value equal to ‘Nil’ (as aggregate amount of customs duties payable is zero). In this article, the authors have analysed the clarification along with the background of issue and impact on stakeholders.

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