The Finance Minister has introduced the Finance Bill in Lok Sabha on 01.02.2017, which has proposed a change CENVAT credit system.
CenVAT credit system is a credit in respect of central excise on inputs purchased for the manufacture or duty paid in relation to the manufacture of the final product. CENVAT credit is also available in respect of duty paid on capital goods, which include machinery, plant, spare parts of machinery etc. in other words, instead of paying cash towards central excise on shipment of goods, the exporter can adjust the excise duty paid on the inputs and machinery.
The changes in CENVAT credit system have been explained in a video by CA Ashok Batra, expert of Indirect Tax.