The CBIC has issued notification no 38/2022 to extend the exemption of Customs Duty and AIDC on Cotton, not carded or combed falling under HSN 5201 till 31st October, 2022. Earlier, this exemption was provided till 30th September, 2022 and now it has been extended by one month.
Now the question arises regarding custom duty and AIDC
Customs duty refers to the tax imposed on goods when they are transported across international borders. In simple terms, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.
AIDC-Agriculture Infrastructure and Development Cess (AIDC)” means a duty of customs that is levied under Section 124 of the Finance Act, 2021.
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